Inventory Management

Last updated 5 months ago

Create and manage warehouses. Inbound, outbound and transfer stock. Stay on top!

What is inventory management?

Inventory management is the supervision of non-capitalized assets (inventory) and stock items. Inventory management supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.

A key function of inventory management is to keep a detailed record of each new or returned product as it enters or leaves a warehouse or point of sale.

Let’s understand the operation part of inventory management step by step:

  1. A new product enters a warehouse.

  2. Its allocation is done through bar coding or SKU also known as Item Allotment.

  3. A transfer (inbound or outbound) might be made from 1 warehouse to another for various reasons.

  4. The product leaves warehouse at the time of sale.

  5. It again comes back due to customer return.

  6. Inventory management also calculate any missing or damage of product as it will count as inventory loss.

    Drop ship and quality control is managed under inventory management as well.

It’s not by God’s grace that a product will find its way to a warehouse. It has to be procured or purchased.

Let us briefly understand procurement.

A procurement is a request for a specific quantity of products to a specific location. It includes following steps:

  1. Identification of Requirement

  2. Authorization of Purchase Request

  3. Approval of Purchase Request

  4. Procurement

  5. Identification of Suppliers

  6. Inquiries Receipt of the Quotation

  7. Negotiation

  8. Selection of the Vendor

  9. Purchase Order Acknowledgement

  10. Advance Shipment Notice

  11. Goods Receipt

  12. Invoice Recording

  13. 3 Way Match

  14. Payment to Supplier

How to videos: