What is Inventory Management

Inventory management in an organization is the process of tracking and control of various items. 

Some of the items that are being tracked with inventory management include:

  1. Raw materials: Inventory management helps in tracking the quantity and availability of raw materials needed for production or manufacturing processes. This ensures that there are sufficient raw materials on hand to meet production demands and avoids stockouts or delays in production.
  2. Finished goods: Inventory management enables the tracking of finished goods or products that are ready for sale or distribution. It helps in monitoring the stock levels of finished goods to ensure that there is enough inventory to fulfill customer orders in a timely manner.
  3. Work-in-progress (WIP): Inventory management can also track items that are in the process of being manufactured or assembled. This includes partially completed products or components that are being worked on in various stages of the production process. Tracking WIP inventory helps in identifying bottlenecks or issues in the production flow and ensures smooth operations.
  4. Spare parts and components: Many organizations, especially those in the manufacturing or equipment maintenance industry, need to track spare parts and components that are used for repairs or replacements. Inventory management allows for the monitoring of these items to ensure that they are readily available when needed, minimizing downtime and improving maintenance processes.
  5. Supplies and consumables: Inventory management can track supplies and consumables that are used in day-to-day operations, such as office supplies, cleaning materials, packaging materials, and other items necessary for the smooth functioning of the organization. By tracking these items, inventory management helps in maintaining optimal stock levels and avoiding shortages.
  6. Equipment and assets: Some organizations may choose to track their equipment and assets as part of their inventory management system. This can include items such as machinery, vehicles, SaaS tools, and other valuable assets. By tracking these items, organizations can ensure proper maintenance, prevent loss or theft, and optimize the utilization of their assets.
  7. IT Assets: things like laptops, servers, printers and many other computer and IT related devices can be tracked with an ITAM software.
  8. Promotional materials: Organizations that engage in marketing and promotional activities may use inventory management to track and manage promotional merchandise or giveaways. This includes items such as branded merchandise, promotional materials, and event giveaways. By tracking these items, organizations can ensure that they have enough stock for promotional campaigns and events.

As you can see, inventory management plays a crucial role in tracking and controlling various items within an organization. It helps in maintaining optimal stock levels, preventing stockouts or excess inventory, improving operational efficiency, and ensuring customer satisfaction.

You can track assets manually, or use a specialized tool like Asset Vue, or build your own custom asset tracking tool using a low code online database like Kohezion