An inventory management system is a software system that helps in monitoring the stock of your business. Inventory management systems are employed across all kinds of companies, including retail businesses, wholesale and distribution companies, and manufacturers. Depending on the type of company, inventory management systems may include order management systems. For example, wholesale and distribution companies and manufacturers may keep track of purchase orders and sales orders and their associated shipments as transactions that change stock levels. On the other hand, retail companies may do stock takes or physical inventories to measure their stock levels on a regular basis instead of keeping track of the individual transactions. Inventory control is the process of monitoring the quantities, locations, and lot information of a company’s stock of materials and on the basis of this information making business decisions that result in stock levels that support the company’s operations efficiently. The process of inventory management is necessary in a variety of places to protect a company’s operations from being disrupted by not having enough materials, goods, and stock or not knowing where they are located. The challenges of inventory management involve inventory carrying costs, replenishment lead time, asset management, inventory forecasting, inventory valuation, forecasting of future asset management price, physical space available for inventory, physical inventory, demand forecasting, inventory visibility, defective goods, and returns. Important Aspects With the goal of inventory and warehouse management being to stabilize the systems of companies trying to maintain optimum numbers of stock, the procedure is a continuing one, requiring adapting to the shift of your company needs as the company grows. On a larger scale, inventory management includes aspects that may have been manageable manually when the company was smaller. As an example, on a larger scale order management systems help ensure warehouses have sufficient items for their needs while also, managing considerations involving ordering, shipping, and handling products. Competitive Advantage to your Company Stock management systems provide a competitive advantage to your company, regardless of what is being sold, traded, or provided. The systems provide the information and visibility to help companies make informed decisions pertaining to their resources, which enables companies to run more efficiency and to eliminate disruptions to business operations as the company grows or changes. Minimize Operating Expenses Inventory management systems reduce business operating expenses by efficiently keeping track of stock levels and, thereby, facilitating operations with faster processes, less down-time, and less waste. Nowadays, inventory control systems are also deeply involved in satisfying compliance and regulatory standards requirements, which in various kinds of businesses are an expensive component of a company’s operations. Whether a company is in the manufacturing sector or the retail or distribution trade, stock management systems provide efficiencies in the administrative controls that lead to cost savings and lower operating expenses. Replenishment Process Through forecasting and re-order features, stock management facilitates a replenishment process for warehouses to avoid stock outs, overstock and expired products. With effective re-order practices, inventory control systems provide a benefit to any company by enabling inventory, ordering, and shipping to be done as efficiently and cost effectively as possible. http://www.finaleinventory.com/