5 key stages of Inventory Management Process
Inventory management is keeping track of and controlling stock as it moves from suppliers to warehouses to customers. The following are the five major stages to follow:
Purchase: This can refer to purchasing raw materials to transform into products or purchasing ready-to-sell products that don’t require any assembly.
Produce: The process of assembling your finished product from its component pieces. Not every business will engage in manufacturing; wholesalers, for example, may choose to skip this step entirely.
Stock: Keeping your raw materials in storage before they’re manufactured (if necessary) and your final goods in storage before they’re sold
Sell: Getting your inventory into the hands of customers and collecting payment.
Report: Companies must know how much they are selling and how much money they are making on each sale.