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.