Blog 17

What Is Inventory Management?

POSTED ON October 15, 2019

Inventory management refers to all of the dynamic processes surrounding the ordering, storage, and deployment of a particular seller’s inventory. Following on the heels of this definition, inventory management may include both the storage of raw and processed materials as well as related components and already manufactured products. Warehousing as well as processing these items on Amazon are all part of inventory management.

For sellers on Amazon, inventory management has much more relevance than supply chain management, which is more pertinent to vendors and B2B businesses. Because Amazon sellers usually sell in a B2C environment, most or all aspects of supply chain management are already handled by the time an order is ready for processing. Still, Amazon sellers must keep a strict inventory of all of their wares and be ready to efficiently deploy those products out to consumers. Once the sale is completed, inventories must be updated to reflect the changes and turnover of products.

In most cases, inventory management is treated as a component of supply chain management because both of these processes are interrelated insofar as turning raw materials into a final, marketable product requires intelligently working with manufacturers, vendors, and warehouses.Transporting the product from the warehouse to the point of sale, or from one retail location to another, is a critical component of supply chain management. Inventory management, by contrast, is a more self-contained sub-class of supply chain management in the sense that it is more exclusively concerned with the storage and management of inventory.

For Amazon sellers, inventory management has make-or-break importance in the sense that success as a large-scale Amazon re/seller would be hard to fathom without efficient inventory management. If an Amazon seller didn’t have particular items in stock or, perhaps worse, didn’t know whether particular items were in stock or what quantities particular items were in stock, then the business wouldn’t be on solid footing. Successful order fulfillment depends on knowing your inventory like the back of your hand and being able to deliver for the buyer in the most efficient way possible.

Inventory management is a dynamic process that depends on keeping track of fluctuating inventories that evolve in response to orders. If you’re struggling to keep up with your inventory management or you simply want greater assurance that you’re on solid ground, then you might want to explore the potential of a few inventory management tools. BrightPearl and RestockPro, for instance, are two inventory management tools that take the guesswork out of storing and processing orders on Amazon.These inventory management systems are so useful because they consolidate a bunch of complicated processes in one place. What can be automated is automated with these inventory management tools.

The best inventory management tools are cloud-based and allow you to efficiently and remotely keep track of everything. Keeping accurate inventories are, after all, the lifeblood of Amazon sellers in the sense that they would be severely hobbled without the ability to efficiently keep tabs on evolving inventories in real time.