Inventory is an asset that is owned by a business that has the express purpose of being sold to a customer. This includes items sold to end customers or distributors. It includes raw materials, work in process, and finished goods. The management of inventory is a key concern of all businesses. If a company's inventory level is too low, it risks delays in fulfilling it's customers orders. If the inventory is too high, it is tying up dollars that can be better used in other areas. It also risks obsolescence and spoilage. Successful businesses keep their inventory turns high, but also keep their service level at or above the industry standard.<br><br>Perhaps the most valuable way POS systems help you gain better control of your business is through their reporting features. You can slice and dice sales data in a variety of ways to determine what products are selling best at what time, and to figure out everything from the optimal ways to arrange shelves and displays to what promotions are working best and when to change seasonal promotions.<img class='alignleft' style='float:left;margin-right:10px;' src='http://www.psychologytoday.com/files/imagecache/og/blogs/127254/2014/01/142374-143572.png' width='263' alt='inventory management definition and meaning'/><br><br>Reporting capabilities available in POS programs include sales, costs, and profits by individual inventory items, by salesperson, or by category for the day, month and year to date. Special reports can include sales for each hour of the day for any time period. You <a href="http://www.confianzit.com/cit-blog/openerp-inventory-management-software/">open source warehouse management</a> can also create multiple formats for invoices, accounting statements and price tags. Additional reports include day-end cash reconciliation work sheets and inventory management. Examine a variety of POS packages to <a href="http://www.confianzit.com/cit-blog/openerp-inventory-management-software/">inventory software open source</a> see which comes closest to meeting your needs.<br><br>The blueprint for success is Integrated Inventory Management. This methodology provides a vehicle that helps arrive at the right decisions about what to buy, when to buy it, what to keep in stock and what to eliminate. It provides a disciplined process that effectively controls storeroom investment and associated inventory costs while maintaining an acceptable level of service.<br><br>The green-colored figures represent input/output data, reports or other electronic documents developed and/or used throughout each step to support the overall process. In most cases, these will be addressed within the subject matter of the appropriate work process where they are used or produced. In other cases, it will be necessary to address them separately.<br>