Inventory management is essential for businesses that want to take the most out of their stock. When appropriately managed, your inventory meets customer demand without stockouts, which can lead to lost sales and dissatisfied customers. You can also minimize inventory holding costs by preventing overstocking and reducing the risk of obsolete or expired products. You will experience better financial planning, as excessive inventory ties up capital that could be used for other business purposes. Moreover, efficient stock management allows for accurate forecasting and enterprise resource planning, enabling businesses to optimize production and procurement processes.