Processes for inventory management typically consist of four basic steps:
Inventory Planning: To guarantee sufficient stock availability, this entails estimating demand, establishing inventory levels, and figuring out reorder points.
Purchasing: Ordering and obtaining the required products or materials from suppliers is the first step in purchasing, which is carried out after inventory needs are determined.
Receiving and Storing: After delivery, goods are taken in, examined for quality, and kept in special areas of the building.
Inventory Tracking and Control: Maintaining optimal inventory management efficiency by regularly checking inventory levels, tracking movements, and putting control mechanisms in place to avoid stockouts or surplus inventory.