What Is Inventory Management? | Definition from TechTarget
Summary
A key function of inventory management is to keep a detailed record of each new or returned product as it enters or leaves a warehouse or point of sale. This overstocked inventory, which is also called dead stock, will often sit in storage, unable to be sold, and eat into a businesss profit margin. Compared to larger organizations with more physical space, in smaller companies, the goods may go directly to the stock area instead of a receiving location. Inventory management software systems generally began as simple spreadsheets that track the quantities of goods in a warehouse but have become more complex since. Small and midsize companies typically dont need such complex and costly systems, and they often rely on standalone inventory management products, generally through software as a service (SaaS) applications.