A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Inventory is the total quantity of stock that the business owns. It includes its stock of finished goods, work-in-progress items, and raw materials. A company’s inventory is classified as an asset for accounting purposes.
Inventory is usually taken at the end of the financial year or daily so the business always has the latest numbers on hand. Inventory is crucial to a business as it affects their capability to respond to customer needs and demands, hence businesses adopt inventory management systems to help control and manage their stock.
Inventory management refers to the practice of acquiring, storing, and tracking a business’s inventory. In doing so, there is complete clarity about how much inventory a business has at any point in time. This allows them to make accurate purchasing decisions so they are able to deliver on orders placed, save money, provide accurate product reports and be able to quickly identify any potential problems in their inventory levels.