Get 10% back on your first $50,000 in branded sales. Learn moreGet 10% back on your first $50,000 in branded sales. Learn more
Have you ever tried to order a new product only to find it out of stock? Did you remember to check back to purchase that product, or did you find a similar product elsewhere? For the seller, this was likely a missed chance to make a sale. Proper inventory management can help prevent missed sales opportunities like this and keep customers coming back.
What is inventory management?
Inventory management is the process of tracking the products in your store or warehouse so you’re able to meet customer demand. It helps you know what you have, what to order, and when to order it. With effective inventory management, you’re less likely to run out of items customers want, and you can avoid overstocking those that aren’t selling.
Key takeaways
- Inventory management benefits include keeping the right amount of stock to meet customer demand, reducing warehouse costs, and improving cash flow.
- Effective inventory management can create a positive customer experience and helps prevent inventory aging.
- There are multiple inventory management methods, including Just-In-Time, ABC analysis, dropshipping, bulk shipments, first-in, first-out (FIFO), and last-in, first-out (LIFO)
- To optimize your inventory process, you can use economic order quantity (EOQ) and minimum order quantity (MOQ) techniques.
- The key steps of the inventory-management process are receiving products, sorting and stocking products, receiving and fulfilling orders, and replenishing stock.
- An inventory-management system can automate many tasks and help you make smart business decisions.
- Amazon offers various solutions like Fulfillment by Amazon (FBA), Fulfilled by Merchant, and Supply Chain by Amazon to help you manage inventory and fulfillment processes effectively.
Inventory-management benefits
When you effectively manage your inventory, you can enjoy several benefits that boost your business. Here are a few.
Reduce warehouse costs and improves cashflow
Buying the right amount of products at the right time can reduce storage costs and prevent missed sales. You can also improve cash flow by paying suppliers on time and avoiding penalties or fees.
Warehouse storage costs cover rent, utilities, maintenance, security, insurance, labor, equipment, and software. Inventory management optimizes the use of storage space, reduces the risk of stranded or dead inventory, and increases the efficiency of your operations.
Monitoring your inventory to sales ratio can help you understand how quickly inventory is turning into sales, allowing you to make more informed purchasing decisions.
Warehouse storage costs cover rent, utilities, maintenance, security, insurance, labor, equipment, and software. Inventory management optimizes the use of storage space, reduces the risk of stranded or dead inventory, and increases the efficiency of your operations.
Monitoring your inventory to sales ratio can help you understand how quickly inventory is turning into sales, allowing you to make more informed purchasing decisions.
Learn the lingo:
Stranded inventory and dead stock
Stranded inventory: Sellable inventory that may be in a fulfillment center or warehouse, but isn’t listed for sale on your site
Dead stock: Unsold merchandise that’s often outdated, out of season, or in low demand
Dead stock: Unsold merchandise that’s often outdated, out of season, or in low demand
Improve fulfillment efficiency
Accurate inventory helps avoid out-of-stock items, overstocks, and misplacements. It also optimizes warehouse layout, storage, and replenishment that helps reduce fulfillment and travel time.
Learn the lingo:
Overstock and misplacements
Overstock: When a business buys more of a product than it sells
Misplacements: When recorded items in stock are placed in the wrong rack or aisle. Misplaced inventory may occur when items aren’t monitored and recorded in-stock after arriving at a warehouse.
Misplacements: When recorded items in stock are placed in the wrong rack or aisle. Misplaced inventory may occur when items aren’t monitored and recorded in-stock after arriving at a warehouse.
Create a positive customer experience
Shipping delays, errors, and out-of-stock products can cause customer dissatisfaction and harm your business’s reputation. Knowing how much inventory you have on hand so you can fulfill orders swiftly helps delight customers.
Prevent inventory aging
“Inventory aging” is a term used to describe items in a warehouse that are not selling quickly or at their full retail price. Inventory management can help prevent this by tracking sales velocity, forecasting demand accurately, and improving stock replenishment.
Create efficient reordering
An automatic reordering system can help simplify the inventory tracking process. It can automatically order products as they run low, which avoids the risk of losing track of which products have been ordered and which have not.
Detect problems early
Auditing inventory regularly helps fix inventory errors and discrepancies, and it can detect problems early. Be sure to inspect products when they first arrive for defects, and check actual inventory against system records.
What are the types of inventory management?
When it comes to managing inventory, you have a few different methods to choose from. Each method has its own unique way of helping you keep track of products and meet customer needs.
Just-in-Time (JIT)
With Just-in-Time (JIT) inventory management, you order products just before you need them. This method helps reduce storage costs because you don’t keep a lot of stock on hand. It’s a great way to ensure you have fresh products, but it requires precise timing and reliable suppliers to avoid running out of stock.
ABC analysis
ABC analysis is a way to categorize inventory based on importance. You split products into three groups:
- A items: These are best-selling products that bring in the most revenue. They need close monitoring.
- B items: These are moderately important products that sell regularly but don’t bring in as much revenue as A items.
- C items: These are the least important products, usually low-cost items that don’t sell often.
Dropshipping
Dropshipping is a method where you don’t keep any products in stock. Instead, when a customer places an order, you buy the item from a third-party supplier who ships it directly to the customer. With dropshipping, you don’t have to worry about storage or handling products.
Bulk shipments
Bulk shipments involve ordering large quantities of products at once. This method can save you money on shipping costs and often comes with discounts from suppliers. However, it requires a lot of storage space and can tie up cash in inventory that might not sell quickly.
First-in, first-out (FIFO) and last-in, first-out (LIFO)
FIFO and LIFO are methods related to how you manage the flow of inventory.
- FIFO: With first-in, first-out, the oldest stock is sold first. This method is especially important for perishable goods, where you want to sell items before they expire. FIFO also ensures you provide customers with the freshest products available.
- LIFO: Last-in, first-out is the opposite approach. With LIFO, the most recently added items are sold first. While this method can help manage costs during times of inflation, it’s less common for businesses that deal with perishable goods, as it can lead to older stock lingering on shelves.
Each of these methods has its own advantages and challenges. The key is to choose the one that best fits your business needs and helps you delight customers.
To further optimize inventory management, you can also apply these techniques:
To further optimize inventory management, you can also apply these techniques:
- Economic order quantity (EOQ): Economic order quantity is a formula that can help you strike the right balance between ordering too much and ordering too little. It helps you determine the ideal amount to order so you can minimize costs, such as storage and ordering fees. EOQ considers factors like lead time, carrying costs, and demand variability to help you make informed decisions.
- Minimum order quantity (MOQ): Minimum order quantity is the smallest amount of a product that a supplier is willing to sell to you. If you’re starting out or working with a new supplier, understanding MOQs helps you plan orders to ensure that you meet these minimum requirements, which can prevent delays in getting the stock you need. Be sure to check if your suppliers have MOQs that fit your business model.
5 steps of the inventory-management process
There are several stages in the ecommerce inventory-management process. From stocking products to fulfilling customer orders, each step is key to help keep your business running smoothly.
1. Receive and inspect your products
Inspect raw goods and products when they’re delivered to your facility or warehouse. Ensure correct quantities, serial codes, and check for defects.
2. Sort and stock products
Store inspected products in your warehouse and update your tracking system for easy stock visibility. You can organize products based on SKU or product type.
3. Accept customer orders
You’ve made a sale—now it’s time to process orders through a point-of-sale system or an inventory-management system.
4. Fulfill packages and ship orders
As soon as possible, pack and ship orders. Consider your product’s packaging needs and fulfillment options to ensure safe and timely arrival.
5. Reorder and manage existing stock
Minimize the risk of having too much, too little, or no stock, which can result in profit loss or a poor customer experience. Certain inventory-management systems can automate the reordering process so you don’t have to worry about replenishment. They can also help you predict future demand to optimize stock levels for holidays and key sales moments like Black Friday.
Effective inventory management takes time, but boosts store performance and delights customers. Poor inventory management can result in dead stock, high storage costs, unfulfilled orders, and reputational damage. Storage fees, holding costs, or the inability for customers to place orders can also decrease your profitability.
Effective inventory management takes time, but boosts store performance and delights customers. Poor inventory management can result in dead stock, high storage costs, unfulfilled orders, and reputational damage. Storage fees, holding costs, or the inability for customers to place orders can also decrease your profitability.
What are inventory-management systems?
Inventory-management systems track products from procurement to shipment. They can help you make critical business decisions such as how many units you need, your optimal inventory levels, when to reorder items, and which products to liquidate or remove.
The right inventory system can give you a realistic picture of what stock you have available to sell and help you run your business efficiently. It can be a manual count and ledger, a spreadsheet, or an automated software solution.
When an inventory-management system works correctly, you know what products you have available at a glance, along with important metrics like available shelf space, the amount of units in stock, and the precise storage location of individual products.
The right inventory system can give you a realistic picture of what stock you have available to sell and help you run your business efficiently. It can be a manual count and ledger, a spreadsheet, or an automated software solution.
When an inventory-management system works correctly, you know what products you have available at a glance, along with important metrics like available shelf space, the amount of units in stock, and the precise storage location of individual products.
Inventory control techniques for selling with Amazon
Inventory control is the process of ensuring you have the right number of products to fulfill customer orders. Optimizing inventory is necessary for understanding how much product you have at any given moment, when to expect the next shipment, and how to fulfill customer orders quickly. Amazon offers several solutions to help your brand get your inventory and fulfillment under control.
Fulfillment by Amazon (FBA)
Fulfillment by Amazon (FBA) lets you outsource order fulfillment to Amazon. When a customer makes a purchase in the Amazon store, we pick, pack, ship, and handle customer service and returns. Shipping with FBA costs 70% less per unit than comparable premium options offered by other US fulfillment services.
FBA can not only help you lower costs, but it can save you time so you can focus on growing your business. You can also use programs like Subscribe & Save to help to increase sales and secure repeat customers. Or use Buy with Prime to offer the Amazon experience on your other sales channels.
FBA can not only help you lower costs, but it can save you time so you can focus on growing your business. You can also use programs like Subscribe & Save to help to increase sales and secure repeat customers. Or use Buy with Prime to offer the Amazon experience on your other sales channels.
Fulfilled by Merchant
Fulfilled by Merchant offers a suite of Amazon tools that help you save time and money when you fulfill customer orders yourself.
Sync inventory and streamline orders from Amazon and other sales channels. Get great shipping rates and offer customers fast, reliable delivery while enjoying increased account-health protection for delivery-related claims.
Sync inventory and streamline orders from Amazon and other sales channels. Get great shipping rates and offer customers fast, reliable delivery while enjoying increased account-health protection for delivery-related claims.
Supply Chain by Amazon
Supply Chain by Amazon is a fully automated set of supply chain services that gets products from manufacturers to customers around the world. It’s a complete end-to-end solution that includes programs like FBA and Multi-Channel Fulfillment (MCF). Supply Chain by Amazon keeps products in stock, automates inventory replenishment, provides faster and more reliable shipping, and can significantly lower costs.
Multi-Channel Fulfillment
Multi-Channel Fulfillment (MCF) lets you outsource fulfillment for orders placed on your own website or other sales channels. With MCF, we use your pooled FBA inventory to provide fast, low-cost, and reliable fulfillment for multiple ecommerce channels.
For sellers who sell across multiple channels and websites, free Amazon inventory management software like Veeqo can sync and track inventory across channels, locations, and FBA. When you make a sale on one channel, Veeqo makes sure your inventory levels are updated across multiple channels, preventing overselling.
For sellers who sell across multiple channels and websites, free Amazon inventory management software like Veeqo can sync and track inventory across channels, locations, and FBA. When you make a sale on one channel, Veeqo makes sure your inventory levels are updated across multiple channels, preventing overselling.
Common inventory problems and how to avoid them
Having the right stock levels helps support online sales and enables your ecommerce business to thrive. But inventory can also hurt your business if mismanaged. Here are common inventory problems and some ways to avoid them.
Excess inventory
Having enough stock to ship out customer orders quickly is a good thing—but having too much inventory can cost you.
Excess inventory can tie up resources and run up storage costs. Aside from incurring unnecessary fees, you may be unable to respond quickly to shifts in customer demand, while aging inventory could force you to liquidate.
Excess inventory can tie up resources and run up storage costs. Aside from incurring unnecessary fees, you may be unable to respond quickly to shifts in customer demand, while aging inventory could force you to liquidate.
Did you know?
Amazon offers an excess inventory calculation report through FBA
We evaluate product demand, price elasticity, seller costs, and seller inputs to help ecommerce sellers manage their inventory effectively.
Amazon considers you to have excess inventory if you have:
Amazon considers you to have excess inventory if you have:
- Over 90 days of supply
- At least one unit aged over 90 days
- A better ROI opportunity (such as reducing the price to increase sales)
Ensure you have about two months of supply available, are selling products in a timely manner, and are exploring opportunities to increase sales to help earn a return on your investment and avoid storage fees.
Learn the lingo:
Sell-through rate
Sell-through rate is a measure of how well you balance inventory levels and sales. It’s calculated by dividing the number of units sold by the number of units received.
The FBA sell-through rate is a measure of how well you balance FBA inventory. For Amazon sellers, it’s updated daily in a Seller Central dashboard. Whether you use FBA or not, a high sell-through rate can show that you carry popular, fast-selling items.
Low stock levels
On the flip side, it’s essential to have enough inventory in stock to meet customer demand. Low stock levels can hurt your sales and brand reputation. No one likes to order an item only to find it’s out of stock.
The right inventory level for your business may depend on seasonality, sales history, or customer demands. Run a demand-planning analysis to arrive at the optimum inventory level.
The right inventory level for your business may depend on seasonality, sales history, or customer demands. Run a demand-planning analysis to arrive at the optimum inventory level.
Stranded or dead stock
Stranded inventory is sellable inventory that may be in a fulfillment center or warehouse but isn’t listed for sale on your site. It hurts your business because it ties up your cash. You paid for the products and are paying for storage, but customers can’t buy.
Stranded inventory leads to lost sales, storage costs, and lost storage capacity. As an Amazon seller, you can easily track and fix stranded inventory through Seller Central.
Stranded inventory leads to lost sales, storage costs, and lost storage capacity. As an Amazon seller, you can easily track and fix stranded inventory through Seller Central.
Spoilage
Some products like food, supplements, and cosmetics have sell-by or expiration dates. When you hold inventory past its sell-by date, your investments go down the drain.
Tracking products through a system can help you avoid spoilage, allowing you to run promotions or discounts on items at risk of spoiling soon.
Tracking products through a system can help you avoid spoilage, allowing you to run promotions or discounts on items at risk of spoiling soon.
High storage costs
Optimizing storage space can help you lower costs and stock fast-selling items. Not tracking inventory can lead to higher costs for storage, removals, and liquidations. Even if you use a third-party inventory-management system, you still want to track how much inventory you have in storage to avoid incurring unnecessary costs.
Use an inventory system to track info like:
Use an inventory system to track info like:
- What you have in stock
- How your inventory is aging
- Optimum inventory levels
This type of tracking will go far to help you avoid high storage costs.
9 inventory management best practices for ecommerce sellers
Achieve profitability, scalability, and sustainability by improving inventory management for your ecommerce business. Here are some tips to help you run your business smoothly and efficiently.
1. Conduct regular inventory audits
By doing regular audits, you can catch issues before they become an even bigger problem. Regular audits ensure inventory is at the right level.
As a rule of thumb, you should conduct inventory audits at least one to two times a year. If you can audit quarterly, even better.
Cycle counting is a process that requires you to count a small amount of your inventory at a specific time, usually on a set day, without handling the entire stock in one go. It can be a more manageable way to ensure your inventory is accurate and up to date.
As a rule of thumb, you should conduct inventory audits at least one to two times a year. If you can audit quarterly, even better.
Cycle counting is a process that requires you to count a small amount of your inventory at a specific time, usually on a set day, without handling the entire stock in one go. It can be a more manageable way to ensure your inventory is accurate and up to date.
2. Implement an inventory-management system
Having an inventory-management system in place ensures you can fulfill incoming or open orders and increase profits. It helps:
- Track your inventory so you know how much you have and what you need
- Control costs
- Improve delivery speed
- Aid in planning and forecasting
- Reduce time spent on inventory management
There are many software options to choose from. Be sure to select a system that:
- Syncs with your order fulfillment or selling system
- Provides demand forecasting
- Alerts you when items are running low
- Allows quick and easy barcode scanning
- Tracks all relevant product information
Amazon has several inventory-management solutions.
3. Build and maintain relationships with suppliers
Your suppliers are vital stakeholders for your business. And your success can help their business too. Here are a few ways to sustain healthy relationships with suppliers:
- Pay your bills on time.
- Treat your suppliers with respect.
- Communicate frequently and regularly.
- Offer constructive feedback.
- Build goodwill by referring business.
Promote positive interactions with the key players in your supply chain to get the right products on time and anticipate any manufacturing or shipment issues.
4. Sync inventory across multiple online platforms
Multi-channel inventory systems can help scale your business by making it easier to sell across more channels. Tools automatically sync your sales and inventory so you have more time to expand to new selling websites and reach new customers. This approach also helps avoid overselling and underselling across multiple channels.
Amazon’s Multi-Channel Fulfillment (MCF) has an inventory management system, Listing Mirror, that helps prevent these issues by synchronizing inventory levels across multiple channels.
Amazon’s Multi-Channel Fulfillment (MCF) has an inventory management system, Listing Mirror, that helps prevent these issues by synchronizing inventory levels across multiple channels.
5. Automate order fulfillment and tracking
Ecommerce businesses can reduce the risk of errors and improve inventory accuracy with an automated fulfillment system, like FBA, that automatically updates inventory levels in real time, tracks sales and purchases, and generates accurate reports.
6. Manage returns and reverse logistics
How your business handles returns is as important as fulfilling products you’ve sold.
Reverse logistics moves goods from customers back to the seller or manufacturer. Once an item is received, it can include product repairs and maintenance, refurbishing or remanufacturing defective items, or repackaging products.
When managed properly, reverse logistics can help improve customer satisfaction and build customer loyalty, reduce costs by recycling and reusing material, generate revenue, and improve your brand’s reputation. With FBA, you can make reverse logistics easier by outsourcing customer returns to Amazon.
Reverse logistics moves goods from customers back to the seller or manufacturer. Once an item is received, it can include product repairs and maintenance, refurbishing or remanufacturing defective items, or repackaging products.
When managed properly, reverse logistics can help improve customer satisfaction and build customer loyalty, reduce costs by recycling and reusing material, generate revenue, and improve your brand’s reputation. With FBA, you can make reverse logistics easier by outsourcing customer returns to Amazon.
7. Reduce excess inventory and restock popular products
Avoid sunk costs (money that has already been spent and cannot be recovered) by marking down prices or creating special deals to liquidate aging inventory or overstock products.
Stocking popular products and tracking how many days of supply you have can also help your business stay profitable. Monitor sales and gauge past order quantities to plan how much inventory you need throughout the year. Keep enough backup units to ensure you won’t run out of inventory due to supply chain mishaps.
Stocking popular products and tracking how many days of supply you have can also help your business stay profitable. Monitor sales and gauge past order quantities to plan how much inventory you need throughout the year. Keep enough backup units to ensure you won’t run out of inventory due to supply chain mishaps.
8. Plan for seasonal inventory demands
When the holidays roll around, demand can increase. So look back at sales data from previous years to predict what could be popular in the coming season. With sales data, you’ll know which products to stock up on and which ones might not be worth the extra shelf space.
Also, communicate with suppliers early. Let them know what you expect so they can prepare too. The last thing you want is to place an order and find out it’s delayed because your suppliers were surprised.
If you use FBA, it’s a good idea to start early. To avoid any delays, make sure to send in inventory ahead of time. Also talk with your suppliers early to ensure they can handle your increased needs. And remember to keep an eye on inventory levels in Seller Central so you can adjust when needed.
Also, communicate with suppliers early. Let them know what you expect so they can prepare too. The last thing you want is to place an order and find out it’s delayed because your suppliers were surprised.
If you use FBA, it’s a good idea to start early. To avoid any delays, make sure to send in inventory ahead of time. Also talk with your suppliers early to ensure they can handle your increased needs. And remember to keep an eye on inventory levels in Seller Central so you can adjust when needed.
9. Adopt sustainable inventory management practices
Sustainable inventory management is all about reducing waste and using resources wisely. You can start by evaluating current inventory levels and identifying items that don’t sell well. Consider donating or recycling those products instead of throwing them away. This not only clears up space, but helps the environment.
Look for ways to improve your supply chain efficiency. For example, you can work closely with suppliers to get smaller, more frequent shipments instead of large orders that might end up as excess stock.
Using eco-friendly packaging can also make a difference. Think about how every decision in your inventory process can reduce your effect on the planet. Embracing these practices strengthens your business and shows customers that you care about sustainability.
Look for ways to improve your supply chain efficiency. For example, you can work closely with suppliers to get smaller, more frequent shipments instead of large orders that might end up as excess stock.
Using eco-friendly packaging can also make a difference. Think about how every decision in your inventory process can reduce your effect on the planet. Embracing these practices strengthens your business and shows customers that you care about sustainability.
Learn the lingo:
Sunk costs
The phrase “sunk costs” refers to money you have already spent and can’t recover. If stock sits on the shelf for over three months, you may not be able to recover the expenses you’ve incurred in acquiring and storing the item.
“Amazon’s inventory management tools use world-class machine learning algorithms to create customized restock strategies, taking into account current inventory levels, restock preferences, supply chain constraints, and anticipated demand.”
Kevin G.
FBA Inventory Optimization Team
How does Amazon inventory work?
When sellers choose to use FBA, they automatically gain access to Amazon’s machine learning-based inventory-management system. This system uses inputs like the cost of goods sold (COGS), shipment time, and other Amazon data to forecast customer demand and set optimum inventory levels.
Amazon’s inventory management tools can help you manage stock efficiently
For FBA sellers, Amazon offers a suite of inventory-management tools right in Seller Central. These tools help ecommerce businesses manage their FBA inventory efficiently and offer faster order fulfillment.
The Inventory Performance Dashboard in Seller Central sends an alert when stock quantities are running low and provides demand planning and forecasting to suggest recommended inventory levels and shipment timelines. The dashboard displays essential inventory information such as sell-through rates, aging stock alerts, and recommended actions to optimize storage.
The Inventory Performance Dashboard in Seller Central sends an alert when stock quantities are running low and provides demand planning and forecasting to suggest recommended inventory levels and shipment timelines. The dashboard displays essential inventory information such as sell-through rates, aging stock alerts, and recommended actions to optimize storage.
Automatically track how well you manage inventory
Inventory performance is a measure of inventory management and replenishment. The Inventory Performance Index (IPI) is a metric for Amazon sellers that measures how efficiently they manage their FBA inventory—like a credit score for inventory efficiency.
Improve your Inventory Performance Index score to minimize storage costs
Your Inventory Performance Index (IPI) score is based on how well you:
- Replenish popular products
- Maintain optimal inventory levels
- Fix listing problems
Streamline inventory management and reduce costs with FBA
As a high credit score gives you benefits, so does a high inventory score. So keep your IPI score high to lower storage costs and make more profit.
You can access this suite of tools through the Seller Central dashboard or the Seller App on your smartphone.
Along with daily inventory and storage reports, Amazon uses machine learning models to provide data-driven recommendations through features like:
You can access this suite of tools through the Seller Central dashboard or the Seller App on your smartphone.
Along with daily inventory and storage reports, Amazon uses machine learning models to provide data-driven recommendations through features like:
- FBA Restock tool
- Inventory Performance Index (IPI)
- Inventory age report
There is a lot to learn about inventory management, but by starting with these tips and best practices you can reduce your costs, increase customer satisfaction, and keep your ecommerce business running smoothly.
Amazon programs like FBA are also here to help remove the guesswork and provide you with the inventory tools that you need to keep you business healthy.
Amazon programs like FBA are also here to help remove the guesswork and provide you with the inventory tools that you need to keep you business healthy.
Frequently Asked Questions
How do you measure to see if you are successfully managing inventory?
There are several ways to measure your inventory-management efforts. One of the most common methods is looking at your sell-through rate to ensure you’re balancing inventory levels with sales. You can calculate it by dividing the number of units sold by the number of units received.
What’s the difference between order management and inventory management?
Order management refers to how you receive and process customer orders. Inventory management refers to how you manage products through your storage facility or warehouse. Integrating order management and fulfillment management systems and processes can help you run your business smoothly.
What is supply chain management?
Supply chain management is how you manage your process for acquiring or creating products up until the products are sold. It includes managing suppliers, delivery times, inventory levels, and more.
What is FBA inventory management?
FBA inventory management refers to a service within the Fulfillment by Amazon (FBA) program. The program allows sellers to store their products in Amazon’s fulfillment network so we can pick, pack, and ship orders to customers on their behalf. As part of FBA, sellers can access tools for inventory management, like demand forecasting and recommended inventory levels.
What are the differences between inventory management and supply chain management?
Inventory management is all about keeping track of the products you have in stock, making sure you have enough to meet customer demand without having too much left over. Supply chain management is a bigger job. It covers the whole process of making and delivering products, from getting raw materials to sending the final product to customers. Inventory management is one part of supply chain management.
