What is the Importance of Inventory Management?

Inventory management is a part of working capital management. Inventory management plays major role in reducing capital investment in business.

Inventory management helps in reducing cost and stockouts as well as overstocking.

Benefits of inventory management:

1. Cost reduction
2. improved cash flow as turnover time is reduced
3. enhanced customer satisfaction with timely delivery of material without stockouts
4. Risk mitigation related to over stocking
5. Helps in decision making