Question

What makes inventory management so tricky?

Answer 1

Inventory management

Inventory management means stocking of goods in an organization. It can either be raw materials or finished products to be sold.

Challenges or tricks involved in Inventory Management are:

1. The inventory demand needs to be monitored at regular intervals in order to handle the manufacturing effectively. Hence focusing on inventory control becomes challenging and tricky for logistic service providers. This in turn helps to minimize the cost and at the same time increase their margin of profitability.

2. Order processing is the process which starts from order placement and important steps in order processing would be picking, sorting, tracking and shipping. The order picking or the order preparation is the first step followed by sorting the numbers, cash, and then finally on tracking the delivery etc is verified. This becomes tricky in inventory management

3. Warehouse is one of the important logistic activities is choice and maintenance of warehouse. An organization manufacturing unit might be at one point but its distribution would be all across the world and hence warehousing comes into picture. Warehousing should always be close by to dealers or distribute place which will facilitate deliver of goods. Hence this come as a challenge for inventory management