What is Inventory Management Systems?

Inventory management systems track a business' inventory levels, orders, sales, and deliveries. They can also be used to create work-orders, receipts, bill of materials and other documents critical to the smooth and efficient running of a company.

Modern-day inventory management systems can be used to track goods and resources throughout their life cycle as they are geo-tagged and tracked remotely. This allows companies to get a view of the moving parts of their supply chain process, identify bottlenecks, and fix issues before they begin to accumulate. Incorporating the latest technology, such as AI, big data, and the Internet of Things (IoT) can allow inventory management systems to automatically reorder goods, ensuring that stocks are kept at optimum levels.

Related Terms

What is Independent Procurement?What is Indirect Materials?What is Indirect Procurement?What is Industry 4.0?What is Insurance Procurement?