Inventory Management

What Is Inventory Management?

September 22, 2020 • 3 min read

If your business tracks what it buys and counts what it stocks, then it’s already practicing a little bit of inventory management. In this article, we’ll dive into the basics of what inventory management really is, how you can easily implement it, and how simple tools like inventory management software can help you save time, money, and stress. 

What is inventory management?

Inventory management is the process of ordering, organizing, storing, and utilizing your business’s inventory. Whether your business stocks raw materials or finished goods, inventory management is a key component of keeping your company running smoothly. 

There are several systems you can use to practice inventory management. Pen and paper, an inventory spreadsheet, and inventory management software are the most popular choices. No matter what system you select to manage your inventory, the key goals of stock management are the same:

  • Keep track of your inventory
  • Know what you’ve got in stock, how much and where
  • Understand what items are used most and are most profitable
  • Understand what items sit on the shelves or don’t generate much revenue
  • Help you practice inventory control

If your business stocks more than just a dozen or so things, it can be a challenge to keep track of everything using a sheet of paper or an Excel spreadsheet. Many businesses turn to inventory management software to help them get a handle on inventory quickly and efficiently. 

Practice inventory management by getting organized

In order to truly master inventory management basics, you’ll have to start with a little bit of old-fashioned cleaning. Organize your stockrooms! Have a clear idea of what goes where, and label everything. (Create custom QR codes and barcodes for items that don’t already have them. You can do this easily using your Sortly app.)

Pro tip: While you organize, digitize your inventory! There’s no reason to do the same work twice. Start adding each item to your inventory management software while you move things around. Remember to set up barcode and QR code scanning so you can quickly access the items in your digital inventory later. 

The most important part of inventory management is consistency. Using an inventory app with key features like low-stock alert reminders and barcode scanning helps many people stay on top of all their stuff. Find a system that works for you and stick with it. 

About inventory management software

Inventory is used on smartphones, a desktop computer and a tablet.

The easiest way to keep track of inventory is using inventory management software. By using cutting-edge technology to maintain your stockroom, you’ll always have an up-to-date, digital inventory list. 

Inventory management software helps track inventory levels, location, and tons of other key details. Any type of information you’d store on an inventory list, you can store in inventory management software. Plus, inventory management software can easily maintain information that doesn’t fit nicely into a spreadsheet or onto a sheet of paper: barcodes, QR codes, receipts, purchase orders, and, of course, pictures of items themselves.

Inventory management software can be very, very expensive and require cumbersome equipment. But new, modern inventory apps have made the features and benefits of inventory management software available to everybody, at free or very low prices. Sortly’s top-rated inventory app offers forever free versions and paid plans that begin at $39 a month. No equipment is required, either. You can use your phone to scan barcodes and QR codes! Want to improve your inventory management strategy today? Try Sortly free!