Inventory includes all physical items that you offer for sale. In other words, it's the amount of products that you own and wish to sell through your company. Inventory management is the process of storing and tracking all product stocks to meet customer demand quickly and efficiently.
An effective inventory management strategy allows you to create a transparent and comprehensible cost overview. Inventory is an investment. Confusing inventory management can cost you money and result in dissatisfied customers.
You may lose track of spoiled or unsellable products, or incur high storage costs. Or, even worse, end up with exhausted inventories and unfulfilled customer orders. What's more, storage fees and storage costs can reduce your profitability, which can have a positive or negative impact on your return on investment (ROI).