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good business requires good organization inventory management is a key component of supply chain management and necessary for any business involved in buying or selling products inventory management supervises the flow of goods for manufacturers to warehouses to the point of sale keeping a detailed record of each new or returned product is key it can be a very complex process especially for large organizations but the basics are the same regardless of the business size or type first goods are ordered through the purchasing department then goods are delivered to a warehouse usually in raw materials and placed in the stock areas then goods are pulled from stock and move to the production facilities to be made into finished products finished goods are returned to the stock areas and finally products are shipped out to the customer through the sales department inventory management uses a variety of data to keep track of the goods as they move throughout the process including lot numbers se
