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An inventory management system (also known as an inventory system) is a method of tracking items across your whole supply chain, from purchase to production to final sales. It determines how you handle inventory management in your company.
Any business that deals with stock will require a system to track and regulate it accurately. You'll be working on an ad hoc basis if you don't have one, and you'll quickly find yourself in situations where your firm is overstocked or understocked.
Inventory management systems tell you how many parts or ingredients you'll need to make or assemble your final product. You may end up with surplus stock, eroding the bottom line, or inadequate stock to meet client demand if you don't have this information.
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