Freight Glossary
Inventory Management – Meaning & Examples
The process of ordering, storing, tracking, and controlling inventory levels.
- Related terms
- stock management, inventory control, stock control
Inventory management involves overseeing the flow of goods from manufacturers through warehouses to point of sale. It includes determining what to order, when to order, how much to order, and where to store inventory. Key concepts include safety stock, reorder points, economic order quantity (EOQ), and ABC analysis. Good inventory management balances carrying costs against stockout risks while meeting customer demand.
Inventory Management examples
- Using inventory management software, a retailer maintains 2 weeks of safety stock and auto-reorders at defined thresholds.
How Inventory Management is used in freight operations
Inventory Management appears in quotations, bookings, shipping documents, and tracking updates. Confirm how it applies to your shipment with your carrier, forwarder, or customs representative, because practice can differ by country and contract.
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Frequently asked questions
What is Inventory Management?
The process of ordering, storing, tracking, and controlling inventory levels.
What is an example of Inventory Management?
Using inventory management software, a retailer maintains 2 weeks of safety stock and auto-reorders at defined thresholds.