Why is Inventory Management Important?
You may have often wondered why you even have any inventory at all. Is it not just simpler to ask a supplier to send you products as and when you have some demand for them? The issue, however, lies in the fact that we never know for sure what a customer’s spending pattern is.
For example, it is possible that your manufacturer cannot keep up when your demand peaks. Or your vendor may increase the price of a product you agreed to sell for way lesser.
Having your own inventory helps hedge against the great uncertainty that is consumer behavior. When you buy in bulk, you also have an advantage when it comes to price negotiations. Moreover, you can significantly reduce the time between order and delivery by having your own stock.