What Is Inventory Management System (IMS)?
The inventory management system (IMS) is the monitoring of inventory with the help of technology. It undertakes several activities such as tracking inventory, warehouse management, distribution, raw material supplies, delivery management, and many more. The inventory management system helps business owners align all their activities in one place.
Significance of Inventory Management System (IMS) in E-commerce Logistics
The inventory management system (IMS) helps companies to identify which and how much inventory to order at a given time. It keeps your supply chain in the loop. Here are some of the major significances of IMS:-
- It helps in order management and keeps you updated with the shipment and delivery
- It presents you with a comprehensive and detailed report of your stocks
- Business owners can also sync their multiple warehouses in one place
- It also reduces overstocking and avoids out of stock situations.
How Inventory Management System (IMS) Works
The inventory management systems work in the following way:
- Prioritizes inventory
- Track product information
- Audit inventory
- Analyze supplier performance
- Tracks sales
- Reminds restocking
Use Case With Inventory Management System (IMS)
Suppose you have to track the supply of raw materials. Instead of going through all the data one by one, you can have IMS, where everything is labeled and organized so that entrepreneurs can find detailed information easily on their system.