Inventory refers to any stock that your company has in terms of goods. It may be raw materials, goods in the process of production or finished products.
Almost every retail business, whether online or offline, has initial troubles with inventory management. They either have too much or too few products in their stock to maximise their business growth. The answer to this conundrum lies in the efficient management of inventory to facilitate a continuous sustainable growth curve.
The primary problem that most business houses face is inaccurate expectations. They either overstock their inventory in the hope that business will pick up or under-stock it because of a shortfall in demand under their expectations.

Both are detrimental to the financial health of a business. In the first scenario, too much cash is tied to the inventory, often leaving other areas of business management severely underfunded. On the other hand, if you under-stock your inventory, you may lose valuable business and customers permanently.
Management of inventory emerges as a crucial aspect of business management which can potentially make or break a business. Every business owner should go through the complete guide of inventory management and take appropriate steps to maximise their business growth.
There are many ways to manage your inventory effectively. The first step is to predict the demand as accurately as possible. Other approaches include the FIFO approach, regular auditing and prioritising the stock according to their economic value and demand.
You may read more about best Inventory Management techniques in detail here.