An inventory manager manages a company’s warehouse team and ensures sufficient stock for sales, shipping, or delivery. Their responsibilities involve collaborating with suppliers, training new warehouse staff, and utilizing data and software to manage inventory and reorder stock.
Understanding the responsibilities, skills, and requirements of inventory managers can aid in determining one’s interest in this career. This article provides an in-depth explanation of the role of an inventory manager, outlining the qualifications needed to become one and providing additional information to help you explore this career path.
What is Inventory Management?
Inventory management is a crucial aspect of supply chain management. It includes overseeing the movement of goods from manufacturers to warehouses and points of sale and ensuring detailed record-keeping of new or returned products.
Inventory management is a valuable tool for businesses of all sizes to monitor the movement of their goods. It entails the systematic handling of a company’s stock, including raw materials, components, and finished products, as well as their warehousing and processing.
Using the right inventory management technique ensures the provision of the correct goods at the right time, place, and amount. For instance, inventory control, which is a distinct aspect of inventory management, aims to reduce inventory costs while ensuring timely product delivery to customers.
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Who is an Inventory Manager?
An inventory manager is a professional who oversees the management of businesses’ stock levels. They manage a team responsible for receiving and recording new stock by analyzing suppliers, recording daily deliveries, and evaluating new shipments.
What are the Job Descriptions of an Inventory Manager?
An inventory manager manages their employer’s products, supplies, and materials. They supervise inventory clerks and warehouse staff and collaborate with various departments within the business.
Inventory managers operate across various industries and sizes, specializing in different types of inventory, such as raw materials or finished goods.
Their responsibilities may vary based on their industry and type of inventory management, but they typically involve
- Using computerized inventory monitoring or supply chain software tools to accurately track stock levels
- It is the responsibility of the inventory manager to hire and train inventory clerks and warehouse staff, including delegating tasks and creating schedules for them.
- Taking stock regularly or using cycle counts to determine the available inventory
- Re-ordering additional inventory when stocks are low
- Sourcing and maintaining relationships with suppliers
- Resolving supply and delivery issues and developing suitable solutions.
- Preparing inventory for delivery or shipping to customers.
- They analyze sales data and predict requirements for future inventory.
- They report to upper management regarding stock levels and any related issues.
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Basic Requirements of an Inventory Manager
Employers consider several basic requirements when hiring an inventory manager, such as:
#1. Education
Basically, businesses require inventory managers to possess a bachelor’s degree in inventory management, supply chain management, operations, or business administration. Employers can hire candidates without a degree if they have extensive experience in inventory control and distribution.
College courses in information technology can enhance proficiency in using supply chain and forecasting software. A master’s degree in your chosen discipline may be an advantage, but it is not typically a prerequisite for the role.
#2. Training
Inventory managers typically start their careers in inventory control or distribution roles, gaining familiarity with inventory management and supply chain software through experience in these roles. In these roles, you will learn about picking-packing procedures, warehouse equipment usage, and occupational health and safety in the supply chain.
#3. Certifications
Despite not being mandatory, many employers favor candidates with the Certified in Production and Inventory Management (CPIM) qualification. This certification can be obtained through the Association for Supply Chain Management (ASCM).
To obtain certification, one must pass an examination evaluating their skills in supply chains, strategy, inventory, distribution, operations planning, and other areas. The ASCM offers exam preparation classes in both in-person and online formats, as well as purchasing study materials for those who prefer independent study.
As a certification holder, you can maintain your status through professional development activities and can apply for a recertification exam if your certification becomes inactive.
Skill to Possess as an Inventory Manager
Inventory managers require strong leadership and technical skills to excel in their roles, and businesses often seek candidates with these skills:
#1. Inventory management
Inventory managers employ various techniques, like periodic and perpetual systems, barcode and QR tracking methods, and efficient monitoring, to ensure accurate stock control and timely supply orders.
#2. Supply chain software
Inventory managers utilize monitoring and supply chain software tools to track stock levels, reorder, and predict future needs, enhancing proficiency in daily programs. Proficiency in using these tools can enhance your daily program usage.
#3. Mathematics
Inventory managers use mathematical skills to manage stock levels, adhere to budgets, and create invoices through manual tracking and software usage. Mathematics skills can be utilized to identify and rectify errors in tracking reports. It also assists in planning and forecasting tasks and detecting potential inaccuracies.
#4. Physical fitness
The job of an inventory manager can be quite physically demanding. Inventory managers frequently engage in physical labor, standing and walking between various business departments such as sales, store office, stock room, or warehouse.
Also, physical fitness skills can be used in lifting and moving heavy stock within a warehouse.
#5. Leadership
Inventory managers offer guidance, direction, and coaching to warehouse team members and clerks, often supervising hundreds in larger companies. Effective leadership skills can inspire teams, resolve conflicts, and maintain high workplace morale.
#6. Multitasking
Inventory managers frequently handle multiple tasks simultaneously, including overseeing staff, counting and replenishing inventory, and maintaining communication with suppliers throughout their workdays. Multitasking skills enable efficient and timely completion of various tasks.
#7. Paying Detail Attention
An inventory manager is responsible for maintaining precise stock levels for customers and employees, ensuring that potential supply chain issues are identified and addressed before they escalate into major problems.
#8. Interpersonal Skills
Inventory managers utilize interpersonal skills to build relationships with suppliers, warehouse staff, and professional contacts, thereby securing the best deals on inventory. These skills can enhance your communication abilities with other business departments, like sales or operations.
How to Become an Inventory Manager
This step is crucial for individuals aspiring to become inventory managers:
#1. Earn a degree
An inventory manager typically requires a four-year bachelor’s degree in inventory management, supply chain management, operations, or business administration. Search for schools with programs that align with your career goals. You can also consider completing an internship in a warehouse during your degree in order to become familiar with this work environment.
#2. Acquire work experience
Inventory managers typically start their careers in warehouses as clerks or packers. To meet employers’ requirements, they should gain at least two years of experience.
#3. Acquire CPIM certification
With the CPIM certification, though it’s optional, it can enhance your earning potential and secure a position as an inventory manager. The certification program offers no prerequisites and can be completed online or with a handbook at home.
You can even get this certification while working or during an internship in a warehouse.
#4. Update your resume
Revise your resume to showcase your education, certification, and experience, highlighting skills and achievements. Review job descriptions for inventory manager positions and use keywords to pass applicant tracking systems.
#5. Apply for Inventory manager jobs
Utilize job-search websites to locate inventory manager positions and send resumes and cover letters to businesses. You can consider applying for an inventory manager position if your current employer is hiring, as you may have an advantage due to your familiarity with its supply chain procedures.
Why is Inventory Management Important?
Effective inventory management is crucial for businesses as it helps them maintain a balance between their in- and out-of-stock inventory, leading to increased operational savings.
Overstocking in a business can hinder cash flow, cause budget deficits, and negatively impact profit margins by storing dead stock in storage. Also, insufficient inventory can negatively impact a business’s customer service, potentially leading to lost sales and potential customer dissatisfaction.
An inventory management system assists businesses in achieving optimal efficiency and profitability by balancing under- and overstocking.
What are the Processes in Inventory Management?
The processes in inventory management are complicated, especially for larger organizations, but the fundamentals remain consistent across all types and sizes.
It involves delivering goods to warehouses, storing them in stock areas, and ensuring they are properly stored and managed for the benefit of the organization. Unfinished goods are removed from stock areas and transformed into finished goods, which can be returned to stock areas or shipped directly to customers.
Inventory management uses various data, such as lot numbers, serial numbers, cost, quantity, and process dates, to track goods throughout their movement.
Best Inventory Management Software
The ideal inventory management software should facilitate the efficient tracking of products, tools, and assets from production to sale, either alone or paired with a point-of-sale (POS) system. Note that there are some inventory management software programs that are free. This means that these SaaS tools offer ample functionality completely free of charge.
Here’s a brief description of each inventory management software, including those that are free, to highlight each tool’s best use case
#1. Upkeep
The most effective free inventory management software for manufacturing, UpKeep is inventory control software that streamlines stock management and order fulfillment, providing a centralized inventory count and mobile-optimized web functionality for any mobile device.
UpKeep inventory management software is efficient for e-commerce businesses. It allows automatic updates, notifications, and location management, particularly for multi-location manufacturing companies.
The free plan offers robust asset management, inventory control software, and automatic inventory count updates for product quantities and costs on a mobile-optimized platform. UpKeep integrations are exclusively available on paid plans, and their access is not available on the freemium plan.
#2. Zoho Inventory
For single warehouse operations, we recommend Zoho inventory management software. A cloud-based inventory management tool that streamlines inventory tracking, sales management, and product listing across multiple channels, ensuring a centralized inventory system for online sales
Zoho maintains inventory levels across channels by updating inventory quantity with sales and offers pre-built workflows for routine tasks like purchase orders and shipment tracking. Zoho Inventory’s comprehensive dashboards provide enhanced business visibility, making it easy to track changes in inventory and best-sellers.
The SaaS offers features such as multi-channel selling, which gives access to multi-currency transactions. It also integrates with Shopify, eBay, Stripe, PayPal, Etsy, Salesforce, and Google Shopping to enable businesses to sell products on multiple platforms.
#3. Odoo Inventory
Odoo software, an award-winning inventory management system, is utilized by companies like Toyota, Cox, Hyundai, and Danone across various industries.
It is a flexible, comprehensive inventory management solution that offers a wide range of solutions, including CRM, eCommerce, accounting, inventory, point of sale, and project management. Its robust documentation and integrations make it ideal for those with IT staff but it requires additional technical knowledge.
Odoo Inventory offers features like just-in-time inventory management, real-time tracking, barcode scanning, integrated shipping and receiving, and a mobile app. It also supports integrations with various platforms, including RocketChat, Quickbooks, Google Sheets, WordPress, Slack, Hubstaff, Microsoft SQL, and Zapier.
#4. Stockpile
Stockpile is an online inventory management software designed for small businesses and entrepreneurs, allowing for efficient stock level management across locations and the creation of multiple users with varying permission levels.
The SaaS simplifies inventory management, sales tracking, and returns, offering built-in return handling. It allows unlimited product uploads, multiple locations, manufacturers, and preferences on one account, making it a valuable tool.
Stockpile features include a user-friendly inventory management tool with a comprehensive reporting tool, multiple tutorials, and free support. It supports multiple currencies, allows sales processing, and allows custom notifications for low stock levels.
#5. RightControl
RightControl is a software program designed for small to medium-sized enterprises, offering an integrated solution for managing stock inventory, sales, invoices, customer and supplier contacts, barcode generation, printing, dispatching, and reports.
A robust inventory management system is suitable for small businesses, enabling various stock entry options like unique barcode tracking, batch entry, and bundling from a Bill of Materials. It offers various business versions for eBay users, allowing easy upgrades from Lite to Enterprise as businesses grow.
RightControl features include a comprehensive software marketplace for free add-ons, including eCommerce, project management, and barcode fonts. All add-ons are clearly labeled and come with a free trial before being charged.
#6. Sortly
Sortly is an inventory management software that allows users to add, segment, and track products with an easy-to-use interface compatible with all mobile devices.
Sortly simplifies inventory tracking with automatic low-stock alerts, date-based reminders for short warranties, and custom dashboards. It also allows the creation of custom fields for unique or difficult-to-classify products, making it beneficial for businesses.
The features of Sortly include easy item tracking, customizable alerts, and a mobile app for businesses to manage their inventory efficiently.
#7. ABC Inventory
ABC Inventory is an on-premise inventory system that aids in order, procurement, and inventory management, allowing for unlimited storage of records in its database.
The free SaaS tracks items across multiple warehouses and offers kitting functionality. It offers features like multiple currency support, warehouse and stock movement logs, and automatic creation of serial and lot numbers.
The ABC Inventory offers features like detailed purchase order document generation, automatic purchase order generation, quick price quotation, and a supplier database with suspension and probation warning flags, but lacks integration with other technology stacks.
#8. SalesBinder
SalesBinder is an easy-to-use inventory management software with a free-forever version, offering a user-friendly interface for efficient stock organization. The SaaS offers a comprehensive inventory management platform with features like CRM, invoicing, and an inventory app, allowing businesses to track sales orders, create invoices, and manage customer information.
The features of SalesBinder offer detailed vendor management, tracking of vendor profiles, and inventory management to enhance customer relationship management. It also integrates with Xero, WooCommerce, QuickBooks Commerce, and more through a paid plan with Zapier. However, the free version does not offer any of these integrations.
#9. Inflow Inventory
The InFlow Inventory is a comprehensive inventory software that streamlines business operations by tracking orders and stock levels and managing sales, purchases, and work orders from a single platform. It offers real-time inventory tracking and historical analysis, providing valuable insights for businesses to monitor stock levels and analyze trends over time.
Using InFlow Inventory, users can create product categories, track purchases, manage returns, and maintain sales records. However, simultaneous changes are restricted to read-only access.
InFlow is a mobile app for businesses to scan products and update inventory levels, but it has limited integrations. It also supports multiple locations.
#10. PartKeepr
PartKeepr is an open-source inventory management system that simplifies stock and order tracking by creating a customizable database with images, descriptions, and custom fields.
With the PartKeepr customizable product description platform, users can add or exclude fields, create custom data fields, and use search functionality. It’s open-source, free, and customizable to fit specific business needs with coding knowledge.
In addition, PartKeepr software enables businesses to track inventory levels across multiple locations, generate reports, and provide analytics for data-driven decision-making, enabling efficient inventory management.
The features on PartKeepr include multi-location support for businesses that allow tracking of inventory levels across multiple locations. It also allows user permissions and restricts access to sensitive data. Limited integrations are available.
What Does an Inventory Manager Do?
An inventory manager manages business inventory levels, leading a team to receive and record new stock, analyze suppliers, record daily deliveries, and evaluate new shipments.
What Are the 3 Major Inventory Management Techniques?
Most manufacturers utilize three common inventory management strategies: pull, push, and just-in-time (JIT) strategies.
What other job titles can you call an Inventory Manager?
An inventory manager can transition into various job titles such as salesperson, purchasing manager, supply chain manager, warehouse manager, store manager, sales manager, logistics manager, and customer service representative.
Is inventory management a hard job?
Inventory managers require physical fitness to move heavy stock within a warehouse, standing and walking between departments.
What makes a good inventory manager?
A good inventory manager should possess strong mathematical abilities, multitasking abilities, excellent organizational and communication skills, and meticulous attention to detail.
What skills do you need for an inventory job?
The inventory manager must possess leadership, communication, organizational, logistics, detail, problem-solving, data analysis, interpersonal ability, and team-oriented skills.
What’s the salary of an inventory manager?
Inventory managers earn an average annual salary of $61,982. It can vary depending on the employer, location, and experience. For instance, large businesses may pay higher salaries to inventory managers, and certifications may also enhance their earning potential in this role.
What does QuickBooks online inventory management software do?
Quickbooks Inventory Management Software streamlines inventory management. It enables easy tracking, reordering, and insights on purchases and sales. Also, it allows non-inventory items and bundles, allowing for efficient inventory management.
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