The first step of inventory management is typically receiving and inspecting the products after they arrive from the supplier. This involves verifying the quantity, product codes, serial numbers, and checking that the items meet quality standards and are free from damage or defects. Proper inspection ensures that subsequent steps in inventory management proceed smoothly
. Another perspective emphasizes inventory control as the initial step, which involves determining current inventory levels by recording all items in stock, including quantities and locations. This foundational step supports demand forecasting and ordering decisions
. Some sources highlight demand planning and forecasting as the very first step, where businesses analyze customer demand trends and sales data to estimate how much inventory will be needed. Accurate forecasting prevents overstocking or stockouts and guides purchasing decisions
. In summary, the first step can be seen as one of the following, depending on the context and focus of the inventory system:
- Receiving and inspecting incoming inventory from suppliers
- Conducting inventory control by recording existing stock levels
- Performing demand planning and forecasting to anticipate inventory needs
All these steps are foundational and interrelated parts of effective inventory management. However, receiving and inspecting inventory is commonly recognized as the operational starting point once orders arrive, while forecasting and inventory control are crucial preparatory steps for ongoing inventory management.
