Inventory Management
Inventory management is the process of tracking what stock a company has, where it is, and how it moves in and out - whether that’s raw materials, work in progress, or finished goods ready to ship.
The two common approaches
Order-driven inventory management ties stock levels directly to the order flow. Instead of adjusting inventory by hand, you create a purchase order, which puts goods into stock when they arrive, or a sales order, which pulls goods out of stock when they’re shipped. Moving goods between locations happens through a warehouse order, and moving raw materials into production happens through a production order. The stock count updates itself as a byproduct of these orders, rather than through a separate manual step.
Manual inventory management skips the order system entirely - stock is adjusted by hand, often in a spreadsheet. It’s simpler to set up, but it comes with a higher risk of errors and no built-in traceability back to where a specific unit came from or went.
Why order-driven inventory management scales better
As a company grows, the gap between the two approaches widens: more transparency, since anyone can see current stock without asking around, fewer manual errors, and full traceability, since every stock movement is tied to an order and can be traced back to it rather than reconstructed after the fact.
See how EMA’S went from disconnected systems to inventory that stays in sync automatically as purchase and sales orders are created or corrected.
tracezilla is a standard ERP system with order-driven inventory management built in.
Related searches
Receive our newsletter
