Inventory Management Process Template

The inventory management process is one of the essential parts of a trading business. Here you will learn everything related to the process and how to manage your business with inventory management.
Retail Inventory Management template

About the Inventory Management Process Template

What is Inventory Management Process (IMP)?

If you have a business based on trading activities, you might know the importance of inventory management. Inventory management is the core and the central part of any trading business. It can be defined as ordering, selling, storing, and using all the raw material and tracking it. This process includes raw materials and everything part of the trading process, such as different components, final products, and warehousing.
Hence, the inventory management process can be a great asset for a company. It allows them to work smoothly and makes it easier to navigate everything.

8 Steps in common Inventory Management Process

The inventory management process is a straightforward method through which you can navigate all the things in your inventory. But if you want to implement this management process in your business, then there are a few straightforward steps that you need to follow.
  1. Product is delivered to your facility. The first step is when the goods or the raw material enters the inventory.
  2. Product is inspected, sorted, and stored. The next step is to sort everything appropriately. You can choose different methods such as cross-docking, drop shipping, and other strategies to store everything.
  3. Inventory levels are monitored. This can be through physical inventory, inventory cycle count, or a perpetual inventory software.
  4. Customer orders are placed. Customer places their orders either online or in person.
  5. Customer orders are approved. The company then approves the orders that the clients place.
  6. Products are taken from stock. After the orders are approved, the company packs the goods and delivers them to the customer.
  7. Inventory levels are updated. Everything is recounted and managed again. You can keep the record manually or digitally.
  8. Stock levels trigger reordering. Now you can reorder all of the raw materials according to your sales. This will keep the stock levels up to date, and you won't have anything missing.

Benefits of Inventory Management

Using the inventory management process in your company can be very beneficial. To run your business smoothly and prevent any problems, you must start practicing the inventory management system. Following are a few benefits of implementing the inventory management system.
  • Improving the accuracy of orders.
    Implementing the inventory management process in your business will give you an idea of how much material and goods are needed. This will prevent any shortage of material and allow you to run your business smoothly.
  • Organization of warehouse.
    Keeping track of everything in the warehouse and keeping everything in its place when you get the delivery helps the organization. Keeping the products in the manner of the best seller also enhances the business's productivity. Hence, this thing directly affects your production rate, and you can make the customer happy and satisfied.
  • Increasing the productivity of the company.
    Another great thing about implementing the inventory management system in your business is increasing efficiency. When you have everything organized, you have all the raw materials to prepare the order; then, you can see the difference. Having everything on hand improves working skills, reduces time, and enhances work quality.
  • Saves time and money.
    You will see a drastic and remarkable change in the time you spend and the money. When you have a good inventory management system, you don't have to recount everything again and again. When you know the amount of stuff in the inventory, you don't have to purchase more goods. Therefore, saving both your money and time.
  • Makes the customer happy and satisfied.
    Lastly, when you have the inventory system in your business, you give the best to the customer. You produce the best products, deliver the orders on time. So, this makes the customers come back and order more from the company.

How to make Inventory Management Process with Templates

After looking at the benefits of the inventory management process, do you also want to use it in your business? But finding the suitable templates to make these inventory templates and maps can be pretty challenging. So EdrawMind is where you can find some great and easy inventory management templates.
Following are some examples that will help you figure out how to make the inventory management templates.
This inventory management process will help you figure out different things in your business. It helps calculate the products' quantity, quality, location, and expiry date.
Here you can see the different parameters of retail inventory management. In this template, you can see 10 essential steps to manage the business.
  • Make a list of all the products and have all the important information about them.
  • Use different methods to have specified products for the stock.
  • Count the stock on regular basis.
  • Combining both the inventory data and the sales data to make the reporting easy.
  • Creating an adequate purchasing process.
  • Establish a plan for promotions and markdowns.
  • Make a proper procedure when the stock enters the inventory.
  • Create a record for the stock when it is returned.
  • Keep a record of the dead stock such as the damaged and incorrect deliveries.
  • Keep a track of the KIPs.
These 10 steps will help you manage a retail inventory and see a massive difference in your business.
Another template that you can use for the inventory management process is the inventory management technique. Here you can see that six different techniques are mentioned. All of these will help you increase your sales and help you enhance your customer service. Following are the six techniques parts of the inventory management process.
  1. Keep a strong relationship with all the people involved in the business.
  2. Ensure proper and consistent planning.
  3. Keep a record of everything and control the inventory.
  4. Do the regular inspection of the inventory.
  5. Proper prediction.
  6. Proper drop shipping.
Hence, this is another fantastic inventory management template that can help you in your business.
MRO Inventory Management Process is another way through which you can maintain and operate your inventory properly. Hence, this template can be very beneficial and will help you with your business. Following are the steps that are mentioned in this inventory management process.
  1. Problems in the management of inventory. This is further categorized into different parts: slow turnover, high paid maintenance, and many other things.
  2. Proper organization of Inventory. The next step of the MRO inventory management process is divided into two steps. The first one is Hybrid, and the other one is Internal.
  3. Best Practices. Lastly, we have different best practices that will benefit you in your business. As mentioned in the diagram above, there are seven critical parts of best practices.


Are you someone who is looking forward to making a template for inventory management? Then EdrawMind is the perfect option for you. EdrawMind can be the easiest and the best template tool for every person in the world. It is easy to use and allows you to customize all templates effortlessly. Lastly, you can get so many types of maps and diagram options to choose from. Hence, EdrawMind can be the ideal tool for making the template for the inventory management process.