Inventory Manager Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an inventory manager. Feel free to use our inventory manager job description template to produce your own. We also provide you with information about the salary you can earn as an inventory manager.
Who is an Inventory Manager?
Inventory management is a function of supply chain management that entails monitoring the flow of goods from manufacturers to warehouses and finally to the point of sale. Inventory management is critical for maintaining detailed records of new and returned products as they enter or exit the warehouse or point of sale.
While inventory management processes can become more complex in larger organizations, the fundamental process remains the same: goods are received in the warehouse and placed on shelves or in stock areas; they are then moved to production facilities where they are transformed into finished goods and then shipped directly to customers. In smaller businesses, goods received directly from the manufacturer may be placed in the stock area. Wholesale distributors deal in finished products rather than raw materials.
Inventory management entails the collection of a variety of different types of data to keep track of the goods, including the number of goods, the cost of goods, serial numbers, lot numbers, and dates.
When warehouses are not managed properly, mis-picks can occur as a result of disorganized shelves, incorrect paper pick lists, or a cluttered warehouse. Mis-shipments, in turn, are the result of incorrect selections at the start of the process. When businesses place orders manually and do not have a complete picture of their inventory, they cannot forecast inventory requirements accurately. This ultimately results in out-of-stocks and excess inventory.
These errors harm an organization’s profitability, as they waste both money and employee time correcting errors. Additionally, because such errors reflect poorly on the company, they can result in negative reviews or erode customer loyalty.
An inventory manager is in charge of a company’s goods, materials, products, or parts. Inventory may be used internally or may include goods sold or rented to customers. Typically, the inventory manager collaborates with other departments and supervises one or more inventory clerks. She may work in the public or private sector for a large or small company.
Inventory control efficiency is typically critical to a business’s success. Typically, the inventory manager is responsible for monitoring inventory levels and placing orders for additional merchandise as needed to meet the needs of her company or its customers. Her ability to assess current needs and forecast future requirements is frequently critical to her inventory control effectiveness.
Depending on the volume of inventory and the nature of the business, an inventory manager may utilize a variety of different methods for stock management. Certain businesses that deal in large volumes of components and parts conduct cycle counts regularly. This practice entails counting various components of the inventory to ensure that each component is inventoried at least once during a specified period, typically six months or a year. Popular items are inventoried more frequently than slower-moving items, with only a few items inventoried daily.
When inventory is small or when demand for it varies significantly and frequently, the inventory manager typically monitors it manually or via a computerized inventory tracking system. She typically maintains a specific inventory level for each part or product in stock and is alerted to reorder when it reaches that level. Typically, a system for tracking backorders and returns is integrated into the program’s mainframe.
To ensure that the highest profit margins are maintained and that production and sales do not suffer interruptions, an inventory manager typically keeps track of the costs associated with storing slow-moving inventory. She compares it frequently to the cost of ordering goods on a need-to-know basis. If the latter option proves to be more profitable, the manager frequently makes adjustments to her inventory ordering and storage systems to boost revenue.
Typically, success in this position requires an uncanny ability to pay attention to detail and exemplary organizational abilities. The capability of an inventory manager to apply analytical skills to inventory control is generally regarded as an asset. Knowledge of computerized tracking systems is frequently considered advantageous for individuals in this position.
A bachelor’s degree in mathematics or inventory management is typically required for an inventory manager position. Candidates for this position are generally preferred to have credentials and certifications from accredited inventory control associations. For aspiring inventory managers, prior work experience in the field of inventory control is advantageous.
Inventory Manager Job Description
Below are the inventory manager job description examples you can use to develop your resume or write an inventory manager job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of an inventory manager include the following:
- Creating and implementing a system for tracking inventory to optimize inventory control procedures.
- Determining supply and raw material shortages by examining supply and raw material levels.
- Daily deliveries and shipments should be documented to keep inventory current.
- Producing comprehensive reports on inventory operations, stock levels, and adjustments.
- Evaluating new inventory to ensure it is shipped-ready.
- Conducting daily analysis to identify potential inventory issues.
- Purchasing additional supplies to avoid inefficiencies or an excess of excess.
- Analyzing various suppliers to identify the most cost-effective options.
- Counting or utilizing automated inventory monitoring or supply chain management software to maintain accurate stock levels
- Conducting routine cycle counts or stocktakes to ascertain inventory availability
- Ordering additional inventory when stock levels fall below a certain level
- Sourcing and maintaining relationships with suppliers, including resolving supply and delivery issues
- Recruiting and training inventory clerks and warehouse personnel, as well as delegating tasks and creating rosters for these employees.
- Analyzing sales data and forecasting future inventory requirements
Additional critical responsibilities include the following: Assurance Management
- Maintaining stock levels
Assuring that the organization maintains optimal stock levels is a critical responsibility of an inventory manager. He keeps an eye on stock levels and places purchase orders when they fall below desired levels. Additionally, he collaborates with the rest of the management team to ensure that the organization maintains an adequate stock level during peak customer periods, such as sales and holidays. It is the inventory manager’s responsibility to ensure the quality of goods delivered to the organization and to ensure that they remain in excellent condition before being shipped to the customer.
- Inventory Movements
The inventory manager is in charge of directing the flow of goods into, through, and out of the storage facilities of the organization. He collaborates with marketing, customer relations, and warehousing to ensure that the customer’s order is properly filled with the exact goods requested. If the marketing department is conducting a promotion, the inventory manager should be informed so that promotional items can be included in the order. In some instances, the inventory manager serves as the purchasing manager as well. As such, he is accountable for establishing and maintaining relationships with suppliers to ensure supply chain efficiency.
- Documentation
The inventory manager is responsible for preparing and ensuring the accuracy of inventory documentation. He keeps track of the quality, quantity, type, style, and any other characteristics of the goods held in inventory by the organization to provide the rest of the management team with a clear picture of what the organization has and needs. Additionally, the manager must monitor inventory movement to identify slow-moving and dead stock. The inventory manager’s responsibility is to ensure the integrity of the stock management systems to prevent pilferage, theft, fraud, and other activities that harm the organization’s operations. The documentation can be used to develop marketing and procurement policies and strategies aimed at increasing stock turnover.
- Manages Staff
The manager is accountable for the inventory department’s staff. He has the final say over the hiring of inventory planners, quality assurance officers, and other departmental staff. He is also accountable for educating them about the organization’s ethics, safety standards, return policies, sales promotions, workflow processes, and inventory handling practices. Additionally, the manager is responsible for handling grievances, complaints, and disciplinary actions involving his department.
Qualifications
Education
Inventory managers are typically required to hold a bachelor’s degree in inventory management, supply chain management, operations, or business administration. Certain employers will hire candidates without a degree, but they must have extensive experience in inventory control and distribution. Certain inventory managers at the upper levels may pursue a master’s degree in their chosen field. Additionally, information technology courses can assist inventory managers in adapting to the growing importance of computers in their field.
Training
Employers typically require inventory managers to have prior experience in inventory control or distribution before being promoted to this senior position. As an inventory control clerk or warehouse worker, aspiring inventory managers can gain familiarity with inventory management and supply chain software, picking-packing procedures, warehouse equipment use, and supply chain occupational health and safety procedures. Employers typically require more on-the-job training for applicants without a degree than for candidates with a preferred bachelor’s degree.
Certifications
While certification is not mandatory, many employers prefer candidates who have earned the Certified in Production and Inventory Management (CPIM) credential. The Association for Operations Management offers the CPIM certification, which is open to all interested parties regardless of their education or experience.
Inventory managers must also participate in professional development activities to maintain their certification. Recertification examinations are also available for inventory managers whose certifications have lapsed.
Essential Skills
- Multitasking skills
Inventory managers frequently have to juggle multiple tasks simultaneously, such as supervising staff, counting and replenishing inventory, and communicating with suppliers. Multitasking abilities ensure that all of these responsibilities are completed effectively and on time.
- Leadership Skills
Inventory managers serve as a source of leadership for warehouse employees and inventory clerks. A good inventory manager should be able to motivate their staff, resolve employee conflicts, and maintain a positive work environment.
- Computer literacy
The majority of inventory managers use supply chain software to monitor stock levels and determine when to reorder. Forecasting tools can also assist them in forecasting future inventory requirements. Computer literacy can assist inventory managers in becoming familiar with the programs they use daily.
- Mathematics
Numerous businesses require inventory managers to use their mathematics skills to manually or electronically track stock levels. When tracking reports appear to be incorrect, inventory managers can use their mathematics skills to detect and correct errors. Mathematical abilities also assist inventory managers in their planning and forecasting responsibilities.
- Detail-oriented
The inventory manager is accountable for maintaining the appropriate stock levels for a business’s customers and employees.
- Interpersonal skills
Inventory managers rely on their interpersonal skills when dealing with suppliers, warehouse employees, other department members, and professional contacts. Inventory managers should be approachable to communicate effectively within the organization and secure the best possible deals on inventory.
- Fitness for physical activity
Physical labor can be strenuous when working as an inventory manager. These employees rarely sit still and spend a significant amount of time lifting inventory and moving between departments within the business.
How to Become an Inventory Manager
A person interested in becoming an inventory manager should generally have excellent communication, organizational, and computer skills. While the specific education and training requirements for inventory managers vary, the majority of professionals hold a bachelor’s degree and have prior experience in related fields.
Individuals interested in inventory management should research the job’s responsibilities to ensure that they are a good fit. Professionals must have superior math and reasoning skills to conduct accurate inventories, calculate the costs of new shipments, and determine when to order more or less of a particular item. They frequently spend considerable time on computers, creating electronic spreadsheets and filling out purchase orders. Inventory managers rely on their communication skills as well when dealing with suppliers over the phone and with employees and customers in person.
A business administration associate’s or bachelor’s degree can be extremely beneficial for someone interested in becoming an inventory manager. As a business student, you will learn how businesses track sales, determine optimal inventory levels and coordinate with shipping companies. This type of knowledge is critical in managerial positions. Near the conclusion of a degree program, a student can begin browsing online job search sites, perusing newspaper classified ads, and utilizing career placement resources offered by his or her school to locate openings.
Certain employers place a higher premium on professional experience than on academic credentials. A person who has worked as a store clerk or warehouse associate already possesses a good deal of the necessary skills to succeed as an inventory manager. Indeed, many businesses prefer to promote existing employees who are already familiar with procedures to inventory management positions rather than hire external assistance.
Numerous countries offer voluntary training courses and certification exams that can help prospective inventory managers further develop their credentials. The Association for Operations Management, for example, in the United States, offers test takers the opportunity to become Certified Production and Inventory Managers (CPIM). Individuals with CPIM credentials or a comparable designation in another country typically have numerous opportunities to work.
Where to Work as an Inventory Manager
Inventory managers work in a variety of industries, from retail to manufacturing. The majority of inventory managers work a standard 40-hour workweek. However, some inventory managers, particularly those employed in retail environments, may be required to work weekends and late nights to adhere to store hours.
Inventory Manager Salary Scale
The average annual salary for an Inventory Manager in the United States is $60,422 per year.
