What is a primary challenge related to inventory management?

A primary challenge related to inventory management is the improper tracking of stock levels. Effective inventory management relies heavily on accurate and timely tracking of stock to ensure that an organization maintains the right amount of inventory on hand for operational needs. When stock levels are not properly tracked, several problems can arise, such as overstocking or stockouts. Overstocking leads to increased holding costs and waste, especially for perishable goods, while stockouts can result in lost sales opportunities and disrupt supply chain operations. Thus, implementing robust tracking systems and accurate data reporting is crucial for optimizing inventory levels and enhancing overall logistics efficiency.