The inventory management process can be broken down into 5 stages:

  1. Order and receive inventory.
  2. Organize and store inventory.
  3. Take point of sale orders. 
  4. Transport products to your customer.
  5. Restock inventory ready for the next order.

The four types of inventory are: 

  1. Finished goods
  2. Raw materials
  3. Work in progress  

As a wine shipping business, you will most probably only be working with finished goods.

Inventory visibility is essential for effective inventory management. It means knowing what inventory you have and where they are based in your supply chain, together with a full traceability record for every order and product details. Wine businesses need to have excellent visibility of their inventory to fulfil orders reliably, and maintain a lean inventory.

The ABC inventory management technique that divides inventory into three categories: A, B and C. Items in the A category have the highest value to the business, B category items have lower value, and category C has the lowest value. The ABC system therefore calculates the value of inventory based on their value to the business, based on criteria such as demand and cost.