An inventory management system is a software tool that helps businesses track their products and supplies. It allows companies to monitor stock levels, manage orders, and forecast future inventory needs. By using these systems, businesses can reduce excess stock and avoid running out of popular items, leading to better customer satisfaction. These systems often integrate with other business tools, such as accounting software and e-commerce platforms, to streamline operations. Features may include barcode scanning, real-time inventory updates, and reporting capabilities. Overall, an effective inventory management system is essential for maintaining efficiency and profitability in any business that sells products.