{"id":3177,"date":"2023-09-28T16:46:57","date_gmt":"2023-09-28T11:16:57","guid":{"rendered":"https:\/\/www.gettogetherfinance.com\/blog\/?p=3177"},"modified":"2025-10-13T17:13:55","modified_gmt":"2025-10-13T11:43:55","slug":"inventory-management","status":"publish","type":"post","link":"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/","title":{"rendered":"Inventory Management Comprehensive Guide: Your All-in-One Resource"},"content":{"rendered":"\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/inventory-management.webp\" alt=\"inventory management\" class=\"wp-image-3178\"\/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_78 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Overview\" >Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#What_is_Inventory_Management\" >What is Inventory Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Definition_of_Inventory_Management\" >Definition of Inventory Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#BenefitImportance_of_Inventory_Management\" >Benefit\/Importance of Inventory Management<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#1_Avoiding_Overstock\" >1. Avoiding Overstock:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#2_Preventing_Stock_OutsStock_Aging\" >2. Preventing Stock Outs\/Stock Aging:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#3_Saving_Money\" >3. Saving Money:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#4_Efficient_Operations\" >4. Efficient Operations:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#5_Happy_Customers\" >5. Happy Customers:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#6_Reducing_Wastage\" >6. Reducing Wastage:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Accounting_for_Inventory_Management\" >Accounting for Inventory Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Inventory_Management_Process\" >Inventory Management Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Inventory_Management_Systems\" >Inventory Management Systems<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Example_of_Inventory_Management\" >Example of Inventory Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Why_You_Need_an_Inventory_System\" >Why You Need an Inventory System:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Periodic_vs_Perpetual_Inventory_Systems\" >Periodic vs. Perpetual Inventory Systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Inventory_Management_Methods_Techniques\" >Inventory Management Methods &#038; Techniques<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#What_is_Inventory_Control\" >What is Inventory Control?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Inventory_Management_vs_Inventory_Control\" >Inventory Management v\/s Inventory Control<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Inventory_Management_Red_Flags\" >Inventory Management Red Flags<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Best_Practices_of_Inventory_Management\" >Best Practices of Inventory Management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Useful_Inventory_Management_Formula\" >Useful Inventory Management Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Tim_Cook_on_Inventory_Management_at_Apple\" >Tim Cook on Inventory Management at Apple<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#The_Bottom_Line\" >The Bottom Line<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Q1_What_is_aging_inventory_and_why_is_it_important\" >Q1. What is aging inventory and why is it important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Q2_What_are_the_strategies_that_can_be_used_to_manage_aging_inventory\" >Q2. What are the strategies that can be used to manage aging inventory?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/inventory-management\/#Q3_What_are_some_effective_inventory_liquidation_strategies\" >Q3. What are some effective inventory liquidation strategies?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview\"><\/span>Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let\u2019s talk about inventory management! We\u2019ve all had moments when we wondered how companies always have their products in stock, whether it\u2019s in their stores or online? When it comes to the business world, one thing that we can\u2019t ignore is the importance of a good inventory management system.\u00a0<\/p>\n\n\n\n<p>Just like a superhero acts behind the scenes, good management ensures that companies don\u2019t end up with old and dusty products, while also saving them money, time, and storage space. Sometimes, people mix up the terms \u201cinventory management\u201d and \u201cinventory control,\u201d but in this blog, we\u2019re here to clear up all those confusions with this blog.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Inventory_Management\"><\/span>What is Inventory Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Inventory management is like the magic wand that companies use to make sure they always have the right amount of products\/goods they need. Whether it\u2019s toys, gadgets, clothes, or even pizzas in a restaurant, inventory management helps companies keep track of them, ensuring they are never out of stock or never wasting the available stock. It\u2019s all about knowing how much goods they have, when to order more, and when to sell some more.\u00a0<\/p>\n\n\n\n<p>Assume it as a well-organized treasure box, where each item is carefully counted and managed. This way, companies can avoid having too much or too little of something, which can be bad for business. It is the art of keeping a company\u2019s stuff in check so that everything runs smoothly, without wasting the resource.<\/p>\n\n\n\n<p><strong>Interesting Fact<\/strong>: \u201cDid you know that in 2015, businesses worldwide lost a whopping $470 billion due to overstocking and over $600 billion because of understocking? It\u2019s like trying to guess the weather using an old umbrella \u2013 sometimes, it just doesn\u2019t work!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Inventory_Management\"><\/span>Definition of Inventory Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let\u2019s take a typical definition! Inventory management is a process of overseeing, managing, and controlling a company\u2019s stock of goods and materials (inventory). It is a very crucial part of supply chain management that includes keeping track of inventory levels, raw material, finishing product, monitoring in and out movement of items, and taking strategic decisions about warehousing, ordering, and using existing stock.\u00a0<\/p>\n\n\n\n<p>The key goal of inventory management is to keep the right amount of inventory and meet customer demand while preventing aging stock, overstock circumstances.\u00a0<\/p>\n\n\n\n<p><strong>Key Notes<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Inventory management includes administering everything from the scratch, like raw materials, to the final finished products.<br><\/li><li>Its goal is to make sure you don\u2019t have too much or too little stuff; it\u2019s like finding the perfect balance.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"BenefitImportance_of_Inventory_Management\"><\/span>Benefit\/Importance of Inventory Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/benefits-of-inventory-management-scaled.webp\" alt=\"benefits of inventory management\" class=\"wp-image-3180\"\/><\/figure>\n\n\n\n<p>As said before, inventory management is like having a superhero for your business. The benefit of inventory management goes beyond saving the funds, it extends to saving of time, resources, and much more. Here\u2019s why inventory management is important:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Avoiding_Overstock\"><\/span>1. Avoiding Overstock:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It helps you prevent having too much stuff on hand. Imagine if you had a closet overflowing with clothes you never wear \u2013 that\u2019s what overstock is like for a business. It ties up money and space.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Preventing_Stock_OutsStock_Aging\"><\/span>2. Preventing Stock Outs\/Stock Aging:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On the flip side, inventory management makes sure you don\u2019t run out of things when customers want them. Think of it as always having your favorite snacks available when you\u2019re hungry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Saving_Money\"><\/span>3. Saving Money:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It helps in using your money wisely. You don\u2019t want to spend all your allowance on toys and have nothing left for ice cream, right? Businesses want to spend just enough to meet demand without wasting money.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Efficient_Operations\"><\/span>4. Efficient Operations:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It keeps things running smoothly. Picture a kitchen where the chef knows exactly what ingredients he has in his hand \u2013 this will make cooking much faster and efficient.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Happy_Customers\"><\/span>5. Happy Customers:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you know what your customers want and when they want, they are happy. It\u2019s like when you go to a car store that has all of your favorite cars in stock, you will end up leaving the store with a big smile.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Reducing_Wastage\"><\/span>6. Reducing Wastage:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Inventory management helps reduce waste. Imagine if a grocery store didn\u2019t check its veggies, and they all went bad \u2013 that\u2019s a lot of wasted food and money.<\/p>\n\n\n\n<p>So, in simple terms, inventory management is just like having a wise wizard who makes sure you have \u2013 not too much, not too little \u2013 just the right amount of everything to keep your business strong and customers happy.<br><br><strong>Interesting Fact<\/strong>: Glossier, the beauty brand, started in 2014 and sold heaps of stuff in just three months. To avoid running out, they got some inventory experts onboard. Now, they work closely with suppliers to keep things running smoothly and make more money.<\/p>\n\n\n\n<p><strong>Also Read<\/strong>: <a href=\"https:\/\/www.gettogetherfinance.com\/blog\/company-valuation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Company Valuation<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accounting_for_Inventory_Management\"><\/span>Accounting for Inventory Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Inventory is like a company\u2019s stuff that they want to sell soon, usually within a year. But before they can show it on their financial papers, they have to count or measure it. Companies use inventory management systems to keep an eye on how much stuff they have in real-time. But there are different kinds of inventory, like:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Raw Material<\/strong>: This is like the ingredients a chef uses to cook a delicious meal. Companies use raw materials to manufacture their products. For a bakery, it\u2019s the flour, eggs, and sugar. They keep track of these ingredients in their accounting to know how much they have and how much they need to make their stuff.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Work-In-Process<\/strong>: Picture this \u2013 a chef in the middle of preparing a dish. That\u2019s work-in-process inventory. Of course this dish is not fully cooked yet, but it\u2019s getting prepared. Companies watch WIP to know the amount of work and money it will take before producing the final product.\u00a0<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Finished Goods<\/strong>: Think of this as the fully cooked, ready-to-eat meal. Finished goods are the products that are all set to be sold to customers. Companies count these items in their accounting to know how many they have and when they can sell them.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Merchandise<\/strong>: This is like the goodies you see on store shelves. It\u2019s ready-made stuff that stores buy and sell directly to customers. In the field of accounting, stores need to know how much their production cost and how much they have on hand.<\/li><\/ul>\n\n\n\n<p>Simply put, companies use accounting to keep track of these different kinds of stuff they have, making sure they know what\u2019s ready to sell, what\u2019s still being made, and what ingredients they\u2019ve got for their products. It\u2019s like keeping a grocery list so they never run out of what they need to run their business.<br><br><strong>Extra Tip<\/strong>: IKEA, the worldwide retail giant, has a smart way to handle their stock. They set rules for when to order more stuff \u2013 like, \u2018get more chairs when we\u2019re down to 10\u2019 and \u2018don\u2019t order more than 50 at once.\u2019 They use fancy software to keep track of what\u2019s selling. This helps them stay ahead in a crowded market<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inventory_Management_Process\"><\/span>Inventory Management Process<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/inventory-management-process-scaled.webp\" alt=\"inventory management process\" class=\"wp-image-3181\"\/><\/figure>\n\n\n\n<p>The process of inventory management is just like well-orchestrated dance, keeping a company\u2019s goods in perfect sync. Let\u2019s break it down step-by-step:<\/p>\n\n\n\n<p><strong>1. Purchasing<\/strong>: The area where it all begins. Companies buy the stock of products or raw material to create or restock their inventory. It\u2019s like going shopping for ingredients before cooking a meal.\u00a0<\/p>\n\n\n\n<p><strong>2. Production<\/strong>: Well! The process of making raw material or ingredients into the final result is production. In this, sewing clothes, assembling gadgets, or baking cakes. Think of it as the cooking part of the meal prep.\u00a0<\/p>\n\n\n\n<p><strong>3. Stock Control<\/strong>: Consider this as the heart of inventory management. Stock control is like putting together your toy collection, ensuring the right placement of everything. Just like this, companies also keep a track of what they have, how much they have, and where it is.<\/p>\n\n\n\n<p><strong>4. Order Management<\/strong>: Knowing about your company\u2019s stock when customers need or buy something is order management. They check their inventory to see if all the orders can be fulfilled. It\u2019s like taking orders at a restaurant.\u00a0<\/p>\n\n\n\n<p><strong>5. Reporting<\/strong>: Just like checking your school grades at the end of the year, companies look at their reports to see how their inventory is performing. It helps them make smarter decisions about purchasing, production, and stock control.\u00a0<\/p>\n\n\n\n<p>Inventory management is a perfectly and carefully choreographed dance routine making sure everything runs smoothly. Remember, it\u2019s all about keeping the right stuff at the right time to keep everyone satisfied.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inventory_Management_Systems\"><\/span>Inventory Management Systems<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>An inventory management system is like a superhero tool for companies. It helps them keep tabs on their stuff as it travels from shopping and cooking to serving it on a plate, which is basically their way of managing inventory.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_of_Inventory_Management\"><\/span>Example of Inventory Management<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Shiva kicks off his food hamper business with a twist. He teams up with different suppliers who provide him with bulk quantities of food. But here\u2019s the kicker: some of those goodies need to be divided and bundled into his signature hampers.<\/p>\n\n\n\n<p>To keep things running smoothly, Shiva relies on his trusty Excel spreadsheet. It\u2019s his go-to tool whenever he orders more supplies, assembles a hamper, or seals a deal with a customer. This spreadsheet is his inventory wizard, helping him keep tabs on his stock levels, track those pesky expiration dates, and figure out just how many hampers he can whip up. Shiva\u2019s business success? You guessed it \u2013 it\u2019s all thanks to his trusty spreadsheet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_You_Need_an_Inventory_System\"><\/span>Why You Need an Inventory System:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To ensure that the company has just enough stock and not too much or too little. Without a good system, things can get messy \u2013 they might end up with too many carrots or not enough potatoes for their stew. The system helps them know exactly what they need to create the perfect dish and keep everything in perfect harmony. It\u2019s like having a secret recipe for success in business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Periodic_vs_Perpetual_Inventory_Systems\"><\/span>Periodic vs. Perpetual Inventory Systems<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Periodic System<\/strong>: This system relies on doing regular inventory checks, like counting how many apples are left in the pantry every few months. Some popular tools for this are ERP, QuickBooks, Shopify, and Xero.<\/p>\n\n\n\n<p><strong>Perpetual System<\/strong>: This one is more real-time. It constantly keeps track of how things are coming in, going out, and getting used. It\u2019s like always knowing how many cookies are left in the jar without having to count them every time. And when it comes to this system, LIFO ( Last-in-First-Out ) is a term you might come across.<\/p>\n\n\n\n<p>So, whether it\u2019s like counting your ingredients or magically knowing when to restock your pantry, the right inventory system is like having a secret recipe for business success. You can check out more about it here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inventory_Management_Methods_Techniques\"><\/span>Inventory Management Methods &#038; Techniques<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/inventory-management-methods-and-techniques-scaled.webp\" alt=\"inventory management methods and techniques\" class=\"wp-image-3182\"\/><\/figure>\n\n\n\n<p>When it comes to managing their stuff, companies have some cool methods up their sleeves. Let\u2019s check them out in a simple way:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Just-in-time (JIT)<\/strong>: Imagine ordering your school books just before classes start. That\u2019s what JIT is like. Companies get or make things right when they need them, so there\u2019s no extra clutter in their storage rooms. It\u2019s efficient, like when your mom buys groceries right before making dinner. Initially originated in Japan in the 1960s and 1970s with Toyota Motor\u2019s support, the technique allows companies to save waste and money significantly.\u00a0<br><\/li><li><strong>Economic Order Quantity (EOQ)<\/strong>: EOQ is about finding the perfect amount to order. Think of it as buying just enough chocolates for a party, so you don\u2019t run out, but you also don\u2019t have too many leftovers that get stale. The method focuses on producing enough stock and including holding and setup costs to reduce the waste amount.\u00a0<br><\/li><li><strong>Days Sales of Inventory (DSI)<\/strong>: DSI tells you how fast things are flying off the shelves. It\u2019s like knowing how quickly your favorite video game sells out in the store. Companies use this info to plan better. This method is also called the average age of inventory, days in inventory (DII), days inventory outstanding (DIO), and days sales in inventories and other ways. It grades items on the basis of its cost, demand, risks, and group items into different categories.\u00a0<br><\/li><li><strong>ABC Inventory Management Analysis<\/strong>: This is like sorting your toys by how much you love them. \u2018A\u2019 toys are your absolute favorites, \u2018B\u2019 are cool but not the best, and \u2018C\u2019 toys, well, they\u2019re okay. Companies use ABC to know which stuff is super important and which is not.\u00a0<br><\/li><li><strong>Perpetual Inventory System<\/strong>: It\u2019s like having a robot assistant always checking your toy collection. Companies use this system to instantly know how much stuff they have without manual counts. It tracks live record of purchase, sales, and inventory usages through computed ERP manufacturing software or POS systems.\u00a0<br><\/li><li><strong>Last-in, First Out (LIFO)<\/strong>: LIFO is like eating your newest snacks first before they get old. The companies use this technique to calculate the cost of goods sold based on the most recent purchases. It can have tax advantages but might not reflect the actual flow of inventory.<br><\/li><li><strong>Materials Requirement Planning (MRP)<\/strong>: MRP is like making a shopping list before you cook a big meal. Companies use it to plan what materials they need and when to make their products. It\u2019s all about being super organized.<br><\/li><li><strong>Just-in-Case Stock Control (JIC)<\/strong>: Imagine you\u2019re packing for a trip, and you take a few extra clothes \u201cjust in case\u201d the weather changes. JIC is similar \u2013 companies keep extra stock on hand, just in case they run out. It\u2019s like having spare tires in your car trunk.<br><\/li><li><strong>Vendor-Managed Inventory<\/strong>: This is when the supplier keeps an eye on your inventory for you. It\u2019s like having a personal shopper who restocks your fridge when you\u2019re running low on groceries.<br><\/li><li><strong>Cross-Docking<\/strong>: Think of it as a relay race for goods. Products arrive at a warehouse and are quickly sorted and shipped out without being stored. It\u2019s like passing a baton in a race, making sure things move fast.<br><\/li><li><strong>Cycle-Counting<\/strong>: Instead of counting everything at once, cycle-counting is like checking a portion of your toys regularly. You keep counting a few every day to ensure everything\u2019s in order over time.<br><\/li><li><strong>First in, First Out (FIFO)<\/strong>: Imagine a stack of books where you always read the one on top first. FIFO is similar \u2013 the oldest items are sold or used first to ensure nothing gets too old. It\u2019s like eating the oldest cookies in the jar first.<\/li><\/ul>\n\n\n\n<p>Use of these methods can help companies organize their stocks, save cost, and ensure that they\u2019ve got it whenever it\u2019s needed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Inventory_Control\"><\/span>What is Inventory Control?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/what-is-inventory-control-scaled.webp\" alt=\"what is inventory control\" class=\"wp-image-3183\"\/><\/figure>\n\n\n\n<p>Inventory control means managing the stuff a business keeps in stock, like products or materials. Imagine you run a small store selling snacks. You find yourself in a situation where you can\u2019t produce too many chips as they might go stale, but also want to have enough stock in case customers want to buy extra stock. So, you need to figure out how much to order and when to order more. Here\u2019s what inventory control involves:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Keeping the Right Amount<\/strong>: It\u2019s like making sure you have got enough chips in stocks to sell yet not so many so it becomes old and unsellable.<\/li><li><strong>Tracking What You Have<\/strong>: You need to know how many chips you have in the storage room. Maybe you use a notepad to write down how many bags you sell and subtract that from what you had.<\/li><li><strong>Reordering<\/strong>: When you notice you\u2019re running low on chips, you order more to restock. It\u2019s like making sure you call the supplier before you run out.<\/li><li><strong>Avoiding Waste<\/strong>: You want to prevent chips from going bad or getting too old, so you sell them before they expire.<\/li><li><strong>Cost Control<\/strong>: You also want to be smart about the money you tie up in chips. If you have too many bags, that\u2019s money that could be used for something else.<\/li><\/ul>\n\n\n\n<p>Hence, you can consider inventory control as the balancing act of keeping plenty of stock to meet demand while not letting it go to waste or tying up too much money in it. It\u2019s essential for businesses of all sizes to manage their inventory effectively.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inventory_Management_vs_Inventory_Control\"><\/span>Inventory Management v\/s Inventory Control<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Often people get confused easily between inventory management and inventory control. Although they are cut from the same piece of cloth, there is a fine difference between both of them. In brief:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Inventory Control focuses on the daily handling and management of goods to maintain efficiency and accuracy.<\/li><li>Inventory Management involves strategic, long-term planning to align inventory with company objectives and optimize overall performance.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Aspect<\/strong><\/td><td><strong>Inventory Control<\/strong><\/td><td><strong>Inventory Management<\/strong><\/td><\/tr><tr><td><strong>Definition<\/strong><\/td><td>The daily management and monitoring of goods, including tracking quantities, condition, and location.<\/td><td>The strategic planning and decision-making process for managing a company\u2019s entire inventory.<\/td><\/tr><tr><td><strong>Scope<\/strong><\/td><td>Focused on the immediate handling, organization, and optimization of current inventory.<\/td><td>Concerned with long-term planning, forecasting, and optimizing inventory levels over time.<\/td><\/tr><tr><td><strong>Timing<\/strong><\/td><td>Operational and ongoing, involving routine tasks like restocking, labeling, and quality checks.<\/td><td>Strategic and periodic, involving decisions about what to stock, order quantities, and seasonal adjustments.<\/td><\/tr><tr><td><strong>Objective<\/strong><\/td><td>To ensure efficient use of existing inventory, prevent losses, and maintain accurate stock levels.<\/td><td>To align inventory with company goals, minimize costs, and meet customer demand effectively.<\/td><\/tr><tr><td><strong>Decision-Making<\/strong><\/td><td>Involves day-to-day choices, such as reorder points, stock rotation, and quality control measures.<\/td><td>Involves high-level choices, like product selection, supplier negotiations, and demand forecasting<\/td><\/tr><tr><td><strong>Primary Responsibility<\/strong><\/td><td>Often falls on inventory managers, warehouse supervisors, or stockroom staff.<\/td><td>Typically managed by senior executives, supply chain professionals, and operations managers.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Inventory_Management_Red_Flags\"><\/span>Inventory Management Red Flags<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/inventory-management-red-flags-scaled.webp\" alt=\"inventory management red flags\" class=\"wp-image-3184\"\/><\/figure>\n\n\n\n<p>Either human or inventory management, you should always spot a red flag before it starts becoming key pain in your life or business. It\u2019s like catching a small problem before it grows into a big headache. Being proactive can save you time, money, and stress in the long run. Here are few red flags of inventory management that you ignore at your own risk:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Excessive Stock Levels<\/strong>: When you have too much inventory sitting around for extended periods, it ties up your capital and storage space, leading to potential losses.<\/li><li><strong>Frequent Stockouts<\/strong>: Running out of essential products too often can result in lost sales and dissatisfied customers.<\/li><li><strong>Poor Inventory Turnover<\/strong>: If your inventory turnover rate is low, it means you\u2019re not selling products fast enough, and you may be left with obsolete items.<\/li><li><strong>Inaccurate Records<\/strong>: If your records don\u2019t match physical inventory, it can lead to confusion, errors, and financial discrepancies.<\/li><li><strong>High Holding Costs<\/strong>: When you spend a significant amount on storage, insurance, and maintenance for inventory, it can eat into your profits.<\/li><li><strong>Supplier Reliability Issues<\/strong>: Constant delays or quality problems with your suppliers can disrupt your supply chain and affect customer satisfaction.<\/li><li><strong>Unplanned Discounts and Sales<\/strong>: Offering frequent discounts to clear out excess inventory can impact your profitability.<\/li><li><strong>Aging Inventory<\/strong>: Goods that have been in stock for a long time can become obsolete, leading to losses.<\/li><li><strong>Lack of Demand Forecasting<\/strong>: Not accurately predicting future demand can result in overstocking or understocking.<\/li><li><strong>Manual Processes<\/strong>:- Relying heavily on manual tracking and ordering can lead to errors and inefficiencies.<\/li><\/ul>\n\n\n\n<p>You can take your business to new heights via just detecting red flags and taking corrective actions. Well! Of course there are other factors to consider, but hey, you finish a book by reading every chapter carefully, right!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Best_Practices_of_Inventory_Management\"><\/span>Best Practices of Inventory Management<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Using inventory management practices is just like having a fire extinguisher, it\u2019s not what you would use everyday, but if you might need it, just keep it handy. It helps avoid the bottlenecks and risks as well as help optimize the stock control process in business.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Regular Audits<\/strong>: Perform a \u201cstock check\u201d regularly to catch any discrepancies.<\/li><li><strong>ABC Analysis<\/strong>: Categorize your products into A, B, and C; from most crucial to least.\u00a0<\/li><li><strong>Forecasting<\/strong>: Predict how much of each product you\u2019ll need using past sales and market trends.\u00a0<\/li><li><strong>Safety Stock (Atithi)<\/strong>: Have spare snacks (inventory) at home for unexpected guests.<\/li><li><strong>First In, First Out (FIFO)<\/strong>: Use the \u201cfirst in, first out\u201d principle, sell the old ones first.\u00a0<\/li><li><strong>Vendor Relationships<\/strong>: Build good relationships to get better rates and quick deliveries.\u00a0<\/li><li><strong>Technology<\/strong>: Use digital friends for inventory management software to track your orders.\u00a0<\/li><li><strong>Economic Order Quantity (EOQ)<\/strong>: Calculate right quantity for each product to reduce costs.\u00a0<\/li><li><strong>Cross-Train Staff<\/strong>: Ensure multiple people have your back when you\u2019re not available.\u00a0<\/li><li><strong>Regular Review<\/strong>: Don\u2019t just set and forget. Continuously review and adjust your inventory strategies based on changing demand, seasonal trends, and market conditions.<\/li><\/ul>\n\n\n\n<p>By following these best practices, you can keep your inventory in check, reduce costs, and ensure you have the right products available when your customers need them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Useful_Inventory_Management_Formula\"><\/span>Useful Inventory Management Formula<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2023\/09\/inventory-management-formula-scaled.webp\" alt=\"inventory management formula\" class=\"wp-image-3185\"\/><\/figure>\n\n\n\n<p>As so far we have learned the importance, techniques, methods, and difference between inventory management and control. Let us introduce you with some inventory management formulas for new business owners. Let\u2019s briefly break down each of these formulas to make them more approachable:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Economic Order Quantity (EOQ) Formula: <\/strong><a href=\"https:\/\/www.investopedia.com\/terms\/e\/economicorderquantity.asp#:~:text=Economic%20order%20quantity%20(EOQ)%20is,has%20been%20refined%20over%20time.\" target=\"_blank\" rel=\"noreferrer noopener\">EOQ<\/a> helps you figure out how much of a product to order at a time.<\/li><\/ol>\n\n\n\n<ul class=\"wp-block-list\"><li>D represents the cost of placing an order (like shipping and handling).<\/li><li>K is how much of the product you sell in a year.<\/li><li>H is the cost of holding one unit in inventory for a year (storage costs, tied-up money).<br><\/li><\/ul>\n\n\n\n<p>2. <strong>Days Inventory Outstanding (DIO) Formula: <\/strong>DIO gives you a daily view of how efficiently you manage your inventory. You calculate it by dividing the average inventory by the cost of goods sold (COGS).<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>COGS is what it costs you to produce and sell your products.<\/li><li>It\u2019s important to consider industry norms when interpreting your DIO.<br><\/li><\/ul>\n\n\n\n<p><strong>3. Safety Stock Formula (SSF): <\/strong>Safety stock is like a buffer to handle unexpected changes in demand or delivery times.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>You can calculate it by looking at your past purchase and sales order history.<br><\/li><\/ul>\n\n\n\n<p><strong>4<\/strong>. <strong>Reorder Point Formula (RPF): <\/strong>This helps you determine when it\u2019s time to reorder stock.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Instead of relying on intuition, it\u2019s based on factors like lead time (how long it takes to get new stock) and safety stock.<br><\/li><\/ul>\n\n\n\n<p><strong>5<\/strong>. <strong>Cost of Goods Sold (COGS) Formula: <\/strong><a href=\"https:\/\/www.investopedia.com\/terms\/c\/cogs.asp#:~:text=Cost%20of%20goods%20sold%20(COGS)%20includes%20all%20of%20the%20costs,COGS%20results%20in%20lower%20margins.\" target=\"_blank\" rel=\"noreferrer noopener\">COGS<\/a> is crucial for understanding the cost of producing and selling specific goods.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It\u2019s a key component in inventory accounting and overall production cost calculations.<\/li><\/ul>\n\n\n\n<p><br>These formulas might seem complex at first, but they\u2019re powerful tools for managing your business\u2019s inventory effectively. They can help you save money, reduce waste, and make sure you have the right products on hand when your customers need them. If you\u2019re ever unsure about using these formulas, consider seeking advice from an accountant or using inventory management software that can do the calculations for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tim_Cook_on_Inventory_Management_at_Apple\"><\/span>Tim Cook on Inventory Management at Apple<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tim Cook, known for his smart inventory skills, once compared inventory to dairy products, saying, \u201cNo one wants to buy spoiled milk.\u201d He meant that keeping too much stuff around can be as wasteful as letting milk go bad. So, managing inventory well can save a company a lot of money. It\u2019s all about finding the right balance \u2013 having enough to meet demand but not so much that things go to waste.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Bottom_Line\"><\/span>The Bottom Line<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Inventory management is like keeping your room tidy and your toys sorted. If you want to save your money, time, and efforts in business, you really need the exact amount of your inventories. Not too much, not too little \u2013 just enough. Whether you\u2019re running a store or just organizing your stuff, these inventory management tips will help you keep everything in its place and avoid any surprises.<br>\u00a0<br>As they say \u2013 \u201c<strong>Samay se pehle, samay par, aur samay ke baad \u2013 inventory ko sambhalna sikho!<\/strong>\u201d Remember, it\u2019s not just about counting things; it\u2019s about making smart choices that keep your business running smoothly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1695897281684\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Q1_What_is_aging_inventory_and_why_is_it_important\"><\/span>Q1. What is aging inventory and why is it important?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. Aging inventory means stuff that\u2019s been sitting around in your stockroom for a while and isn\u2019t flying off the shelves. It\u2019s important because it ties up your money and storage space, and you don\u2019t want your cash stuck in dusty old products. We have listed techniques to detect your aging inventory and ways to use them before the stock up.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1695897294452\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Q2_What_are_the_strategies_that_can_be_used_to_manage_aging_inventory\"><\/span>Q2. What are the strategies that can be used to manage aging inventory?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. You can try selling it at a discount, bundling it with other stuff, or finding a new audience for it. And if all else fails, chat with your suppliers about returning or swapping it. Oh, and don\u2019t forget to keep a close eye on your inventory to catch aging items early. The other strategies include bundling, repackaging, promoting, or selling stuff into a different target market.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1695897307884\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Q3_What_are_some_effective_inventory_liquidation_strategies\"><\/span>Q3. What are some effective inventory liquidation strategies?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A. You can have a big sale, offer sweet discounts, or even bundle it with popular items. Don\u2019t underestimate the power of online marketplaces either. And hey, if all else fails, consider donating it or recycling it to reduce your losses. Recycling, local partnership, tax deduction, wholesaling, online marketplace, and bundle deals are added ways in the list, you can use to liquidate your inventory.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><strong>Now that we have already read about Inventory Management, Let\u2019s move to the next important thing for any Business \u2013 <a href=\"https:\/\/www.gettogetherfinance.com\/blog\/working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Working Capital<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview Let\u2019s talk about inventory management! We\u2019ve all had moments when we wondered how companies always have their products in stock, whether it\u2019s in their stores or online? When it&#8230;<\/p>\n","protected":false},"author":1,"featured_media":10041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[177],"class_list":["post-3177","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-inventory-management"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/3177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=3177"}],"version-history":[{"count":6,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/3177\/revisions"}],"predecessor-version":[{"id":10042,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/3177\/revisions\/10042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media\/10041"}],"wp:attachment":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=3177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=3177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=3177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}