There are a number of factors to be cognizant of when managing an inventory. For example, the cost of storing a particular item versus distributing it must be considered when making pertinent decisions. There is a cost associated with every single action taken in an inventory, so it's important for the inventory manager to understand the potential impact of what they are doing.

An article in the online publication Business 2 Community goes a little deeper into this while discussing a number of tips to help with inventory initiatives. Crystal Wells, the article's author, lists long tail cost as one of the most important things inventory clerks can understand. 

"Long tail cost is the cost of inventory storage and distribution," Wells writes. "When inventory storage and distribution costs are low, it becomes viable to sell relatively unpopular products with long sales cycles – conversely, when storage and distribution costs are high, only the most popular products are sold quickly enough to make a profit."

There is much to understand related to the cost and distribution of every item, so information must be stored and processed efficiently as to not disrupt an organization's operational flow and damage its viability. If the inventory manager doesn't have a clear understanding of the financial ramifications of each decision, their entire operation could be compromised. 

If an item's price changes and it impacts how it should be handled in the inventory, the professional tasked with managing it must know this data right away. Investing in an inventory management software system that promotes real-time reporting and efficient information sharing will go a long way toward ensuring all pertinent information is accurate and updated in a timely manner.