A warehouse costs money for the company and is a great investment. Therefore, it is an extra pity if, due to the inventory, you do not get the most out of what you bought. Taking inventory means creating a register of the goods that are in your company's warehouse. The most common is to inventory once a year and if you have an inventory or inventory system, each item only needs to be inventoried once. If you have a smaller inventory, it's easier to keep track of the products and that's important to do because you can customize what you order in to what you already have. For example, if you notice that some items do not go as fast, you do not need to order as much of them next time.
An important part when it comes to inventory is to try to avoid tying up too much money in it because the risk of buying things that don't work out is that you have to sell them out later, or in the worst case not get them sold at all. By keeping track of your market's various trends, you can reduce that risk because you can control what you order in based on what is likely to sell the most.
Another tactic to not fill the warehouse with unnecessary products is to ask your customers what they want. You can do that in slightly different ways. If you have a physical store, you can ask customers at the checkout. It's an effective way to take the temp on demand. If you have an online shop, you can choose to ask the question at some point in the payment process on the website, or you can email the customer afterwards.
You can also learn from your own history. If you look backwards on orders and purchases, you can quickly see different patterns. For example, many products are seasonal, which means that they are eaten more or less in different seasons. Then you know if you have to cover up with a slightly larger stock of something for the winter and when you can reduce the order.