How Do Inventory Management Systems Work? Inventory management is critical to a business’s success since it ensures that there is never too much or too little goods on hand, reducing the danger of stock outs and erroneous records. Importance of Inventory Management System Project Users can add inventory, delete inventory, enter inventory quantity and other details, update inventory status, and more using the inventory management system. A project for an inventory management system that allows users to easily manage and maintain their inventories.