The process of resource management deals with planning, directing and controlling the resources in a business environment. It is an effective deployment of an enterprise’s resources when they are needed; such resources include human resources, inventory, financial, production resources and Information Technology (IT). Efficient resource management will help the organization to cut down losses and wastages.
In the absence of effective resource management, the firm may suffer from the excess stock of particular items.
Lack of proper management if the capital is unnecessarily tied up may further lead the business into heavy loss due to obsolescence and deterioration. One could also notice the demerits of poor management, like a shortage of stock. Such shortages may result in production delays, urgent and haphazard purchases to relieve such shortages may result in the acquisition of poor quality and costly materials.