{"id":99960,"date":"2023-02-22T11:37:06","date_gmt":"2023-02-22T11:37:06","guid":{"rendered":"https:\/\/businessyield.com\/?p=99960"},"modified":"2023-02-22T11:37:09","modified_gmt":"2023-02-22T11:37:09","slug":"inventory-control","status":"publish","type":"post","link":"https:\/\/businessyield.com\/ecommerce\/inventory-control\/","title":{"rendered":"INVENTORY CONTROL MANAGEMENT & SYSTEM: Best Practices","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Maintaining inventory control as a multichannel retailer, wholesaler, or e-commerce firm can be a demanding task. Yet, systems, methods, and technology are now available to assist businesses in streamlining their supply chain. You may efficiently and correctly track your merchandise with the help of inventory control systems. This article will assist you by explaining what inventory control is, providing clear inventory control meaning examples, different forms of inventory control and their usefulness, as well as the benefits and problems of inventory control system. It will also offer inventory control suggestions and explore certain inventory control management systems and practices.<\/p>\n\n\n\n
What is Inventory Control?<\/span><\/h2>\n\n\n\n
Inventory control, often known as stock control, refers to the systems and procedures used to manage inventory goods at a company’s warehouse. It tracks the movement and storage of items in a warehouse to assist firms in maintaining a sufficient and in good condition supply. Putting in place an inventory control system allows them to meet consumer requests while also increasing earnings.<\/p>\n\n\n\n
Inventory control is an important component of an inventory management system. Warehouse managers and production planners should follow the following inventory control activities and procedures:<\/p>\n\n\n\n
Receiving, storing, and moving items<\/li>
Putting objects in strategic places<\/li>
Inventory item tracking and warehouse location<\/li>
Keeping track of product data and histories<\/li>
Checking the condition of stock goods<\/li>
Completing purchase orders with available inventory<\/li>
Including barcode scanners<\/li>
Creating rearrange reports<\/li><\/ul>\n\n\n\n
What Makes Inventory Control Important?<\/h2>\n\n\n\n
Here are some examples of why inventory control is important for your business so you can obtain a fundamental knowledge of its function.<\/p>\n\n\n\n
#1. Quality Control<\/h3>\n\n\n\n
With an inventory management system, you may apply tighter quality control. You can better control quality if you can track and manage all aspects of your supply. The longer you keep inventory, the more likely it may be harmed. You can avoid this by ensuring that your warehouse stock is rotated.<\/p>\n\n\n\n
You can monitor the quality of the stock you get from suppliers using inventory control strategies. How frequently do you get certain things returned? How frequently are those that are returned because they break or have other flaws? Seeing how products travel through your inventory might help you identify problems and eliminate write-offs.<\/p>\n\n\n\n
#2. Organizational Control<\/h3>\n\n\n\n
You have organizational control over your business if you have inventory control. A well-organized stockroom allows you to manage your merchandise and make the most of your physical inventory investment. This part of inventory control is critical for knowing where your merchandise is and how quickly you can retrieve it.<\/p>\n\n\n\n
For the smooth operation of your business, inventory control in terms of the stock organization is critical. It ensures that you have enough units to fulfill orders and keep as a backup. Good inventory management tactics will also assist you in avoiding dead stock and overstock. Safety stock serves as a buffer, lowering the likelihood of an item becoming out of supply. Inventory that does not sell is known as dead stock. That, in a nutshell, is why inventory control is essential.<\/p>\n\n\n\n
#3. Accountancy precision<\/h3>\n\n\n\n
Maintaining an accurate inventory record is critical for asset management. It will also aid you if you are audited. Understanding what assets you have assists you to comprehend your overall spoilage and the value of your organization.<\/p>\n\n\n\n
Your organization may be required by financial accounting laws and tax legislation to maintain a physical inventory account. In your inventory systems and accounting software, all stock should have the correct numbers and pricing. This ensures that your company’s accounting integrity is not called into question during audits.<\/p>\n\n\n\n
How Do You Keep Inventory Costs Under Control?<\/h2>\n\n\n\n
Inventory control software facilitates the recording of stock, packaging, and shipping information in a single location, hence optimizing your company’s procurement process. Real-time stock movement updates can assist you in automating stock level control for accurate sales performance and inventory analytics. All of this contributes to inventory cost control.<\/p>\n\n\n\n
Inventory Control Systems<\/h2>\n\n\n\n
Businesses can use a variety of inventory control systems and related methods. So, what types of inventory control do you require for your company? Depending on the amount of your inventory and the operations of your business, each has advantages and disadvantages. Retailers’ needs may differ from those of a wholesaler, for example. Begin by defining your business goals and metrics in order to determine your present and future demands and select the best inventory control system. Then, decide whether your company should:<\/p>\n\n\n\n
#1. Use a spreadsheet.<\/h3>\n\n\n\n
A spreadsheet as a manual inventory control strategy works well for tiny organizations that don’t retain much stock or have a wide variety of inventory. While keeping a spreadsheet is less expensive than the other two options, it can be more difficult to manage inventory. Your team members, on the other hand, will not have to spend time learning how to use an automated system for inventory control.<\/p>\n\n\n\n
While you may believe it gives you more control, manual inventory control via spreadsheet is significantly more prone to human mistakes and labor-intensive. Supply chain management may also be more difficult to maintain because an employee must keep track of several moving elements. Stock replenishment will also be more difficult to track in a manual system.<\/p>\n\n\n\n
#2. Periodic Inventory System<\/h3>\n\n\n\n
Physical inventory counts are typically used in a periodic inventory system. When a physical count is performed, inventory information is updated on a regular basis. For firms that deal with huge volumes of inventory or frequent inventory moves, this form of the inventory control system is extremely time-consuming. Yet, inventory control strategies like these can be effective for small businesses with few orders. The following formula is commonly used in periodic inventory:<\/p>\n\n\n\n