What is inventory control?
Inventory control and its objectives, methods, and how to go about it does sound like a lot of work when you start your business.
Inventory control or managing stock determines your order requirements, all your profits, and also remaining stock. If you manage a distribution cell or a manufacturing unit you need inventory control to cater to the demands of your clients or these can eat into your profits. Inventory control comes alive as soon as you have your stock in your warehouse till it goes out for delivery. Dealing with all the operations and activities to manage stock in the warehouses, inventory control uses tactics to achieve regular physical availability of inventory.
Inventory control also takes care of quality, to track locations, items with barcodes, SKUs, and so on. If you implement an efficient inventory control system, you will be able to optimize your stock to segregate what doesn’t sell and focus on producing what sells fast. Inventory control is about the use of techniques inventory in warehouses to manage stock in hand.
Managing inventory and ensuring the smooth flow of goods in warehouses is essential. Companies find it difficult to manage as their disorganized warehouse structures are mismanaged. Inventory control’s objective is to ensure a steady supply of raw materials manufactured or outsourced from the warehouses without interruptions for manufacturing orders on scheduled time. This also applies to distribution businesses where inventory has to be prepared for shipping orders.
Inventory is wasted if the stock is defective or the stock has expired. It also happens when stock is left idle and there’s no demand for the market. Here, inventory control prevents defective stock from entering your warehouses with quality control and prevents dead stock or accumulation of expired items.
Mismanaged inventory control impacts profits in a negative light and leads to stock wastage. Poor inventory control means difficulty in locating items from warehouses where required, from manufacturing orders to distribution activities.
Inventory control saves revenue by marking expired stock and letting go of any inefficiencies during stock movements between storage areas. Stocking inventory requires space. You can manage your inventory, warehouse layouts, locations and save rent costs.
Inventory control and inventory management might sound similar but they are not the same. Inventory management is a broader concept that encompasses everything from stock procurement to selling it to the customer. Inventory control is about conducting daily operations that happen in warehouses to prevent inefficiency, inventory expiration, wastage, etc.
Inventory can make or break your business. Do your best to keep it simple and smart.