What Is Inventory Control? Do This Before It's Too Late!

What is inventory control (Freepic)

YOGYAKARTA - If you are a multichannel retailer, wholesale, or e-commerce brand, maintaining inventory control can be a frightening prospect. However, systems, processes, and technology are now available to help companies streamline their supply chains. By using an inventory control system, you can track your merchandise efficiently and accurately. What is inventory control?

This guide will help you with an explanation of what inventory control is, an example of the apparent meaning of inventory control, its different types of inventory control, and its interests, as well as its challenges and inventory control systems. It will also provide tips for inventory control, discuss multiple systems and inventory control techniques, and answer the question of What is inventory control doing?.

Supply control, also called inventory control, is a company inventory level management process, either in their own warehouses or scattered in other locations. It consists of goods management from when you have it in supply to the final destination (ideal to customers) or disposal (not ideal). The inventory control system also monitors its movement, use, and storage.

An inventory control means managing your inventory level to ensure that you keep the optimal number of each product. Proper inventory control can track your purchase order and maintain the functional supply chain. The system can be applied to help forecast and allow you to set a reorder point as well.

Supply control can include:

The general goal is to maximize your profits while as few supplies as possible are in your warehouse. Your business should do this without sacrificing customer satisfaction. While you can handle inventory control manually, there is an automatic system responsible for managing your stock level, and helping to eliminate expensive human error.

According to the US Census Bureau, in July 2020, US manufacturers and retailers had $1.33 in stock for each $1 sale.

Effective Inventory Control allows you to change inventory/sale ratio for the better. Stationary stock doesn't do anything for your business or the profits. Maximize the valuable space you have, while ensuring you always meet customer demand.

Why is Inventory Control important?

Here are some important inventory control methods for your business so you can get an inherent understanding of inventory control goals.

Quality control

Having an inventory management system allows you to apply better quality control. If you can track and manage all aspects of your stock, you can control your quality better. The longer you save an inventory, the more likely it is to be damaged. You can avoid this by ensuring that your stock is rotated through your warehouse.

The inventory control technique also allows you to track the quality of the stock you receive from the supplier. How often do you return certain products? How often do you send those returned back because they are damaged or have other defects? See how a product moves through your inventory can show any problems, and help you eliminate removal.

Organizational control

An inventory control means you have organizational control in your business. A well-organized stock space allows you to manage merchandise and maximize your investment in a physical inventory. This inventory control aspect is essential to know where your stock is located and the benefits that you can use to access it.

An inventory control in terms of your stock organization is very important to run your company properly. This will ensure that you have enough units to fulfill orders and have a safety stock.

Effective inventory control techniques will also help you avoid stock outages or overstocks. Safety stocks serve as a buffer to reduce the risk of an item running out of stock. Dead stock is a supply that doesn't sell. What briefly explains why inventory control is needed.

Accounting accuracy

Saving accurate inventory records is essential for managing your assets. It will also help you in the event of an audit. Knowing what you have in the asset allows you to know your overall damage and understand the value of your company.

The rules of accounting for finance and tax regulations may mandate your company to have a physical inventory account. All stocks must have the correct number and price in your inventory system and accounting software. This will ensure your company can undergo an audit without questioning the integrity of your business accounting.

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