In order to stay in the competition, the businesses must learn how to effectively control their inventory.
Through inventory control, you can streamline your liquidity position, alleviate expenditures, maximize profits, make deliveries on time and thus generate an agreeable customer experience. accumulated wealth for business
Controlling inventory manually helps, but, it also leaves a large window for mistakes – mistakes only human beings can make. To sustain growth and tap the sales through manifold channels, you must undertake a structured approach.
Difference between Inventory Control and Inventory Management
Many people use inventory control and inventory management interchangeably. But these two terms are different and address different parts of the inventory.
Inventory control refers how well you can manage the stock specifically in the warehouse. By managing the warehouse inventory, you can optimize the stocks in accordance with the sales, and the factors that impact demand and supply of a product.
Inventory management, on the other hand, encompasses the wide range of aspects associated with the supply chain, starting from purchasing raw materials to making deliveries.
Significance of Inventory Control
Inventory control is believed to be significant for the following reasons:
- By impartially predicting demand, you can set the operational costs as per your own needs, and acquire operational proficiency.
- When you have safety stock, you do not have to rely on guesswork, and you can keep business disruptions at bay.
- With effectual inventory control, you will be able to reap maximum savings and avoid product wastage. That’s great, right?
- Inventory control also prepares you for the sudden supply outages or the seasonal/cyclical spikes in the demand.
Inventory Control Techniques
RFID inventory solutions have acquired widespread popularity probably because it helps you maintain the inventory levels without hassle. You are free to set the reorder levels for each product or run the business based on backorders. Make sure to depend on a genuine provider. You would not want your hard-earned money to go down the road.
Know What You Own
To control the inventory in a seamless manner, you must know what the amount of stock you have at the present moment. You may do this by counting frequently. Now there is no process as required and as full of errors as inventory counting. Be careful. You must see the data has zero repeat counts. This is why software such as RFID (radio frequency identification) seems viable.
Track the Sales
In the past, the inventory records were kept on paper or spreadsheet. The modern-day retailers realized the necessity of using software. While on paper gives you an appropriate picture of the inventory, the data must be studied in conjunction with the sales numbers. Knowing how much stock is shipped, sold, replaced, and returned is just as mandatory as knowing the state of the inventory inside the warehouse.
Inventory control is noted for offering an excellent insight into the stocks present in the warehouse and in the store. By handling this particular aspect with caution, you will be able to decrease the losses, sell optimally, and prevent the whole out-of-stock situation.