Welcome to Inventory Control 101: Stock Control Management Mastered

May 31, 2024

There is no way a business can be successful without a good system to control inventory. What is inventory control and why is it important?

Learn more at What Can a Stock Control System Do for Your Business?

What Is Inventory Control?

Stock control or inventory control is control of inventory so as to maintain enough stock to satisfy demand, at the same time as avoiding too much stock that ties up capital.

Stock Control Key Considerations Inventory Control

• Stock Tracking
  Know what stock you have at all times, as well as what is where and when it needs ordering.

• Demand Forecasting
  Anticipate trends in customer demand to maintain stock levels to avoid stock outs and over-stocking.

• Order Management
  Streamline the ordering process to ensure that stock is ordered and replenished on time, with no unnecessary delays.

• Inventory Optimization
  Refine your inventory mix so that you have an inventory that includes little but high-turnover merchandise, and excludes slow-moving or obsolete goods.

Benefits of Effective Inventory Control

The following are the benefits of an inventory control system:

• Improved Cash Flow
  Minimize cash tied up in excess stock and release capital for other uses.

• Enhanced Customer Satisfaction
  Provide adequate product availability to satisfy customers and fulfill order requirements.

• Reduced Wastage
  Avoid overstocking and the risk of perishable or obsolete inventory.

How to Control Inventory

• Choose the Right Tools
  Provide personnel with inventory management software tools, such as Britecheck, that automate inventory control.

• Set Clear Policies
  Define your inventory control policies and procedures and keep them consistent.

• Perform Regular Audits
  Conduct periodic audits to ensure inventory accuracy.

• Continuous Improvement
  Monitor key performance indicators and continue refining control.

• Inaccurate recordkeeping
  Check inventory count against purchasing records.

• Bookkeeping
  Failure to record all inventory transactions.

• Poor cycle counts
  Failure to count inventory regularly.

• Poor inventory counts
  Failure to consult with employees on inventory items, or having employees perform multiple counted items on a single record.

• Internal theft
  Either someone issued product and didn't record it or someone recorded themselves as having received product that actually doesn't exist.

These key principles are fundamental for inventory control:

• Accuracy
  There should be correct records kept. Maintaining accurate inventory records means having quantities in stock recorded and the stock data in readable electronic form.

• Consistency
  Inventory control consistency means that you will have the same reliable and efficient procedures to follow each day. It means that you create and follow policies, practices, and procedures consistently. It means that everyone who touches inventory uses the same controls the same way all the time. That reduces variance and error, improves communication, and helps groups and teams work together better.

When accuracy, optimization, and consistency of inbound and outbound stock are ensured, all of this is possible. That way, a company can provide optimum customer product assortment, price, and service levels to satisfy demand now and in the future.

Organizations must make sure that inventory records are accurate using the following practices and technologies.

Optimizing inventory is critical to every company. It involves balancing supply chain demand to provide the right product to customers at the right time, at the right cost. It means ordering the right amount from the right supplier at the right price and quality. Technology can help implement and support these practices, enabling any company to grow sales, prevent stockouts, and reduce costs. These methods provide a useful framework for inventory optimization strategies.

Are you Ready to Tame Your Inventory? Supercharge your Company with Effective Control and Conquer!