Inventory or stock forms an important part of any business that deals with any kind of product. This inventory is crucial as it helps a business to become and stay profitable. Managing and controlling inventory could be a daunting task. The introduction of technology, digital tools and methods have helped businesses to keep track of inventory. But what is inventory control and what is its importance in the business world?
Inventory Control VS Inventory Management:
Inventory control and management are sometimes used synonymously but they are two essentially different things. Inventory management involves dealing with forecasting the demand for the products and their replenishment. Inventory control, on the other hand, deals with controlling the stock that is already in the warehouse of the company. The inventory or stock control practices help businesses to keep a track of different products in the warehouse. It also involves keeping a check on this inventory and maintaining it.
Importance of Inventory Control :
There are various goals of a business achieved through inventory control measures. The inventory control practices help businesses to make profits and to ensure customer satisfaction as well. Inventory control is crucial as it achieves the following goals for the business.
Quality Check :
Inventory control focuses on regular quality control measures. These quality checks help in keeping a track of the inventory in the warehouse. It also enables to single out the bad quality products brought in by the suppliers and helps in keeping a record of products that are often returned by the customers.
Better Accounting Practices :
The stock forms an important part of the assets of any business. Inventory control, when practised properly, helps in figuring out the proper valuation of the company. It helps in maintaining accounting accuracy which results in better profitability for the business.
Use as Incentives and gifts:
If a low-priced product is not selling, then you can offer that product as a complimentary gift or an incentive to your customers. This strategy will have dual benefits as a business can ensure the sale of slow-moving inventory and have increased conversion rates for popular products.
Inventory Control Methods and Best Practices:
Proper inventory control practices can help businesses to achieve the basic goals of the company. Here are some of the common strategies used by companies for better inventory control systems in the warehouse.
Real-Time Analytics :
Technology has brought automation to various business departments. Real-time analytic automated tools can be used by businesses to control inventory in the warehouse. These tools provide accurate digits which in turn aid a business in making the best financial decisions. They are also capable of increasing the ROI and decreasing the carrying costs associated with the inventory.
Proper Labelling :
Sometimes, traders underestimate the value of labelling the stock. Labelling strategies like SKUs and barcodes help in keeping track of the products in the warehouse. These practices make inventory control easier. They provide more efficient ways to count and maintain the stock.
Regular Auditing :
Even though technology and digital tools can help in better inventory control, nothing can compare with the human touch. A supervisor should always keep an eye on the warehouse and look out for human errors like loss due to theft or spoilage.
Inventory control practices can help in reducing the problem of overstock or excess inventory in a business. Overstock can also be dealt with by B2B excess inventory liquidation companies like excess2sell. Excess2sell offers a profitable platform for all kinds of businesses to liquidate their overstock at a good price. The platform can be used to completely reduce excess inventory in your warehouse.