Inventory control is a crucial activity for the success of a company. It is not just about managing inputs and outputs, but also about keeping the production flow flowing, as well as ensuring customer satisfaction.
That's why it's such a complex task.
In many companies, this activity is often reduced to a mere checklist. However, inventory control plays a fundamental role in business strategic planning and, therefore, requires initiatives that go much further.
It is an essential part of the organization's working capital.
Therefore, any failure can damage the business, impacting its financial and production results.
A real coup for those looking to increase sales and profitability.
That is why successful companies practice excellent inventory thailand whatsapp data control, supported by many innovative resources, such as modern management strategies and systems.
An inventory control system can prevent disorganization in processes, which negatively affects delivery times and business profitability.
This is because the manager is able to monitor demand forecasts and have greater predictability of consumption to know when to buy raw materials.
In this article we better explain the concept of inventory control, understanding how a system can facilitate information management for your business and what other advantages it offers.
How about learning more about the topic and finding solutions for your company's inventory control? So keep reading!
What is inventory control?
Inventory control is a task that goes far beyond a company's warehouse. It involves the management of products and goods throughout their useful life within your organization.
That is, from the time it enters the warehouse until the customer buys it.
It is a task based on the organization of information and must take into account the entire supply chain to be effective.
The objective is to keep all sectors involved informed of the status of each item, so that they understand its availability and/or need for replenishment.
This account is important and essential, as it provides greater predictability to the company, which can prevent, among other things:
Shortage;
Unnecessary storage;
Excessive use of space;
Damage to products;
Obsolete goods.
What is inventory control used for?
The function of inventory control is to improve the manager's strategic vision.
With a deep understanding of your inventory, you can better understand your demand level, allowing for more efficient production planning, reducing unnecessary costs and increasing your profit margin.
Still, to have a practical understanding of inventory control, it is possible to point out 4 main benefits of its practice:
Integration with finance : Inventory control is almost an arm of financial management, since we are talking about a company asset. Its proper execution directs production.
Space optimization: Good inventory control allows the company to store only what is necessary for production and/or sales, without shortages or excesses of products.
Waste reduction: By carrying out control efficiently, it is possible to eliminate waste (as well as map its origin), which directly impacts the organization's expenses.
Avoid the domino effect: Without products in stock, sales opportunities are lost and business results are affected. A simple mistake can cause a domino effect, which can negatively impact the company.
This clarity of information is not only important, but essential for business continuity.
Please understand: this is not just a statement, but a question of data.
A GS1 US study found that in US retail, inventory is only updated correctly 63% of the time. That means that one-third of the time the information is inaccurate and incorrect.
How to control stock?
There are several methods for carrying out inventory control, from the most archaic to the most modern.
In practice, it is necessary to keep a correct record of the inputs and outputs of products; however, as you have already learned, it goes a little further than that.
In general, there are some steps to follow to better control the products. Check:
Spatial organization;
Plan minimum and maximum quantities for each product;
Creation of a good network of business partners to meet deadlines according to expected demands.
The first point is the definition of the stock location: the physical space that the products and goods will occupy.