Inventory Control


What Inventory Control Means?

Inventory control refers to all processes that contribute to the provision, accessibility and storage of products in a company to minimize the time and costs associated with managing the same: it's a mechanism through which the organization runs so efficiently the movement and storage of merchandise, as well as the flow of information and resources that result from it. It involves different aspects, but in general terms it's subdivided as regards management and optimization.

The management is responsible for maintaining productivity in operations related to inventory management, while optimizing deals with increasing company profits from the use and handling of this.

For full implementation, the following recommendations must be followed:

  • Maintain a catalog with the products that are handled . Organizing information held on stocks and complementing it with relevant details, in addition to constantly debugging it, facilitates the visualization of inventory needs and opportunities in real time.
  • Sort the products . In addition to the above, separate by semantic groups: either by supplier, sales success or lag, will make inventory information more accessible, as well as expedite the taking of necessary measures " resupply, re-offers, among others ".
  • Establish a method and periodicity for making inventories:
    • Perpetual inventory: A continuous record is made " day by day " of the production and sale of items, so you can know the cost of inventory and stocks in it without having to determine an inventory date.
    • Periodic inventory: Specific dates are chosen to count the merchandise according to the needs of the company, which usually requires more time and effort. The temporary cessation of activities should be considered.
  • Understand key concepts for integration:
    • Stock up: Limit of units, per article, that you want to keep in storage according to the profits and costs they represent.
    • Minimum stock " security ": Minimum stocks, per item, that are required in stock considering refueling and the possible losses that their lack means.
    • Re-order point: Moment " measured by the quantity of stocks " in which resupply orders must be made taking into account supplier times and costs.
  • Constantly monitor and update the information collected, and the system used . So you can request the purchase of units before they run out, rotate merchandise generating attractive campaigns, recognize the usefulness of the methods implemented, identify areas of opportunity and integrate improvements.
  • Integrate specialized tools: These accelerate compliance with inventory-related activities by allowing access to automated management interfaces.

Benefits of Exercising Good Inventory Control

  • Relevant and current information on stocks, enabling better decision making
  • It emphasizes the effectiveness of the company and the efficiency of its procedures
  • Increase the quality of customer service
  • Aid for the relevant identification of seasonality or product flow
  • Optimize the investment of resources " economic, human and temporary "

It allows to have a better knowledge and control of the entrances, exits and location of merchandise: losses are reduced, the space in store is optimized and the attention on the existence is increased " recognizing possible robberies and losses "

The main purpose and benefit of this control is to facilitate operations to companies and businesses to boost the sale of products and services, balancing tasks to meet supply and demand, as well as improving the culture of business organization to position the brand and its offer in the awareness of the audience and in the competitive market.

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