Inventory is one of the most valuable assets in any business – both on balance plus in terms of keeping the business ticking. It is a challenging task to manage inventory well, but it helps your business generate more profits and deliver more to your customers.
Inventory becomes more important while running an eCommerce business as there are other functional departments too to take care of. It’s surprising that many businesses still manage their inventory manually or without a proper inventory control system.
What is Inventory Control System?
It is a technology solution that tracks and manages a company’s goods through the supply chain. The inventory control system integrates, tracks, and manages inventory purchasing, receiving, shipping, warehousing, and returns into a single system.
The primary objectives of control over inventory are to minimize capital investment in inventory by eliminating excessive stocks and provide a scientific basis for planning of inventory needs. Inventory analysis is an important consideration in inventory control.
Choosing a correct inventory management approach ensures you have the right stock at the right time to fulfill customer demands. An accurate inventory count system helps make your business more profitable by lowering the cost of goods sold and increasing sales as you have the stock on hand to fill orders.
Importance of Inventory Control System
Inventory control systems give companies who sell quantifiable goods an accurate means to oversee their stock levels, losses, sales, and much more. It automates the stock counting process to prevent inevitable errors involved if the tasks are done manually.
Now, let’s learn about why inventory control is crucial to the success of your business.
Accountability of Goods
An inventory control system helps you know where the product is and how to find it in the warehouse. You are always aware of the product’s exact location, size, quantity, and remaining inventory. It speeds up your process, saves your time, and prepares a pick list at the earliest.
Overstocking and Understocking
Many companies find trouble in properly stocking their warehouse and end up exhausted while placing a new order. The inventory control system helps you understand the current stock figures and place orders accordingly.
Inventory control system minimizes the scope of overstocking and understocking. It saves investment costs and prevents the blockage of finances using real-time updates.
Tracking Inflow and Outflow of Goods
For the company making numerous sales in a day, it is essential to keep track and monitor the fulfillment of the orders. Plus, making sure they are accurate and going to the right buyer.
The inventory control system tracks and feeds data for every incoming and outgoing merchandise if the product returns. Thus, the system keeps track and records all the product movements.
Optimum Usage of Warehouse Space
Accurate inventory counts help in the proper management of the warehouse. In other words, with reduced overstocking, the warehouse can be utilized more efficiently.