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Inventory control system definition

inventory-control-scannerA Definition of Inventory Control

Inventory control, also referred to as stock control, is so broad and incorporates so many functions that it is difficult to describe in a limited definition, but we like how this Inc.com entry puts it: Inventory control refers to “all aspects of managing a company’s inventories: purchasing, shipping, receiving, tracking, warehousing and storage, turnover, and reordering.” Inventory control is such a critical piece of an organization’s operations and bottom line that it is too important to leave to human error or antiquated systems. That’s why so many companies opt to invest in inventory control systems, so that all of the components of inventory control are managed by one integrated system.

Advantages of Inventory Control

The ultimate goal of your inventory control should be to maximize your organization’s use of inventory. When you maintain proper inventory levels, you can rest easily knowing that your capital is not unnecessarily tied up in your inventory. If you are in manufacturing, inventory control also protects production if there are problems with bottlenecking or the supply chain.

Typical benefits of a computerized inventory control system include

  • Increased profitability
  • Having enough stock on hand so that you don’t run out
  • Barcodes to track inventory efficiently
  • Reduction or elimination of inventory write-offs
  • The ability to conduct audits more quickly and efficiently

Pros of Computerized Inventory Control

If you handle several warehouse locations or need to access your inventory levels on the go, a computerized inventory control system may be right for your organization’s needs. Inventory control software solutions are more efficient than manual ones, allowing for more flexibility and an easier time retrieving information. Computerized inventory control systems allow you to quickly get a real-time glimpse into your inventory value. Other beneficial features of computerized inventory control include…

  • Inventory data integrated with accounting and invoicing systems, along with sales order processing and purchase order processing so that inventory levels and data update automatically
  • Automatic inventory monitoring, so that orders are placed as soon as the re-order level is reached
  • Automatic batch control
  • Ability to identify the least expensive and fastest suppliers
  • Barcoding systems enhance the processing and ordering process and speed up the inventory management process

Inventory Control Best Practices

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