Even though the two terms are not synonymous, they are however related to each other. Inventory management focuses on the warehouse’s entire supply chain whereas controlling inventory is focused on the prevention of stockouts and overstocking.
The practice of managing the flow of goods along the supply chain is what is referred to as the management of inventory. It is in charge of managing inventory from ordering and storing all the way to the point at which it is sold to a customer. In addition to this, it is also responsible for managing the connections with the customers and the vendors. The supply chain can be optimized, expenses can be reduced, and customer service can be improved with an inventory management strategy.
The daily activity of monitoring and maintaining optimal inventory levels across multiple sites is referred to as inventory control . The purpose of inventory control is to guarantee that there will always be enough of a product available to meet customer demand at any given time. The reduction of the danger of both overstocking and understocking is the responsibility of inventory control. Why inventory control? It is helpful to reduce the amount of inventory that a company keeps on hand, which results in a reduction in the costs associated with maintaining an adequate supply of inventory. You will be able to reduce the possibility of wastage as well as the theft of items or products if you have sufficient control over the inventory. This will also ensure that the operation runs smoothly and effectively.
Tips for effective inventory control.
The following are some of the tips for effective inventory control system:
- Check out your inventory: There may be some goods or materials that require more attention than others. By using the ABC method, you can categorize your stocks in the facility. Stocks in the A category need the most attention whereas stocks in the C category need less attention.
- Use integrated inventory control software: The utilization of an automated inventory system lends a hand in your inventory control process by facilitating the optimization of stock levels, the monitoring of stock movements, the tracking of stock shipments, the performance of inventory valuations, and a great deal more.
- Store products properly: Inventory damage or spoilage can be caused by improper storage which is why it is crucial to provide ideal storage space for your products. In addition, check the condition of your pallet racks to make sure that it does not cause any damage to the products.
- Implement FIFO and FEFO method: Implement the FIFO (First-In-First-Out) and FEFO (First-Expired-First-Out) methods to minimize the risk of product damage and spoilage. This method also helps to optimize your company’s inventory turnover which results in the increment of your company revenue and profits.
- Perform regular inventory audits: Even if you have been depending on software to do the reconciliation between the accounting data and the actual amount of your physical inventory, it is imperative that you still perform stocktaking.