Warehouse management then synchronizes sales and purchases to the stock on hand. This process includes integrating product coding, reorder points and reports, all product details, inventory lists and counts and methods for selling or storing. Warehouse management also squarely falls into the arena of stock control. For example, Walmart estimated it missed out on $3 billion worth of sales in 2014 because its inadequate inventory control procedures led to stockouts.Īn integral part of inventory control is supply chain management (SCM), which manages the flow of raw materials, goods and services to the point where the company or customers consume the goods. Inventory control can help avoid problems, such as out-of-stock (stockout) events.

Done right, it allows companies to assess their current state concerning assets, account balances and financial reports. Inventory control enables the maximum amount of profit from the least amount of investment in stock without affecting customer satisfaction. According to the 2017 “State of Small Business Report”, almost half of small businesses do not track their inventory, even manually. Successful inventory control requires data from purchases, reorders, shipping, warehousing, storage, receiving, customer satisfaction, loss prevention and turnover. With the appropriate internal and production controls, the practice ensures the company can meet customer demand and delivers financial elasticity. Inventory control, also called stock control, is the process of ensuring the right amount of supply is available in an organization.

Expert advice on optimizing, software and industry predictions.The easy-to-understand expert advice, guidance, formulas, methodologies, policy development and software guidance will help any business-large or small. This guide provides everything you need to get started on inventory control. East, Nordics and Other Regions (opens in new tab)Įverything You Need to Get Started and Become More Efficient

Another word for running cash register