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The Importance of Inventory Control to Improve Company Efficiency

inventory-control

Inventory management is different from inventory control. Therefore, it is very important for the company or distributor to understand the difference. Inventory control is a way of managing the stock of goods in the warehouse. Including what products have entered the distribution channel, and how many are still stored.

In addition, inventory control is the company's way to ensure all inventory remains in good condition, and well organized in the warehouse. Thus minimizing costs to fulfill customer orders.

The company will be more efficient in time, cost, and energy, if the inventory system recording runs automatically, neatly, and accurately.

Meanwhile, inventory management is an activity that predicts and replenishes inventory.

Companies use inventory management to manage product orders, how many products to order, and who are the best suppliers. With inventory management, companies or distributors have the right amount of stock, at the right location, and at the right time.

Benefits of Inventory Control

Benefits of Inventory Control are as follows:

Evidently, the benefits of inventory control is efficiency for the company. Here are some of the benefits of other inventory control:

Inventory control can improve the company's liquidity position by reducing unnecessary capital due to excess inventory.

1. Inventory control ensures smooth production operations by maintaining a reasonable stock of materials.

2. Inventory control facilitates regular and timely supply to customers through adequate stock of finished products.

3. Inventory control protects the company against variations in the delivery time of raw materials.

4. Inventory control facilitates production scheduling, avoiding material shortages and duplicate orders.

5. Inventory control helps minimize losses due to expired goods, damage, etc.

6. Inventory control allows companies to take advantage of fluctuations in the cost of goods sold through purchases when they are cheap.

How to Increase Company Efficiency With Inventory Control

The Importance of Inventory Control to Improve Company Efficiency

In the digital era, the inventory system should be done in a modern and automatic manner. Here are some things that can improve a company's inventory system and increase efficiency:

Automation of Inventory Systems

Whatever the scale of the company, relying on manual inventory systems or inventory management can have a bad impact on business. There are times when the team working on inventory is sick or on leave. So, there is a delay in the process.

In addition, the manual recording process is still prone to writing errors, causing losses or large margins. In fact, trigger customer disappointment and potentially lost sales.

Automated inventory systems can handle heavy tasks with accuracy and efficiency. All data on purchases, sales and other transactions are stored in the same system.

The number of stock items can be tracked and updated in real time. So, if a customer calls to ask about stock availability, the company can immediately respond quickly.

Integrate With Mobile Technology

In today's era, mobile devices are a necessity. Use an inventory system that is integrated with Cloud technology and is mobile-friendly. So, anytime and anywhere, inventory staff can track or manage inventory.

It is also easier for warehouse staff to send accurate data in real time from any location. This access is important, as it can drive efficiencies across the supply chain and lead to customer satisfaction.

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