5 Ways to Utilize Inventory Control Systems in Your Business

inventory control system September 19, 2022

Damini Ralleigh

Writer

What is inventory control system?

Inventory control systems are used in a variety of industries to ensure that stores have enough stock of the products they sell. Inventory control systems can be simple or very complicated, depending on the size and needs of the store. Inventory control system apps are becoming more popular with retailers, as they can be used to check inventory and make purchases online, rather than having to visit the store. An inventory control system is a computer-based application that retailers use to manage their inventory. The software can help them determine how much product they need for an upcoming event or sold at particular times.

What are inventory control systems?

Inventory control systems are the backbone of a warehouse or distribution network. They keep track of how much of a product or its raw materials are available at a given point in time, who has what, and when you need to reorder. These systems often use barcode technology to identify the products being placed on shelves for inventory purposes. In this article, we'll take a look at how these systems work and go over some of the benefits they provide. Inventory control systems are used by retailers to collect and monitor the flow of items in their stores. By using these devices, retailers can keep track of the inventory levels and easily make changes based on how many people are in a store or if they need to replenish. In addition to tracking sales, an inventory management system can also help with maintaining a specific stock level. Inventory control systems are necessary for successful retail businesses because they provide information about how the business is performing in real-time.

Machine learning has changed the inventory management game for good by adding more precision through automation in inventory control. There are two main types of inventory control systems-

Perpetual inventory system- This management system allows you to control inventory in real-time. As soon as a product's barcode is scanned and it is sold, it is deleted from the global inventory database. Similarly, at the time of receipt, the product's barcode is scanned and it is added to the database. This offers an extremely comprehensive view of business inventory along with accurate asset tracking and accounting of stock levels. It is suitable for large and small businesses and is especially useful for stores that have high volume sales or ply their finished goods across multiple locations.

Periodic inventory system- This inventory system is updated by a manual count of products at fixed intervals. This way, a business would only find out about levels after inventory counts. The issues with this system of inventory control are obvious your stock levels might have been accurate months or weeks ago but when a customer demands it, you will have to physically check if the required item is in stock. Further, physically counting stock is time-consuming and can stand in the way of achieving efficiency and affect the company's bottom line. This type of inventory control system can work only for small businesses with limited amounts of inventory.

How to use inventory control systems in your business?

Inventory control systems ease managing inventory by monitoring how much is being sold, and when customers are buying. These management systems are particularly helpful for demand planning, while they ensure that inventory stays low throughout the year by giving you enough lead time. In addition to this, inventory control systems are designed to be used in businesses for a variety of purposes as they also keep track of important data that can guide inventory-related decisions and help maintain cash flows to ensure the company is meeting its goals.

Managing inventory can be a struggle

Zip Inventory will help you to streamline your inventory management processes

The benefits of inventory control

Good inventory control enables the seamless flow of goods in a manufacturing process. It can help companies reduce waste and ensure that products get to where they need to be as efficiently as possible. The goal is for each product to transition from one location in the factory to another without going out of stock or leaving any products unused. The benefits of inventory control include efficiency in inventory turnover, reduced costs, increased profits, asset management, order management, and improved quality. Let's discuss some of these in greater detail-

Real-time inventory updates- A perpetual inventory system offers real-time inventory updates about the sale, purchase, manufacture, or return of a product. This enables users to stay apprised and analyze their inventory flow while setting accurate reorder points. These updates also ensure that the business always has safety stock.

Enhanced logistic workflow- An effective inventory control system ensures proper supply chain management by tracking inventory at every step of the way, thereby offering you insights into constrictions and more time to work on improvements.

Cost-effective- Inaccurate inventory management can cost businesses big money. An out-of-stock item could cost you a customer, while excess stock can increase storage and insurance expenditures. An effective inventory control system helps keep stock levels at their optimum.

Reduces human error- Manual inventory tracking often leads to errors and sometimes even fraud. By monitoring products from purchase orders to the time of delivery, an inventory control system eliminates the possibility of human error and theft.

Better customer service- Inaccurate inventory updates can lead to backorders or canceled orders, and nobody wants unhappy customers. Optimal stock levels allow you to meet customer expectations.

Implementing an inventory control system

One of the most difficult aspects of managing a business is inventory control. Many start-ups and small businesses often find it hard to keep track of what they have in stock, where they are located, and when they need to order more products. Inventory control systems can make these jobs easier by helping you manage your supply chain and know how much inventory you will have on hand. Implementing an inventory control system doesn't require a large investment, but it's important to understand everything before taking the plunge. Here are some best practices that you should consider before deciding to implement one.

- Management software that addresses warehouse management is not enough. A good inventory control system tracks orders from production to purchasing and finally to the point of sale. After this, it removes the product from your database. A good inventory control plan should monitor wasted warehouse space, enable orders through inventory forecasting, and establish and sustain third party/supplier relationships.

- Inventory management and control are ongoing and not limited to warehouse management alone. Tracking matrices and future forecasts are equally important for efficient stock management.

- It is essential to determine how much stock is critical to make sales and ensure that you never run out of those items.

- It is also important to carefully review packing slips and check the product for any damage to avert inventory loss at the time of shipment.

- It is also advisable to group similar items in the same areas. Unique products, in particular, can have a single location.

- Find the right balance between the cost of storing a product and preventing a stockout. It is important to know the total cost of your stock, such as storage or perishable items (e.g. food-beverage), and pit that against the demand for the product and the cost of its unavailability to determine the right balance.

- A one-size-fits-all software system can seem appealing, but cloud based systems can grow with a business. It is, thus, essential to choose a system that can scale with your business.

- Finally, software is not a solution that will fix bad processes and will only efficiently control processes you have put in place. In order to make the most out of your inventory control system, automate your processes and improve your management techniques.

How to pick the right inventory control system?

inventory control is a vital part of any business. It keeps your company on track and ensures that you are staying out of debt. As you continue to grow, the amount of inventory will also grow which can be a difficult task to manage, making such management systems, which tilt in favor of inventory software as opposed to physical inventory management, are crucial to the functioning of your business. However, there are many different inventory control systems out there that will help you with effective inventory management and Inventory Optimization. Let's take a look!

You have a hard time tracking your inventory and you are not sure if you have enough to sell

Zip Inventory will help you keep track of what is in stock, when it was sold, and where it went

The best inventory control systems for small businesses

Inventory control systems are used by small businesses to keep track of their inventory items. The rate at which the business sells, buys and receives products impacts the ability to provide timely customer service and ensure proper stock levels. In addition, these systems allow for remote access of purchase orders and inventory to make it easier for employees to manage the company's resources. There are many different types of inventory management systems that small businesses can use. Some of theBest Inventory control systems are Orderhive (free for Shopify users), InFlow (14-day free trial), Lightspeed Retail (14-day free demo, no credit card needed), Zoho Inventory (available for free demo), and Upserve, among others.

inventory control systems versus inventory management

Inventory management systems and inventory control systems are two different things. Inventory management is the process of monitoring an organization's inventory and using a number of strategies to make sure that inventory levels are correct. Inventory control systems, on the other hand, are designed to monitor the movement across multiple locations and through any manufacturing or supply chain process, with options for electronic tagging, barcoding, and Radio Frequency Identification (RFID) technology.

It is important to know which is better suited to your business so you can make the most of the available solutions to manage your inventory and increase profitability.

It is hard to keep track of inventory when you’re selling out of your trunk

Zip Inventory’s guide of inventory control systems will help you organize your inventory and make sure that it stays in check