Inventory control, also called stock control, is the process of ensuring that the right amount of supplies are available in an organization. With proper internal and production controls, the practice ensures that the company can meet customer demand and offer financial elasticity.
Inventory controlis the process of maintaining a company's stock level to meet customer demand and minimize costs. This involves tracking inventory and maintaining goods.
It also includes making decisions to take advantage of your actions and planning purchases. This type of system generates more fraud because there is nothing that can track inventory between physical counts, reducing liability between inventories, and because it is more difficult to determine where inventory discrepancies occurred. Not all companies have all four types of inventories, but most businesses require at least one of these inventory categories. While some companies that place just-in-time orders may have extremely small inventories, almost any company requires some type of inventory, which is best managed through inventory control systems.
For example, if you want your physical inventories to be completed over a weekend, determine if your employees should have scanners that speed up their work. However, experts agree that, although physical inventories are not common, some manual inventory process must be implemented to complement a perpetual system. Companies with large inventories, complex warehouses, or that sell on multiple channels may have many moving parts in their inventories. The challenges of this type of system occur when it is used without also carrying out physical inventories.