Comprehensive Guide to Effective Inventory Control

An inventory control system is a digital platform designed to monitor stock quantities, purchase orders, sales, and deliveries. It is widely used in manufacturing for creating work orders, bills of materials, and other production documentation. Organizations rely on this system to avoid overstocking and stockouts. Essentially, it organizes inventory data previously handled via paper records or spreadsheets. Core components such as reorder points, asset tracking, service management, product identification, and stock optimization work together to maintain an accurate inventory overview.

Here's some essential information about inventory control.

What are the main features of an inventory control system?

An inventory system identifies every item and associated details, including barcodes or asset tags.

It employs hardware tools like handheld scanners and smartphones with scanning apps to read these labels.

Key functions include maintaining a central database, generating reports, data analysis, demand forecasting, and more.

It also requires documented policies for labeling, reporting, and inventory techniques such as FIFO, ABC analysis, or Just-in-Time methodologies.

Staff trained in these procedures are vital for efficient management.

Advantages of using an inventory control system

Lacking a proper system can lead to chaos in product flow and record keeping.

This system enables centralized tracking of assets and stock levels.

It offers a unified view of item locations, supplier details, and current stock quantities.

It helps identify fast-moving and slow-moving items, improving reorder accuracy.

Overall, benefits include better cash flow, enhanced reporting, reduced storage and labor costs, less dead stock, improved organization, transparency, and stronger supplier relationships.

What is warehouse inventory management?

Warehouse management requires specialized features focused on location tracking.

The main goal is quick and easy retrieval of items within the warehouse.

Features include advanced barcode support (QR codes), multi-location tracking, shelf and bin management, and order picking assistance.

This system facilitates reordering, inventory picking, and setting restocking thresholds to prevent shortages.

Top inventory management software options include:

Zoho Inventory

HDPOS Smart Accounts and Billing

MARG ERP 9+ Inventory System

CAMS Exact

Astral Inventory System

EAMbrace Inventory

Best practices for inventory management include:

Establishing clear location identifiers, labels, and unique item IDs.

Setting up units of measurement, initial stock counts, and policy-driven procedures.

Choosing software that monitors activity accurately and efficiently.

Developing company-wide policies supported by skilled personnel.

Implementing a comprehensive setup that integrates processes, people, and technologies for continual efficiency gains.