Benefits of Good Inventory Control
Stay on top your inventory with comprehensive stock control
Do you enjoy doing your own stock control? Very few people do, which often means something falls through the cracks, leading to the loss of money. Good inventory control is difficult when you don’t have a foolproof system in place to install clearer processes that help improve cash flow, downgrade time spent handling goods, and promotes more time for your clients. These benefits allow you to focus on truly satisfying customers and creating a positive profit margin, which is also a direct result of great service delivery. It’s a win-win situation for all involved.
Inventory management is largely about categorising your stock that is normally located in different places of your store or warehouse, and then determining how much has gone out and what has stayed instore. This may sound easy enough, but when you’re new to this kind of practice, or your company has just expanded dramatically, you’re going to be dealing with an overabundance of products and client demands. This is when you consider all the work involved in the process of stock management and how it can cost you a fortune if done incorrectly.
How do you streamline your inventory and make the entire process easier to manage? The answer is: outsourcing. Handing over your inventory management to a company that focuses on stock logistics is a savvy and strategic business move that has multiple benefits.
You should know the percentage of stock available at any given time and exactly where the stock has gone. You can do it yourself or follow the lead of some companies, and use outsourced inventory control with a 3PL company to ensure comprehensive stock level management. You pay holding costs to a company who takes on the administration duties. This ensures that your stock is consistently replenished when it needs to be and is delivered on time, while maintaining optimal inventory levels with a comprehensive unique stock management system. Or you could do everything yourself, which means you may be looking at potential stock loss.
Reduces Stock Loss
Correct stock control means a reduced risk of stock loss due to outdated items. It obviously depends on the kind of materials your company deals with, but you can maintain fresh or trending stock without losing money on products that consumers no longer require. Your logistics company will move the outdated stock first and a system allows them to understand when and why stock moves.
Seamless Production Operation
If you’re a manufacturer, then stock control of materials is pivotal to good business. Inventory management allows for a more streamlined control of stock between the warehouse and production line, making sure there are no material over-orders or shortages, which have their own problems.
Duplicate orders are quite common, however, they cost a small fortune when you think about the extra administration, time spent, and money required to sort it out. Excellent inventory control means separating the purchase department from the outgoing stock department. One line of communication between the two ensures there is no over-ordering of anything.
Prevents Imbalanced Fluctuation
This is largely for companies who manufacture products. Materials can sometimes be over or under-ordered when there’s an unforeseen break in production. Good inventory control will ensure that additional materials are not ordered when you have a sudden breakdown in machines, labour strikes or loss of power supply.
In order to ensure your company gets the best from stock control, it is suggested that you outsource to a 3PL company that will look after your best interests – your products.