What are the advantages, advantages and disadvantages of inventory control? (Example)

Who I am
Marie-Ange Demory

vgr.com gamedesigning.org Reddit.com

Author and references

If you run a business or are thinking of starting your own business, it is essential to organize the processes that take place in it. You should not only manage your income, expenses or marketing, but also have an inventory control it gives you full knowledge of the goods you have.

Have this management it is vital to the stability and profitability of any business , do you want to know why and how to maintain good inventory control?

What are the advantages, advantages and disadvantages of inventory control?

What does an inventory check do?

Each company must know the quantity of goods or products it has to carry out its business. But it's not just about counting, an inventory check reflects also the date of purchase of each product, the time it was in stock, among others .

Having this data allows you to formulate better sales strategies, prioritize older merchandise, among other tactics. Inventories must be constantly monitored, through a control that allows you to have one overview of how your business is doing.

How to perform an efficient inventory control?

The truth is, there are several methods of keeping an inventory, such as FIFO or LIFO, among others. The choice between one and the other will clearly depend on the activity your company is dedicated to and its objectives.

You also need to think about the size of your company if it is very large you should assign this role to a worker and also to a specialized department.

If your business is still in the start-up phase and you have a smaller, more manageable inventory, you can assign this role to whoever is in charge of doing the different reports. You can also do it yourself by following these simple tips:

Read Discover the best WhatsApp challenges, games for WhatsApp and chains 2020

Define how you want to organize the physical space for placing the goods. Register the entry and exit of products through a registration form, this will allow you to save work time. Although physical books offer you advantages, it's best to keep your inventory in a spreadsheet.

What are the benefits of this control?

First of all, the essential advantage is knowing how much stock you have . This in turn will allow for efficient production management, which is based on evaluating what can generate the most "stock".

You will be able to coordinate the different areas of the company; purchasing, sales, production, financial and operational area, allowing better control over blocked goods.

You will also be able to have an efficient management of purchases, by carrying out a market analysis you will be able to determine the goods you need to store the most . Finally, you can reduce business losses by avoiding obsolete, deteriorated or lost merchandise.

Are there any downsides?

Any inventory control method you apply in your business can have some drawbacks if it's not done correctly.

If your check indicates only the quantity of production but not its quality, you may have losses by not realizing this detail. This can especially happen in food places.

Carrying a fully automated inventory could generate detachment from your product, which you don't see or hear for yourself but only on the screen.

Final recommendations on inventory control

There are several methods for inventory control and it is essential that an assessment is carried out that allows you to recognize which is the most suitable for your company.

Read Solution: "Instagram does not work, does not load or keeps loading in the Home logo"

Remember that you should always do a physical count at least once a year , regardless of the method you use. It is necessary to constantly monitor the place of storage, in order to guarantee the products, avoiding deterioration that may occur due to humidity or any external factor.

add a comment of What are the advantages, advantages and disadvantages of inventory control? (Example)
Comment sent successfully! We will review it in the next few hours.