An inventory control system is a technological solution that maintains and tracks a company’s commodities as they go through the supply chain. Using this technology, purchasing, shipping, receiving, warehousing, and returns will be integrated and managed in a single system.

The most effective inventory control system will automate many manual tasks. It will provide an accurate view of your inventory, where it is, and when you need to reorder or maintain ideal stock levels.

Types of Inventory Control System

Systems for inventory control have changed. Earlier methods were essentially just spreadsheets and currently, machine learning is automating inventory control to a greater extent. Two main categories of inventory control systems exist.

Periodic Inventory System

A physical count of the inventory is used to update a periodic inventory system at regular periods. A company using this method will not know how many products it has until the physical count is completed.

It’s simple to see how this could be an issue when it comes to fulfilling orders. When a consumer wishes to buy, you have to physically verify your inventory to determine if you have it to sell.

Manual stock counting is a time-consuming and labor-intensive activity. And must count every single SKU. Manual stock counting is a time-consuming and labor-intensive activity.And must measure every single SKU.

A huge store would struggle with this. A periodic approach is only appropriate for small enterprises with limited inventory.

Perpetual Inventory System

When a product is sold, the barcode is scanned and the product is removed from a global inventory database. When a new one arrives, it is scanned and entered into the inventory database. Each system component has access to the same database and information.

A perpetual inventory eliminates the need for human inventory counts and offers a highly detailed view of inventory changes and an accurate accounting of inventory levels. It is appropriate for all business sizes and essential for retailers with significant sales volumes or several locations.

Essentials of Inventory Control System

Here you will find the essential tips for effectively managing your inventory for increased profitability and cash flow management.

Prioritize your inventory

Categorizing your inventory into priority groups will help you understand which things you need to order more of and more frequently and which are crucial to your business but may be more expensive and move slower. Experts recommend categorizing your inventory into A, B, and C groupings.

Items in the A group are more expensive and in short supply. Items in the C category are low-cost items with a high turnover rate. The B category contains things that are reasonably priced and move out the door more slowly than C items but faster than A ones.

Track all product information

Maintain a record of the information for each item in your inventory. Including SKUs, barcode information, suppliers, countries of origin, and lot numbers are necessary.

You should also consider following the pricing of each item over time to be aware of factors that may affect the price, such as scarcity and seasonality.

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Audit your inventory

Every business does a comprehensive count depending upon its needs. Whatever frequency you choose, make it a point to physically count your inventory frequently to make sure it corresponds to what you think you have.

Evaluate the performance of suppliers

An unreliable supplier can cause issues with your inventories. If you have a supplier who is consistently late with deliveries or under-delivers, it’s time to take action.

Discuss the concerns with your provider to determine the source of the problem. Be ready to change partners, deal with erratic stock levels and maybe run out of inventory.

Apply the 80/20 inventory rule

80 percent of your gains typically come from 20 percent of your stock. For the remaining 20% of products, give inventory management top priority.

The entire sales lifecycle of these items, including how many you sell in a week or a month, should be properly monitored and understood. These are the goods that make you the most money; don’t neglect them.

When receiving stock, be consistent

When your figures don’t match up with your purchase orders at the end of the month or year, little variations in how new stock is received could leave you confused.

Assure that all employees that receive inventory follow the same procedures and that all boxes are confirmed, received, and unpacked in a single batch, precisely counted, and checked for accuracy.

Maintain sales records

It’s essential to keep track of what and how many items you sold while also updating your inventory counts on a regular basis. You’ll need to look over this information, though.

Do you know when particular products start to sell slower or less frequently? Is it the time of year? Does each day of the week have a specific item you sell? Are there any things that sell in groups frequently?

Understanding more than just your sales numbers and the big picture of how products sell is necessary to keep control over your inventory.

Order restocks yourself

Some suppliers offer to handle your inventory reorders. On the surface, this seems like a good thing because you save employees time and money by having someone else manage the process for at least some of your items.

Keep in mind, though, that your vendors might not have the same priorities as you. They want to sell off their inventory, whereas you want to stock the items that will make your business the most money.

Examine the inventory carefully and place orders for all of your goods replacements.

Invest in technology for inventory control

If your business expands, you’ll have to spend more time managing inventory than running it, or you run the risk of having stock out of control.

All of these chores are made simpler by effective inventory management software. Make sure you know what you need, that a software solution offers the metrics that are crucial to your company, and that it is simple to use before making your choice.

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Use technology that is easy to incorporate

Technology can assist you in managing stock in addition to inventory management software. You can keep on track by using tools like POS systems and mobile scanners.

Systems that cooperate should be given priority when investing in technology. It’s not the end of the world if your POS system can’t interact with your inventory management software, but it could take more time to move the data from one system to another, which makes it simple to wind up with inaccurate inventory counts.

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Features of Inventory Control System

The following are some of the most significant features of inventory management systems:

Centralized inventory management

A centralized inventory management system boosts team member productivity and communication. As a result, team members from various locations can interact with one another and work in sync.

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Tagging and barcoding

Manual data entry can lead to errors, but scanning the barcode saves workers a lot of time. The barcode feature is reduce to employee training sessions and budget value.

Traditionally, recording product data takes a lot of time and effort. The inventory management system has simplified it by giving barcoding and tagging features.

We shall have a program that is specifically design to satisfy such a requirement. The Nvntri program will take care of everything, from implementation to employee training.

Reporting of the business activities

The reporting of various company activities is one of the best features of an inventory management system. The management of an inventory-based firm necessitates that those in control stay informed about a variety of business operations, such as the driver’s location, the status of the goods, details regarding the shipment of the order, etc.

For effective reporting of tasks, you can incorporate a variety of tools in the inventory management software.

Nvntri reporting and analytics provide faster, more accurate insights into how well a firm is performing.

Forecasting of the inventory

You can keep track of which products are regularly in stock and which are not by using an inventory management system. This is a particularly advantageous way for keeping a great user experience while simultaneously making efficient use of resources.

You can create and manage all of your orders from a single spot, keep track of your inventory, and interact with well-known online marketplaces, shipping services, and payment gateways with a one-stop inventory management solution.

Alert regarding the inventory details

A stock-out alert tool is an excellent addition to an inventory management system. The software explains several potential consequences of low stock levels for a certain item in the notifications.

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Backup and security of the inventory control system

Regardless of the kind of your business, appropriate inventory control system backup and security are crucial to its operation. It has strong security layers that prevent hacking. In case an inventory software program gets hack, the records have a backup that business operators can access and use.

Nvntri respects retailers’ privacy and will not share their information with marketplaces or any other source at any cost.

Internet of things and cloud data software

Inventory management software is cloud-based software that can be accessed from any device. Furthermore, inventory management system software is IoT-driven, making it easy to record all inventory facts wisely and effectively.

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Inventory management software integration with other systems

Companies nowadays have adopted an ERP system, which has enhanced their productivity significantly. If ERP can connect with inventory management system software, the organization will gain greatly. Get the app right away because Nvntri has your back!

Inventory control system optimization

Having an optimized inventory control system makes it simpler for managers to operate and fulfill deadlines.

Using your website and app, enhance your sales with app integration. You may sync your data with the system using an all-in-one inventory management solution.

The product’s demand and supply

Inventory software helps business owners manage their inventory effectively. Managers efficiently manage the demand and supply of the company’s products. This is the reason why companies can bring in huge sums of money every year.

With Nvntri, you can concentrate more on the revenue and less on the fuss.