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Inventory control aims at two basic objectives: to minimize the cost of storage and to provide excellent customer service.
The availability of an excellent stock and the constant and correct balance of stocks are fundamental for the company’s profitability. The reason is that stock outages could cause delays or complaints from customers.
Moreover, an overstock is equally undesirable because it involves an additional cost and the risk of obsolescence of the goods.
Care must be taken not to confuse physical inventory with accounting. Physical inventory concerns the concrete organization of the goods within the warehouse. The accounting one, however, is related to the economic value of the goods themselves.
The control of the physical inventory has the objective of guaranteeing the concordance between the units registered in the system and those actually present on the racks. Any differences may be caused by a picking error, theft or another cause and must be resolved.
For an optimal control of the book inventory, it is essential that the physical inventory is well detailed. If you ignore the products actually in stock, it is impossible to attribute an economic value to the company’s stock.
Inventory control aims to facilitate warehouse operating cycles. An optimal organization of goods has a positive effect on all plant activities.
The exact knowledge of the availability of items in stock increases efficiency and, consequently, improves the image of the company. Order replenishment and preparation can be organized or changes in demand can be easily addressed. The company stocks enough merchandise to satisfy customers even when there is an increase in sales.
Inventory control also allows you to optimize the use of warehouse resources. For example, the essential items for the provision of the service are stored only in a limited space.
Inventory management is often overlooked in an enterprise, although inventory could be compared to a cash sponge that could otherwise be used to grow a business. Therefore, in order to achieve operational efficiency, it is very important that organizations constantly optimize and plan the amount of inventory, i.e. minimized capital investment while maintaining or even improving their availability.
Taking help of inventory management services of CAC will help equip your management and line personnel with the fundamentals and techniques for analysing and controlling inventory levels – from cost reduction techniques to day-to-day materials management.
The experts in consulting in the field of optimization of the system of goods and material assets will help you answer such fundamental questions as the optimal period for placing an order and its volumes, as well as introduce the latest innovations in this area.
The professionals of CAC, with unique practical experience, help overcome barriers to business in the face of rapidly evolving technologies and increasing volatility in the economy, by developing strategies for sustainable development, introducing innovations, transformed organizational systems, reducing production costs and improving the quality of customer service.
CAC helps in building teams that challenge traditional thinking and drive change and make decisions that can lead to business success and organizational sustainability. We recommend you to consult the expert team of CAC to improve your organisational processes.