If you run a company or are thinking of setting up your own business, it is vital that you organize the processes that take place in it. You must not only manage your income, expenses or marketing, but also have inventory control that gives you full knowledge of the merchandise you have.
Having this management is vital for the stability and profitability of any company, do you want to know why and how to keep good inventory control?
What does inventory control do?
Every company must know the amount of merchandise or products it has to carry out its activity. But it is not just about counting, an inventory control also reflects the date of purchase of each product, the time it has been in stock, among others.
Having this data allows you to formulate better sales strategies, prioritize older merchandise, among other tactics. Inventories must be constantly supervised, through a control that will allow you to have an overview of how your company is doing.
How to do an efficient inventory control?
The truth is there are different methods to carry an inventory, such as the PEPS or the UEPS, among others. The choice between one and the other will depend clearly on the activity to which your company is dedicated 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 even to a specialized department.
If your company is still starting and you have a smaller and more manageable inventory, you can assign this role to whoever is in charge of making the different reports. You can even do it yourself by following these simple tips:
Define how you are going to organize the physical space for placing the merchandise. Register the entry and exit of the products through a registration form, this will allow you to save work time. Although physical books offer you advantages, it is best to keep your inventory in a spreadsheet.
What advantages does this control offer you?
First of all, the essential advantage is knowing how much merchandise you have. This in turn will allow efficient production management, which is based on the evaluation of what can generate more “stock”.
You will be able to coordinate the different areas of the company; purchases, sales, production, financial and operational area, allowing you better control over that detained merchandise.
You will also be able to have an efficient purchase management, carrying out a market analysis you will be able to determine the merchandise that you should stock the most. Finally, you will be able to reduce the company’s losses by avoiding obsolete, damaged or lost merchandise.
Are there disadvantages?
Any method of inventory control that you apply in your company can have some disadvantages if it is not executed properly.
If your control only indicates the quantity of production but not its quality, you could have losses by not realizing this detail. This can happen especially in food places.
Carrying a fully automated inventory could generate detachment about your product, that you do not see it or feel it for yourself but only on the screen.
Final Recommendations Regarding Inventory Control
There are different methods for inventory control and it is essential that an evaluation be carried out to recognize which is the most suitable for your company.
Remember to always do a physical count at least once a year, no matter what method you use. You must constantly supervise the storage place, in order to guarantee the products, avoiding deterioration that may occur due to humidity or any external factor.
