Always be aware that inventory of proprietary products is mandatory for the company, in this case specifically for the warehouse staff. Inventory control is a general term for activities performed regularly.
In the last few decades, inventory control activities have become quite time-consuming as the calculations are done manually. But now, thanks to the existence of various warehouse management system products, this one warehouse activity has become easier.
A little about the definition of inventory control
It was mentioned at the outset about general inventory control activities. You can understand this activity as an activity to ensure that the company’s product stock in the warehouse remains at a reasonable level.
This is done to keep the market supplied with products and to minimize the risk of product gaps in the market due to market fluctuations or errors in production estimates. This way, the product is always available in the market and customers can easily access it.
The inventory control function is
Also, since it’s an activity directly related to warehouse activities and product availability, some inventory control features won’t be far removed from the things mentioned before. In general, the function of inventory control is to ensure the availability of goods in the warehouse, but its function will be fully explained in brief points.
- Able to anticipate delays in delivery, both in raw materials needed in production and in finished products ready to be marketed
- Always ensure that the goods ordered are as required to minimize the risk of goods being returned or returned
- As a precautionary measure in the event of a sudden increase in the price of goods, the price of goods is controlled with guaranteed availability
Take advantage of purchases made in the previous period
Of course, being able to pick up seasonal raw materials that are only available at certain times, also goes hand in hand with the maintenance and treatment of these raw materials. Demonstrate the company’s commitment to providing the best service by ensuring product availability in the market
Looking at the points above, you can imagine that inventory control is an activity that serves a fairly broad function. Not only in terms of managing the company’s internal warehouse but also in terms of collaborating with suppliers and customers awaiting products on the market. For this reason, you must ensure that this activity runs smoothly so that all the functions described above can perform in line with the company’s expectations.
Know 5 effective ways to implement inventory control
When performing this activity, there are at least 5 methods that can be used. Later you can adapt the method used to the needs and circumstances of the company because each of these methods also has its peculiarities.
The first method is to enforce a zoning system for your warehouses. Grouping of pre-defined product categories can assist staff in entering item data. This can be done with precision, making it easier when retrieval is required. This zoning not only carries out a categorization but also includes the structuring of the storage area, the grouping of goods according to previously formulated provisions, and the necessary treatment of the individual articles. With this method, inventory control can be more optimal.
Quality control method
This method is used to process orders from suppliers that are received in the warehouse. All raw material stocks entering the warehouse must go through the QC stage to ensure that the orders are in the previously agreed terms. Inventory control using this method prioritizes product quality assurance or incoming or outgoing raw materials so that cooperation with suppliers and good relationships with customers can always be maintained.
Inventory tracking prioritizes the monitoring and tracking of all products and items entering or leaving the warehouse. This concludes with ensuring the location of the goods in the warehouse. Ideally, this process is performed in real-time to get up-to-date inventory data in the warehouse. The data using this method is considered valid, so it can serve as a reference for your business to make quick decisions about market conditions.
Set the reorder point method
As the name suggests, this method sets a certain limit of goods in the warehouse for repeat orders or repeat purchases. In this way, the inventory is available at all times. This method is suitable for companies that have products that are in high demand by the market or use raw materials in large quantities and continuously. When the commodity in question reaches the limit, orders or procurements can be made automatically, so the inventory control process tends to be more effective.
This method focuses on the process of selecting inventory items to continue managing. The main consideration is that not every item, whether the product or raw material, is always required in large quantities all year round and can bring business profits. If the goods are no longer profitable, the availability of the goods must be corrected and reconfirmed. If there is an additional economic burden on the company, it is possible to stop the availability of goods in the warehouse.
That was a little explanation about inventory control that can be done in the company you manage. Considering that the process and selection of inventory control methods are important, it is highly recommended that the discussion be carefully and detailed. Hopefully useful and hopefully the best stock management method you have!