What is
Inventory control?

Inventory control or Stock control is a process that helps in managing the inventory and ensures that optimum stocks are available in good condition to fulfill customer orders without fail. Businesses can avoid product spoilage, cut down on the inventory carrying costs, increase revenue by making insightful business decisions when the inventory is under control using the right stock control methods.

Importance of Inventory control system

Inventory control is essential to maintain stocks accurately and boost the cash flow by having the right set of products, in the right place, and at the right time to satisfy the customer needs. Having the right inventory control tool, inventory planning becomes easier that helps in streamlining all the operations and have complete retail inventory control. It ensures the stock flow is optimized by forecasting the fluctuating demands and helps in offering the best customer service without any compromise over their needs with the right stock control system.

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How can Inventory control systems help businesses?

Inventory control plays a vital role in determining the success / failure of any business. A right Inventory control system helps businesses,

Achieve operational flexibility

Improve production efficiency

Strengthen competitive ability

Reduce inventory carrying costs

Foster economic efficiency

Boost revenue with high turnovers

Eliminate operational interruptions

Utilization resources effectively

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Advantages of Stock control system

The prime goal of inventory control is to expand profits by adopting different methods of inventory control that help in having an optimized inventory. When businesses understand what is inventory control and start working to achieve it, they can start enjoying innumerable benefits by managing their inventory effectively.

Meet your customer's demands and maximize your profit levels by eliminating the interruptions in production

Plan the inventory based on the risk of loss due to deterioration

Avoid shortage of materials and guarantee smoother production operations

Increase sales through improved customer service

Reduce the costs spent on labor associated with inventory management

Control the inventory proactively by having a competitive edge in the market

Minimize the storage costs by having an optimized inventory and utilize the space effectively

Plan the purchases based on the customer's needs and demands

Sell more by knowing the customer purchasing trends in the marketplace

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Inventory control vs Inventory management

Inventory control and Inventory management are the two major aspects that might seem similar, however contribute to improving inventory efficiency in their own ways.

Inventory control

Inventory management

Inventory control

Focuses on the inventory that is currently available in the store / warehouse

Involves operations related to maintaining the inventory with regular tracking of stock flow, stock audits, and order fulfillment

Ensures the stock available is in good quality that includes checking the condition, storage timelines to prevent expiry / damage / spoilage

Inventory management

Manages the entire lifecycle of a product from procurement, storage and sales

Involves operations related to managing the inventory primarily including demand forecasting, and replenishment

Having the right stock available in the right quantity at the right place and time with data-oriented decision-making and reordering methods

Challenges of Inventory control

Lack of visibility over stock movement from multiple sales channels

Irregular and manual stock counting with inaccurate reconciliation

No access to real-time data to take on time and data-driven decisions

Improper stock arrangement that makes storage and picking difficult

No control over human errors due to manual entries across operations

Inventory challenges

Types of Inventory control systems

Primarily, inventory control systems can be divided into two types.

Perpetual

Periodic

Perpetual Inventory System

A perpetual inventory system keeps track of the stocks in real time with stock audits done regularly. Tracking the movement of stocks at any point is easy with a system that helps in accessing the real time data continuously. Stocks can be maintained efficiently as stock counting is done with digital solutions, it helps in identifying the variance, prevent stock outs, and take on-time and right business decisions as the data remains accurate across operations. It is possible to manage stocks that come in and go out across complex or multi-location chain stores instantly with the right tool having a perpetual inventory system. Businesses can plan strategically, detect malpractices, take decisions driven by data to maintain an optimized inventory.

Perpetual

Periodic Inventory System

In a periodic inventory system, audits are occasionally planned and stock counting is done to verify the stocks at the end of a time frame. Here, there are no real time stock updates happening and is sought after by businesses that do not have enough resources and technology to run stock audits regularly. And so, stock counting generally happens only once a quarter or even once a year. A Periodic inventory system looks economical at first, but might cause greater inventory losses when the gaps in inventory like overstocking, stock spoilage, stock outs, theft etc. aren't identified and fixed on time. Since the audits are not frequently happening, it becomes challenging to have an optimized inventory with no visibility over the discrepancies between the system and the physical stocks.

Periodic
PerpetualPeriodic

Key features of Inventory control system

  • Plan Smart purchases
  • Categorize stocks
  • Stock audits
  • Inventory analysis
  • Dead stock clearance
  • Sales and Purchase returns
  • Control over expiry, damage and wastage
  • Refilling
  • Execute Smart purchases

Plan Smart purchases

Analyze the trends with real-time data by doing perpetual inventory audits, and gain insights into every product value. Know the sales trends well, understand the demands and determine reorder points with good knowledge and visibility.

Categorize stocks

Categorize the stocks well as it helps in having a proper product distribution, easy and comfortable stock counting to data-identify the stock discrepancies and movement.

Stock audits

Evaluate the stocks properly with regular stock counting, as it helps in eliminating the back order scenarios where one has to order the items due to lack of supply which might disturb the customer satisfaction due to the unavailability of items on hand at the time of sales.

Inventory analysis

Analyze your inventory regularly to understand and bridge the gaps so that the supply can meet the demands. Stock analysis helps you know what and when the replenishment of stocks can be done to avoid interruptions. Inventory analysis can be done better by understanding the FSN (Fast, Slow, Non-Moving) analysis, where you can identify the fast-moving, slow-moving, and non-moving stocks. This analysis helps to get rid of the non-moving inventory and avoid the undesirable inventory carrying costs.

Dead stock clearance

Before restocking you have to analyze and clear the dead stocks so that you do not end up losing the precious space to store these products. When you analyze and clear these unwanted dead stocks you can save more on storage, cost spent on equipment etc. Proper analysis prevents you from being struck up with the dead stocks again and helps you know the top selling products and order based on the customer needs and demands.

Sales and Purchase returns

The purchase returns and allowances, purchase discounts, sales, and sales returns have to be made clear so that the inventory account balance remains accurately. Making the sales and purchase returns at the right time prevents inventory losses including theft, spoilage, or other losses.

Control over expiry, damage and wastage

Severe inventory loss might occur due if the expiry, damage and wastage stocks aren't taken care of. Having good visibility over the stocks with frequent stock counting helps in analyzing and preventing the loss. Improper packaging, poor handling during transportation etc might result in the spoilage of stocks. However, proper care, and timely monitoring will help in getting control over the stocks.

Refilling

Stock refilling has to be done dynamically by analyzing the stock levels in the racks and shelves. By understanding the inventory, every item must have a minimum and maximum quantity set in advance, so that it is possible to refill the stocks before the item runs out of stock. On time refilling will help you never miss out a sale and boost the customer satisfaction levels.

Execute Smart purchases

It is highly essential to have stocks in hand stored in your warehouse so that whenever an item reaches the minimum level, they can be refilled immediately in the store. Automatic reordering helps you maintain an optimized inventory so that the purchases can be made at the right quantity and at the right time.

Key features of Inventory control system

Plan Smart purchases

Analyze the trends with real-time data by doing perpetual inventory audits, and gain insights into every product value. Know the sales trends well, understand the demands and determine reorder points with good knowledge and visibility.

Categorize stocks

Categorize the stocks well as it helps in having a proper product distribution, easy and comfortable stock counting to data-srcentify the stock discrepancies and movement.

Stock audits

Evaluate the stocks properly with regular stock counting, as it helps in eliminating the back order scenarios where one has to order the items due to lack of supply which might disturb the customer satisfaction due to the unavailability of items on hand at the time of sales.

Inventory analysis

Analyze your inventory regularly to understand and bridge the gaps so that the supply can meet the demands. Stock analysis helps you know what and when the replenishment of stocks can be done to avoid interruptions. Inventory analysis can be done better by understanding the FSN (Fast, Slow, Non-Moving) analysis, where you can identify the fast-moving, slow-moving, and non-moving stocks. This analysis helps to get rid of the non-moving inventory and avoid the undesirable inventory carrying costs.

Dead stock clearance

Before restocking you have to analyze and clear the dead stocks so that you do not end up losing the precious space to store these products. When you analyze and clear these unwanted dead stocks you can save more on storage, cost spent on equipment etc. Proper analysis prevents you from being struck up with the dead stocks again and helps you know the top selling products and order based on the customer needs and demands.

Sales and Purchase returns

The purchase returns and allowances, purchase discounts, sales, and sales returns have to be made clear so that the inventory account balance remains accurately. Making the sales and purchase returns at the right time prevents inventory losses including theft, spoilage, or other losses.

Control over expiry, damage and wastage

Severe inventory loss might occur due if the expiry, damage and wastage stocks aren't taken care of. Having good visibility over the stocks with frequent stock counting helps in analyzing and preventing the loss. Improper packaging, poor handling during transportation etc might result in the spoilage of stocks. However, proper care, and timely monitoring will help in getting control over the stocks.

Refilling

Stock refilling has to be done dynamically by analyzing the stock levels in the racks and shelves. By understanding the inventory, every item must have a minimum and maximum quantity set in advance, so that it is possible to refill the stocks before the item runs out of stock. On time refilling will help you never miss out a sale and boost the customer satisfaction levels.

Execute Smart purchases

It is highly essential to have stocks in hand stored in your warehouse so that whenever an item reaches the minimum level, they can be refilled immediately in the store. Automatic reordering helps you maintain an optimized inventory so that the purchases can be made at the right quantity and at the right time.

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Methods of Inventory control

It is highly essential to pick the right stock control system to stay ahead of complex inventory problems that might occur in your business. There are different methods businesses use to get inventory control like,

Paper and Pen

Spreadsheet

Inventory control solutions

However, it is your responsibility to define your business needs and pick the right method to gain control. You can efficiently and accurately track your stocks only if you select the best inventory control method by understanding the pros and cons.

Paper and Pen

Counting the stocks manually using a paper and pen, is the oldest method which might be economical, but doesn't guarantee accuracy which may lead to several losses to your business. It has numerous touchpoints related to human errors, time, and efforts which affects productivity, accuracy, and real-time tracking and stops you from gaining control over your inventory.

Spreadsheet

Using spreadsheets can be a cost effective way of inventory control, however it is not handy to use. Some major drawbacks of this method include no real time tracking, risk of human mistakes, difficulty in managing inventory from multiple locations, and limited user interface that adds confusion to the users. Hence it becomes difficult to track employee efficiency, stock accuracy and achieve inventory control.

Inventory control solutions

Choosing the best inventory control solution helps you tackle all your complex inventory needs and achieve complete control over your inventory. It helps you meet your company’s needs and contributes to its growth by organizing your business activities. An inventory control software/app, helps you have real time visibility over your stocks, streamline the processes and track the stocks across departments and locations. Automation with digital solutions offers increased productivity, zero errors, and helps you have an optimized inventory with complete control.

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Inventory control solution, the best of all the methods!

To be the best in your business and increase customer loyalty, it is a must to adopt technology to maximize productivity, efficiency, and profitability. Start saving time by eliminating the manual methods, cut down unwanted costs involved, and automate to meet the customer demands with ease having retail stock control in place.

With inventory control solutions you can,

Maintain right stock levels

Make right purchase decisions

Mitigate inventory losses

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Why choose Gofrugal's Stock control system to gain inventory control?

Gofrugal's Stock control system helps you manage your stock levels efficiently by increasing the transparency over stock movement, minimizing costs, and maximizing profits with increased sales. Gofrugal offers an exclusive inventory management mobile and web application GoSure, which helps you gain 100% control over your inventory. GoSure guarantees accuracy in every inventory operation ranging from purchase inwards, stock allocation, stock auditing, stock refilling, and order processing. Gofrugal's stock control software increases employee efficiency, improves quality, and helps your customer come back to your store every time with delight.

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Join our customers who control their inventory for countless success!

With Gofrugal POS and GoSure app I'm able to monitor the stock auditing across 12 outlets centrally. Now we have complete stock control with increased employee productivity and there is no out of stock as well over stocking.

Shivling Supermarket

Mr. Senthil Kumar, Manager

With Gofrugal's ERP, my inventory is always up-to-date, and reordering with the right suppliers happens automatically. I've never lost customers due to out-of-stock after implementing Gofrugal.

Thayagam Shopping Mall

Mr. Arjun, Owner

Accomplishing accurate stock transfer is a challenging task. With Gofrugal ERP, we have an accurate stock transfer that saves time, labor costs, and unwanted paper costs.

Bhakti Pujapo

Mr. Manshu Parik, Accounts Manager

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