Any company that involves the management of a supply chain as a part of its functioning can benefit greatly from inventory control. The benefits of inventory control start right from the supply of raw material, extending to the shipping of the final product to the customers. Along with ensuring that every stage involved in this process is carried out smoothly, inventory control also streamlines other functions of the business such as accounting, manufacture, planning etc., resulting in an overall boost in the productivity.
The benefits of inventory control for business are listed below-
- Information on inventory level- By updating data related to the level of raw materials, new supplies, and other items, inventory control ensures that the purchase department is well-informed about the need to purchase materials at the right time. This helps in enhancing customer support in the long run. It is important to ensure that there is no imbalance in either way- less or more- to the inventory levels at which replenishment is required.
- Functioning of retails sales- As a retail salesman, one’s efficiency greatly relies on the accuracy of the inventory database. An efficient inventory control system ensures that the data provided by this database is not just easily accessible to the sales personnel, but also accurate, and updated in time. It is only then that the salesmen can be sure that the product they are selling to the customers is available in the inventory.
- Accurate planning of production- A large part of production is the planning that is undertaken to determine the products that need to be manufactured on a daily basis. This is directly dependent on the information derived by inventory control, which involves the current status of the inventory, the items in stock, the expected demand, etc.
- Keeping a tab on scrap data- Inventory control helps to minimize wastage by providing alerts to the management when the scrap levels exceed permissible limits.
- Shipping and timely delivery- The final processes of shipping and delivery are also highly reliant on inventory control. Knowing the inventory counts of goods that are available for shipping helps to ensure that shipments are accurately completed. Similarly, inventory control also plays a major role in ensuring that the customers receive their orders in time. This is made possible by streamlining all the processes, including planning, manufacturing, and production.
McLane Logistics Technology provides customized Inventory Management Software system for businesses to effectively manage their inventory functions. For more information, kindly visit them at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call at 1-800-989-7568.
