Optimize Business Performance with Effective Inventory Control

If you're currently working in a company, you're probably familiar with the concept of inventory control. In any company, there is always a stock of products known as inventory.

This inventory consists of goods and resources stored in a warehouse or storage facility to be used by the company in the process of buying and selling to consumers.

The inventory stored in warehouses typically includes raw materials, semi-finished goods, and finished products. This inventory is stored in warehouses so that its quality and standards can be monitored before it is released to the market. This activity is known as inventory control.

Inventory Control is

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Inventory control is a business activity commonly undertaken by entrepreneurs with the aim of providing the necessary goods during the production process to run smoothly and reduce potential risks. The risks mentioned include shortages of goods during the production process, which could enable the company to achieve relatively large profits while keeping storage costs low.

Management of inventory must be balanced. If you have too much inventory or overstock, the costs of storing and maintaining your products will be high. This can lead to increased business expenditures and waste.

Conversely, if product stocks are too low or out of stock, then the agreed-upon product delivery times with customers will be delayed. This delay can cause customers to switch to other companies.

Functions of Inventory Control:

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For manufacturing companies, inventory control offers various features that are highly beneficial in meeting the company's needs, including:

1. Serving as anticipation in case there is a delay in the distribution process or delivery of raw materials or goods needed by the company.

2. Anticipating situations where customers may order the wrong product and need to return it.

3. Acting as a preemptive measure in case of sudden inflation or price increases of goods.

4. Leveraging quantity discounts for purchases made.

5. Utilizing inventory control to store raw materials and products produced for a certain period or season, providing convenience for companies facing out-of-stock situations in the market.

6. Providing maximum service to customers by ensuring the availability of goods needed by them.

Inventory Control Strategies:

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Inventory control is an activity aimed at controlling the availability of goods and products and maximizing inventory to generate high profits for the company. Controlling goods has beneficial goals for the company. In addition, production volume can be maximized more efficiently, and productivity value can be realized.

To manage products or inventory control, there are several methods or strategies that must be applied:

Optimizing the Reordering Process:

- Optimizing the procurement process to ensure accurate calculations of current stock availability.

- This strategy leads to space and cost-efficient warehouse storage.

Setting Minimum Stock Levels:

- Setting appropriate minimum limits to maintain the quality of goods and avoid losses.

- Helps manage time to replenish needed goods.

Regular Inventory Audits:

- Periodic inventory checks to determine the condition of goods in storage.

Benefits of Inventory Control:

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After understanding inventory control strategies, there are still benefits:

Balancing Demand with Inventory:

- Ensures smooth production through sales to consumers.

Minimal Operational Costs:

- Reduces operational costs, making it a sound financial decision for your business.

Ensuring Available Goods:

- Helps maintain the right inventory levels for future needs, providing convenience to customers.

That's a clear discussion about inventory control that you can implement in the operation of your existing business.