5 Problems Inventory Control Fixes

When it comes to making sure your business is working correctly, there's a huge necessity of maintaining everything under control. 

And what happens in your inventory is a huge part of doing it right. 

But what happens when you suddenly realize that the piece of equipment you need to finish your products is nowhere to be found?

Or that there's no space in your shelves right when a new batch of products is about to arrive?

That's when we need to discuss how important inventory control is.

And no, it's not the same as inventory management.

What's Inventory Control?

You can see it as the method you follow to manage your stock. 

It's a series of processes companies implement to manage the stock they have at the moment in your warehouse. 

Simple as it might sound, inventory control plays a crucial role in protecting your company's ability to meet the market's demand levels. 

Inventory control might include carrying out the following activities: 

• Keeping accurate counts of each product
• Tracking where items are stored within your facility
• Identifying and addressing damaged, expired, or missing stock
• Preventing theft, loss, or misplacement

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Done right, inventory control can be fundamental to reduce errors, avoid stockouts or overstocks, and improve your overall order fulfillment accuracy.

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Key Differences with Inventory Management 

Yes, you could be forgiven if you ever think that inventory management and inventory control are the same thing, after all, both work to make your stock function better.

But…

Here's the thing 

Inventory management and inventory control are indeed different practices, targeting unique aspects of the whole inventory process.

Inventory management 

• Works around planning basically, which includes forecasting demand, purchasing all the necessary stock, and developing strategies to optimize inventory levels over time.
• Essential for the long term, just like with any other business strategy.
• Aims to meet customer demand as perfectly as possible, while at the same time searching for ways to minimize excess inventory and costs. 
• Relies on certain tools like forecasting, inventory planning software, and purchasing systems.
• To measure success, inventory management uses relevant KPIs, focusing on inventory turnover, carrying costs, stock availability, and order fulfillment rates. 

Inventory control

• Deals with the products you have available in your warehouse, checks for item condition, and where they're stored.
• It is definitely seen as a short-term activity, centered around operations.
• Among its tasks, you'll find: stock counting, labelling, shelf arrangement, and monitoring.
• Inventory control’s main goal is to keep stock levels accurate so that they match your inventory system.
• Works with barcode scanners, RFID, warehouse management systems, and other technologies.
• Key metrics include stock accuracy, shrinkage rates, and cycle count results.

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5 Problems Inventory Control Can Help You With 

Stock inaccuracy 

You put a product on your website, shining under a marketing campaign, and people get excited and start making orders. 

The only problem?

The moment you go over your stock, you find out the product is not available. 

That's bad news for a dozen reasons, right?

You can bet your customers think the same.

Inventory control helps keep your records aligned with reality through regular checks, counts, and real-time tracking.

Stockouts and overstocks 

We hear it from procurement leaders all the time. 

One of the most challenging decisions businesses need to make lies in figuring out the exact amount of stock your production needs.

Not having sufficient visibility into your stock can lead you to face problems trying to keep customer demand and spending more money than necessary. With inventory control, you can understand what's working and what needs to be fixed before it's too late.

Misplaced items

There's a reason why warehouses have a reputation sometimes for being a chaotic place. 

A poor warehouse structure and weak oversight. 

Items catalogued as missing make your staff lose time as they struggle to understand why product X is not where it needs to be.

Carrying out audits focused on inventory control is one of the ways you make sure every product has an allocated space that makes sense for your business.

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Shrinkage 

Anything that reduces your stock is considered to be shrinkage. Sometimes, as we mentioned above, products can disappear due to bad organization, in other cases, maybe something illegal could be going on. 

Or if you work with perishables, it could be that you didn't notice there was an expiration date to look at.

Whatever the reason, working with inventory control systems helps you to understand potential risks around the way your warehouse is managed.

Inefficient processes 

The culprit behind the bad reputation of inventory management?

Inefficient processes 

Without good control, staff often spend extra time searching for items or re-checking stock levels. Solid inventory control cuts down on wasted steps and allows your team to work more efficiently.

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How to Improve Your Inventory Control?

Inventory control is fundamental to keep your operations running on schedule. 

But businesses have multiple priorities, so it's kind of normal to find some weak points in your processes.

Here's how you can solve them.

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Set up clear locations.

Pretty simple but with a wide range of positive impact.

Define specific storage areas where you can store your products according to the requirements of your operations.

This reduces the chances of items being misplaced and makes it easier to track movement accurately.

Work with RFID

One of the problems inventory control faces is how much time it can demand to manually check every single item of your inventory. Working with technology like RFID is a smart choice if you are after reducing mistakes and making things move faster.

Make it regular 

Inventory control doesn't have to be a headache that you keep postponing. 

Instead of waiting for an annual review, schedule smaller, frequent counts of different product categories. This will not only save you time at the end of the year, but it will also provide you with a roadmap to detect errors early.

Standardize 

Whenever you receive a product, you need to make sure that the item is carefully reviewed, check it, count it, and register it as expected so you can prevent defective products from entering your inventory records.

Use inventory management software

This is critical 

And regardless of what you might believe, it's not only reserved for the big names out there. 

Even small businesses benefit from using systems that automate the whole inventory process. Updating stock levels as it moves. 

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Types of Inventory Control Systems 

 Periodic Inventory System

In a periodic system, you don’t track inventory constantly. 

Instead, you count stock at regular intervals, weekly, monthly, or even annually. During those intervals, you’re operating without exact real-time data.

How it works:

• You perform a full count at set times
  
  
• Purchases are recorded, but inventory levels aren’t updated until the next count.
  
  
• Useful for smaller businesses with lower volume
  
  

Pros:

• Simple and low-cost
  
  
• No need for complex software or scanning tools
  
  
• Easier to implement if you’re just starting out
  
  

Cons:

• Inventory data is often outdated
  
  
• Higher risk of stockouts or overstock
  
  
• Discrepancies may go unnoticed until the next count.
  
  

Perpetual Inventory System

A perpetual system updates inventory in real time. Every time an item is received, sold, or moved, the system records it automatically.

How it works:

• Uses barcode scanners, RFID, or software integrations
  
  
• Tracks inventory movement continuously
  
  
• Common in businesses with higher volume or multiple locations
  
  

Pros:

• Accurate, up-to-date stock data
  
  
• Easier to spot shrinkage or discrepancies quickly
  
  
• Supports better forecasting and planning
  
  

Cons:

• More expensive to set up and maintain
  
  
• Requires reliable systems and training
  
  
• Still needs occasional physical checks to confirm accuracy.

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