Small businesses face a constant challenge of managing inventory efficiently to meet customer demands while minimizing costs. However, they lose 11% of their annual revenue due to poor inventory management (stockout and overstock situations). A stock control system is an effective way to manage inventory operations and reduce errors.
In this guide, we will explore the basics, types, benefits, and more of the stock control system. So, let’s jump right to it.
What is a Stock Control System?
A stock control system, also known as an inventory control system, is a set of tools that a business needs to track and manage its inventory. It helps monitor stock levels, manage reorder points, and track stock movements in real-time.
In the past, the stock control system was all about a pen and paper or an Excel spreadsheet. However, the digital era has turned this system into a combination of methods, software, and hardware.
For example, barcode scanners and RFID technology automate data capture, while cloud-based software provides instant access to inventory information from anywhere. This integration not only saves time but also reduces errors and improves overall inventory management.
Stock Control Method vs. Stock Control System
Before we proceed to discuss the stock control system further, it’s essential to clarify the distinction between the stock control method and the stock control system.
A stock control method refers to all the processes businesses use to track stock. To better understand, look into the following types of stock control methods:
In contrast, a stock control system is the actual tool or software that implements these methods. It automates data collection, monitors stock levels, and provides real-time reports to help businesses make informed decisions efficiently.
Types of Stock Control Systems
There are two main types of stock control systems:
Perpetual Stock Control System
A perpetual stock control system provides real-time and continuous updates of inventory levels. Every time an item is sold, returned, or restocked, the system automatically adjusts the records to reflect the current stock.
For example, C2W Inventory is a powerful inventory control system that provides you with full access to your inventory anywhere and tracks stock in real-time. It offers automatic stock level alerts, multi-location support, detailed sales and purchase reports, and integration with barcode scanners.
The constant monitoring with a perpetual stock control system helps businesses maintain inventory accuracy and reduce the risk of stockouts or overstocking. It is best suited for small businesses with large and movable inventories that require precise control over their stock to support fast decision-making and efficient operations.
Periodic Stock Control System
A periodic stock control system updates inventory records at specific intervals. Businesses often count their stock at set times, such as weekly, monthly, or quarterly. Afterward, they adjust their inventory records accordingly.
This method is simpler and less costly to implement. However, it brings greater risks of inaccuracies between counts, which can lead to either surplus stock or shortages. It suits small businesses with less frequent inventory movement or limited resources.
Why Is Stock Control System Crucial?
The stock control system has become a necessity rather than a choice. The key benefits of integrating a stock control system into your inventory management framework are as follows:
- Accurate inventory tracking
- Prevent stockouts and overstocking
- Improve cash flow
- Enhance customer satisfaction
- Automate stock management processes
- Strategic decision making
- Multi-location management
- Loss prevention from damage, theft, or discrepancies
In short, the stock control system empowers businesses to maintain precise inventory levels and respond swiftly to market demands.
How to Choose the Best Stock Control System?
There are many factors to consider when choosing the best stock control system, but the two leading ones are automation and integration.
Automation
Automation saves time and reduces errors by automating repetitive tasks, such as sending low-stock alerts or updating inventory counts. This allows you to focus on more critical aspects of growing your business, rather than conducting manual inventory checks.
Integration
Integration refers to how well the system fits with your existing workflow and software ecosystem. A well-integrated system consolidates different parts of your inventory process into one platform. This eliminates the need to switch between multiple tools or manually transfer data. Moreover, this smooth access improves efficiency and minimizes errors.
Other Factors
Other than automation and integration, you can also evaluate the inventory management systems based on the following factors:
- Ease of use for quick adoption and minimal training
- Scalability to grow with your business needs
- Real-time inventory tracking for accurate stock levels
- Comprehensive reporting for informed decision-making
- Cost-effectiveness balancing features and budget
- Customization options to fit your specific processes
- Reliable customer support and training availability
- Multi-location management for businesses with several sites
- Strong data security and user access controls
Picking the right stock control system is a one-time thing. Therefore, take the time to research and test options before making a decision.
Conclusion
A stock control system is all about maintaining the right balance of inventory to meet customer demands efficiently while minimizing costs and reducing waste. Once integrated, it provides real-time visibility into stock levels, automates routine tasks like reorder alerts, and helps prevent costly stockouts or excess inventory. Therefore, it’s time to take control of your inventory and transform your business with C2W Inventory — the hassle-free stock control system designed to save time, cut costs, and boost customer satisfaction.
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