Definition of an Inventory Control System.

In today's globalized and integrated economy, intense competition necessitates faster demand for goods and products, and manufacturers and producers cannot afford to stock more inventory than necessary. An inventory-control system (mostly automated or computerized) helps producers, warehouse owners and stockists to better manage inventory and control overhead expenses. It ensures that just enough inventories are kept in stock.

1. Real -Time Assessment

   • New--generation and highly sophisticated inventory control systems give near real-time assessment of inventory levels and movement of goods and products among various points in an organization's distribution, supply and marketing chain.

   Ensures Control

   • Real-time assessment of inventory items and stockpile of goods ensures better control and availability of finished products and processed goods at wholesale, retail and customer-facing points and outlets.

   Better Planning

   • Knowledge of supply, storage and accessibility of existing items, supplies and goods enables organization managers and planning personnel to better plan for present and future demand. Production scheduling and cost estimates for procurement are better managed.

   Timely Issuance of Pay Orders

   • A computerized inventory system monitors inventory level at all times and issues pay orders to suppliers and other business partners as required. Invoices raised by external parties are also addressed swiftly.

   Better Accountability

   • Modern businesses investing in the latest inventory-control systems can avoid waste on all fronts related to manufacturing, production, material supplies and labor and thus streamline operations.