Good practices to managing your business inventory

We all know that to maintain a business requires economic and marketing strategies, as well as maintaining control of the entire inventory to know which products are available and which should be purchased to the satisfaction of the customer. The inventory control is vital for the success of the company, and since the POS System, we will tell you why, and how to keep this record correctly.

There are several ways to review, manage and control inventory from manual forms to automated forms through special programs or systems such as Free POS System offered by some companies.

Importance of inventory control

First, we need to clarify the concept of what is an inventory. Also known as Stock is mainly based on the number of products, goods or fixed assets that a company or business has available at a given time.

To establish the importance of inventory control, you must know the types of inventories present in a company.

We find an inventory of the real or physical type, which is established through the total count of existing products in the company. Then it verified with the record that is kept in the accounting books to certify that both current quantities coincide at all.

The person responsible for carrying out this operation is usually the administrative part of the company or the accountant and must be performed periodically, to avoid any possible loss of any product or inconsistency within the accounting book.

This type of inventory also allows maintaining and cataloged each product offered within the business, compare the actual existence with the accounting books, and at the same time control the investment of the company's fixed assets.

On the other hand, we must identify another type of inventory called virtual inventory, which is nothing more than the number of products or goods that a business has in a given place, whether it is a warehouse or a back room.

It means an advantage to the business over the competition, that they do not have such inventory. It gives the possibility to offer more products and different lines or areas.

You also run a lower risk by not having to dispose of all your products in one place, while offering the possibility to the customer to always find the item they need, so it becomes a fixed customer for the company.

Another importance of virtual inventory control is that usually this can be kept up to date from a special software, such as the well-known POS or point of sale, serving this tool not only for payment of products or issuance of invoices but to carry control in real-time of all the products available for the sale.

These are the types of inventories best known to people, however, there are many more, such as the minimum inventory that is the minimum quantity you want in your business, or the online inventory, which is based on the number of products that are on the production line.

Knowing the importance of inventory control and doing it practically will avoid some problems such as:

Lack of product information, which can lead to economic losses.

You may have excess inventory, otherwise insufficient inventory, triggering negative consequences for your company.

Your employees can steal some of your products and you wouldn't notice it.

You have already noticed that the great importance of inventory control is to avoid these and other problems that could prove to be a failure for your business.

On the contrary, if you do good practices within your company, such as keeping an adequate inventory, you will be able to obtain great profits for your business. You will know how much you need to invest in replenishing scarce products, and you will know your whole company thoroughly.

Follow each of the steps appropriately such as strategically classifying each product, developing a route to count each item, generating daily reports, and comparing your actual inventory with the one you carry in your ledger at all times.

In this way, you will realize practically and experientially the importance of inventory control and your business will yield much more economically achieving the desired success.