Four Simple Reasons Why Inventory Control Systems are Important

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Inventory control systems are a collection of hardware and software-based tools, such as barcode scanners and inventory tracking programmes, which help businesses to keep track of their stock. These systems give companies who sell quantifiable goods an accurate means of overseeing their stock levels, sales, losses and much more. Inventory control systems automate the process of counting stock to prevent inevitable errors involved in doing these tasks manually. Below, we summarize precisely why inventory control is crucial to the success of every business.

Customer Satisfaction

The ultimate goal for any business is to sell their products and make a profit. This is an impossible task without ensuring that your customers are happy with their purchases, and without ensuring that they view your company as reliable and transparent. If you do not have a trustworthy inventory control system, you run the risk of running out of stock that is in high demand.

In this scenario, you may not be able to fulfil a customer’s order, and this will have immediate consequences for your company. Moreover, these types of situations can tarnish your company’s reputation, inhibiting the retention of customers and dissuading potential customers. A strong inventory control system prevents this from happening.

If you invest in a reliable inventory control system, you will have a head-start in all things inventory-related to prevent situations like this. A good inventory control system will alert you when you need to reorder certain items, so that you always have the right amount of stock according to demand. This knowledge will make sure that the customer gets what they want, when they want it, and everybody wins.

Inventory control systems boost efficiency

A related benefit of inventory control is efficiency. Customers are more likely to have a good impression of you if you are able to fulfil their orders in a timely matter. Manually locating items that have been sold, even in a smaller warehouse, is time-consuming and error-prone. An inventory control system will tell workers exactly where the product is, and this will speed up the order process for your customer.

Another way that inventory systems encourage efficiency is by making tracking numbers and delivery addresses easy to find. A good inventory control system will put this information right at your fingertips, to prevent time-wastage and get the correct product delivered to the right location as quickly as possible.


Thirdly, inventory control systems are extremely important because they help you keep an accurate record of stock levels. These systems tell you exactly how much stock you have, which stock you no longer have and which products you need to reorder.

Manually counting stock is a method which is prone to error, and it is small mistakes like these which can have a far-reaching, negative impact. An inaccurate inventory record risks disappointing customers by under-ordering, and you also risk over-ordering. These things may stifle your profitability and frustrate your customers.

Sales and Losses

Lastly, inventory management systems are essential to any business because they help you to keep track of sales patterns. These systems allow you to oversee which products are in high demand and which products are not. By alerting you to these patterns, you can prioritize ordering and make sure that you always have the most profitable items in stock.

Relatedly, inventory management systems help companies to keep track of any thefts that may have occurred. This gives your company the ability to understand any oddities in your inventory levels, so that you do not make any mistakes when ordering new stock. This knowledge also tells you whether you are doing enough to prevent these types of thefts from the outset.

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Melanie - Unleashed Software

Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.

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