E-commerce businesses are the latest trend of doing retail and trade business. E-commerce businesses have been a successful model for business for the last 5 years. The trend for E-commerce businesses has been increasing ever since. New companies are entering this business every day, particularly after the pandemic Covid-19. The benefit of such a business is that it gives the company the opportunity to place its product on a global level. And this without the need for retail for physical space globally. DDP services are the most preferred form of E-commerce business delivery options offered to the customer
Although there are a lot of benefits of E-commerce businesses, there are also some challenges in managing E-commerce businesses. The biggest issue an E-commerce business can face is supply chain process disruptions. We have seen container shortages, port congestions, and raw material disruption during the pandemic covid-19. Any E-commerce business highly relies on the supply chain process of any business. E-commerce businesses sometimes rely on the Transfreight logistics of their products, for deliveries. One of the most important factors in the supply chain process is inventory control.
In today’s blog, we will discuss inventory control management, inventory control process, inventory control methods. This blog will be very helpful for especially new –commerce businesses.
What is Inventory control?
Inventory control is the process of managing the stock of the company, in such a way that the optimal inventory level is maintained. The benefit of maintaining the optimal level of inventory is to ensure that the business does not need to stick its excessive funds in stocks. Inventory control is different from Inventory control management. Inventory control must include the following:
- Barcode for each product, for easy handling
- Sales and dispatch record of the product
- Real-time data of the inventory level maintained.
Inventory Control Vs Inventory management:
Although both inventory control and inventory management are both have the same goal of attaining the optimal stock level. But Inventory control is different from Inventory management.
Inventory management starts from the point of planning when a company estimates the demand for the product. The major role of inventory management is to decide when to reorder the inventory and at the quantity of order.
Inventory control starts from the point of time when the physical stock enters the warehouse premises of the company. Inventory control management will last till the product is dispatched from the warehouse to the final customer.
Benefits to businesses maintain Inventory Control:
There are a lot of benefits for the companies that are maintaining the inventory control in their company. A few major benefits of the inventory control method are as follows:
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Maintaining an optimal level of inventory
The foremost benefit of inventory control is the maintaining of optimal inventory level through the inventory control process. The purpose is to have sufficient stock just for the demand of the customer
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Eradicating Human error
The second important benefit of inventory control is to eradicate human error. Inventory control systems help the company maintain a proper record of the optimal level of stock, thus eradicating any human error. Inventory control systems help the company in inventory monitoring, to achieve its goal.
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Best return on investment
The third foremost important benefit of inventory control is to ensure that the company maintains the optimal level of the stock, this in return frees the company from any excessive investment in stock otherwise. Inventory management control ensures the optimal level of stock to ensure maximum profitability.
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Better focus on the quality of product
By focusing on the inventory control procedures the company is saved from any excessive stocks. Thus the company can focus on the quality of the product.
CONCLUSION:
E-commerce businesses highly rely on the supply chain process to succeed. One of the important factors of the supply chain process is optimal inventory control. Inventory control is different from inventory management, although the purpose of it is to maintain the optimal level of stock. The inventory control starts from the time when the product physically enters the warehouse of the company, till its dispatched to the consumer. Inventory control systems are the best way to improve and achieve the goals of the company for optimal stock levels.
