Inventory Control

Definition

The supervision of supply, storage and accessibility of items in order to ensure an adequate supply without excessive oversupply.

What is it?

Inventory control is finding the balance between not running out of a given item while not having an excess on hand that takes up space and is not being readily sold to customers.

Why is it important?

Proper inventory control is necessary for multiple reasons. It can reduce unnecessary costs for the store, keep customers satisfied, and promote positive loss prevention strategies.

View All Competencies

Suggestions for Improvement

Put Systems in Place

Whether it be electronic or otherwise, be sure that systems are in place for tracking all inventory and that employees are aware of how to use these systems effectively. This includes what to do with damaged and returned merchandise.
Track Sales

Be sure you are regularly looking at sales reports to know which items are most popular and which are barely moving. Keeping regular tabs on sales will inform future purchasing decisions. A focus on other aspects such as the season, holidays, and other temporal events that might affect future sales.
Make Loss Prevention a Priority

Focusing efforts on preventing theft both from customers and employees will help maintain accurate inventory lists and reduce risks of running out of stock on popular items.

Books to Read

Essentials of Inventory Management

Inventory management is about more than counting what you’ve got. It’s about understanding business realities and making decisions that balance current demand with future needs while keeping overhead and operating costs to a minimum.

Inventory Accuracy: People, Process, and Technology

Inventory accuracy starts with an understanding of the conditions under which errors occur and ends with error-resistant processes, intelligent use of technology, a well-trained and highly motivated workforce, and an ongoing process of continuous improvement.

Preventing Shrink: Life in Loss Prevention

A book describing ways to help prevent shrink in a retail setting by engaging current employees, identifying potential areas of concern, and ways to handle dishonest associates. This book has diagrams to help everyone control their shrink more efficiently.

Inventory Best Practices

Offers the latest and most important information on advanced techniques and strategies to improve on the accuracy of all ongoing inventories, configure a warehouse for optimum counting efficiencies, and more.

Websites to Visit

What You Need to Know About Managing Retail Inventory

In this edited excerpt, the author explains what type of inventory system you should put in place and why.

Retail Inventory Management: An Intricate Balancing Act

Retail inventory decisions and their impact on the bottom line

National Retail Federation- Loss Prevention

Resources from the National Retail Federation to help promote loss prevention tactics

Lessons from the Leaders of Retail Loss Prevention

A few companies stand out in their ability to limit losses, and if every retailer were as successful as they are, the sector could save billions of dollars annually—as much as $27 billion in the United States alone.

Inventory Control

Definition

What is it?

Why is it important?

Put Systems in Place

Track Sales

Make Loss Prevention a Priority

Our Mission

Contact us

Recent Awards