Do you know the difference between inventory management and inventory control? Inventory management focuses on getting inventory to the right places at the right times, and inventory control focuses on using that inventory most effectively to keep costs down.
I talked about inventory control in a blog post entitled “4 Inventory Control Methods You Need to Know.” Inventory control is often seen as the practical side of inventory management because it focuses on the time element.
According to the article “Inventory Management Techniques,” inventory management focuses on three things:
- Correct placement of resources.
- Quick, inexpensive product reordering.
- Efficient product receiving and storage.
Inventory control focuses on these three things:
- Cutting purchases of slow-moving products.
- Keeping up with changes in demand to avoid overstock.
- Avoiding product spoilage by efficiently using inventory.
Both inventory management and inventory control are important parts of businesses’ success. They feed off each other and help each other succeed. If you have strong inventory management and inventory control, you can quickly get the products you need to the locations you need them at and then sell them in a timely manner.
I’ll get into the details of inventory management methods in a later blog post. Be sure to use inventory software to make the processes of inventory management and inventory control easier.