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The Benefits of Good Inventory Control

Editor's Note: This post was originally published in November 2014 and has been updated for freshness, accuracy, and comprehensiveness.


Inventory is one of the largest investments for small businesses and, when managed efficiently, can be a source of many financial benefits. Therefore, good inventory control is a must.


At a minimum, the financial benefits of good inventory control and management include two key areas:


Labor Cost Benefits

Moving inventory requires labor, and labor is expensive. In addition, moving inventory increases the risk of losing or misplacing it, and lost inventory must be found – requiring more labor and more labor costs. As a result, many companies strive to handle their inventory as little as possible.


Achieving Effective Inventory Management


It is easiest to remove extra labor from inventory processes when you have good inventory control policies and an organized warehouse. Incorporating those practices, along with good inventory management software, will give you both reduced costs and increased employee productivity.

Inventory Cost Benefits

Owning inventory eats cash flow. Once you’ve paid for the inventory, you also have to pay to store it and to offset breakage, spoilage, and shrinkage. You also risk having inventory items become obsolete.


Good inventory control software manages obsolescence and deterioration by tracking your purchases – by date and by lot – and matching it to your sales orders. It also assists with supply chain planning, which reduces carrying costs with better forecasting.  

Doing It Right

The best inventory receiving process is never having to receive it and the best inventory storage process is never having to store it.


When it comes to inventory, minimizing is the key – minimize receiving, minimize handling, minimize storage, etc. Don’t do something if you don’t have to, but if you do have to, do as little of it as possible.


With a little work and the right systems to support you, managing complex inventory processes can create competitive financial benefits for your company. The first step to reaping these benefits is choosing the right inventory control software system for your business.


We’d like to help you reach a new level of success with your inventory control and management processes. Contact Southeast Computer Solutions to learn more about inventory control software and how it can move your company to a higher level of performance.

About Southeast Computer Solutions

Southeast Computer Solutions is based in Miami, Florida, and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care. Learn more by visiting our website or calling 305-556-4697.


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