{"id":7420,"date":"2024-11-12T02:12:55","date_gmt":"2024-11-12T02:12:55","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=7420"},"modified":"2026-03-12T04:31:09","modified_gmt":"2026-03-12T04:31:09","slug":"inventory-control","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/inventory-control\/","title":{"rendered":"Inventory Control Defined: Types and Best Practices"},"content":{"rendered":"<p>Are inventory problems like overstocking or stock shortages holding your business back? Efficient stock management is essential for growth, but without the right system, it can be a challenge.<\/p>\n<p>A study on <a href=\"https:\/\/wwjmrd.com\/upload\/implementation-of-inventory-control-management-and-repeat-purchase-in-right-goods-philippines-incorporated-inputs-to-policy-reformulation_1654686674.pdf\" target=\"_blank\" rel=\"noopener\">Right Goods Philippines Incorporated<\/a> showed that implementing an inventory control system led to a 27.4% increase in sales through improved stock management and promotions.<\/p>\n<p>Inventory control is one of those operational fundamentals that tends to get overlooked until something goes wrong, a stockout during peak demand, or shelves full of products that stopped moving months ago. Both scenarios cost money, and both are largely preventable with the right approach.<\/p>\n<p>A study on Right Goods Philippines Incorporated found that implementing a structured inventory control system led to a 27.4% increase in sales, driven by improved stock management and more targeted promotions. The numbers reflect what most businesses eventually discover: getting inventory right isn&#8217;t just a logistics function, it&#8217;s a revenue driver.<\/p>\n<table style=\"border-collapse: coacllapse; background-color: #fffacd; border-radius: 25px 25px 25px 25px;\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px; border: none;\">\n<h3 style=\"margin-bottom: 10px;\"><span style=\"background-color: #990000; color: #ffffff; padding: 5px;\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li><a href=\"#A\">Inventory control is the systematic process of<\/a> managing stock levels to prevent both overstocking and shortages, ensuring capital is used efficiently and customer demand is consistently met.<\/li>\n<li><a href=\"#B\">Businesses can choose<\/a> between a periodic system for simplicity or a perpetual system for real-time accuracy, depending on their transaction volume and operational requirements.<\/li>\n<li>Techniques like ABC analysis, FIFO, JIT, and MRP each <a href=\"#C\">serve different inventory priorities<\/a> from cost control and stock rotation to demand-driven procurement and production planning.<\/li>\n<li><a href=\"#D\">Effective inventory control depends on<\/a> combining regular stock audits, accurate demand forecasting, and automation tools to maintain consistent accuracy as operations scale.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span data-sheets-root=\"1\"><div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; *\/\r\n\t\t}\r\n\t}\r\n<\/style>\r\n\r\n<style>\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor:#000;\r\n\t\tmargin-bottom: 10px;\r\n\t\ttransition:all 0.2s ease-in-out;\r\n\t\tfont-size:15px\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#list_toc_float li a{margin-bottom:0px}\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width:768px){\r\n\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t \/* custom scrollbar style *\/\r\n::-webkit-scrollbar {\r\n    width: 7px;\r\n}\r\n::-webkit-scrollbar-track {\r\n    background: #d7a2a4;\r\n}\r\n::-webkit-scrollbar-thumb {\r\n    background: #b1252d;\r\n    border-radius: 15px;\r\n}\t\t\r\n\r\n<\/style>\r\n\r\n<script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n\t\t\/\/ Function to handle click on all <a> elements with href starting with #\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst targetId = this.getAttribute('href').substring(1);\r\n\t\t\tconst targetElement = document.getElementById(targetId);\r\n\r\n\t\t\tif (targetElement) {\r\n\t\t\t\tconst headerHeight = document.querySelector('#toc .header').offsetHeight;\r\n\t\t\t\tconst navbarHeight = document.getElementById('tdi_34') ? document.getElementById('tdi_34').offsetHeight : 0;\r\n\t\t\t\tconst windowHeight = window.innerHeight;\r\n\t\t\t\tconst targetOffset = targetElement.offsetTop;\r\n\t\t\t\tconst scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight) - navbarHeight - 40;\r\n\r\n\t\t\t\twindow.scrollTo({\r\n\t\t\t\t\ttop: scrollTo,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all <a> elements in toc-list and list-toc\r\n\t\tconst titleLinks = document.querySelectorAll('#toc-list a, #list_toc a');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n<\/script>\r\n\r\n<!-- ToC List for mobile -->\r\n<script>\r\n \/\/ Generate TOC based on headings\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  \/\/ Get the element that will contain the TOC\r\n  const tocList = document.getElementById('toc-list');\r\n\r\n  \/\/ Get the element with class 'td-post-content'\r\n  const article = document.querySelector('.td-post-content');\r\n\r\n  \/\/ Find all h2 elements within the article\r\n  const headers = article.getElementsByTagName('h2');\r\n\r\n  \/\/ Loop through the h2 elements and create a list item for each one\r\n  for (let i = 0; i < headers.length; i++) {\r\n    const header = headers[i];\r\n    const headerText = header.textContent;\r\n\/\/     const headerId = 'header-' + i;\r\n    const headerId = headerText\r\n    .toLowerCase()\r\n    .trim()\r\n    .replace(\/[^\\w\\s-]\/g, '')  \/\/ hapus tanda baca\r\n    .replace(\/\\s+\/g, '-'); \/\/ ganti spasi jadi \"-\"\r\n\r\n    \/\/ Set an ID for the header if it doesn't have one\r\n    header.setAttribute('id', headerId);\r\n\r\n    \/\/ Create a list item for the TOC\r\n    const listItem = document.createElement('li');\r\n\r\n    \/\/ Create a link for the list item\r\n    const link = document.createElement('a');\r\n    link.setAttribute('href', '#' + headerId);\r\n    link.textContent = headerText;\r\n\r\n    \/\/ Append the link to the list item\r\n    listItem.appendChild(link);\r\n\r\n    \/\/ Append the list item to the TOC list\r\n    tocList.appendChild(listItem);\r\n  }\r\n});\r\n\r\n\/\/ Keep height and placement of content using placeholder in place of TOC\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const placeholderToc = document.querySelector('#placeholder-toc');\r\n\r\n  function setPlaceholderHeight() {\r\n    placeholderToc.style.height = `${toc.offsetHeight}px`;\r\n  }\r\n\r\n  \/\/ Set the initial height of the placeholder\r\n  setPlaceholderHeight();\r\n\r\n  \/\/ Update the height on window resize\r\n  window.addEventListener('resize', setPlaceholderHeight);\r\n});\r\n  const tocTitle = document.querySelector('#toc-title');\r\n\r\n\/\/ Sticky TOC and update heading\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const footer = document.querySelector('.td-footer-template-wrap');\r\n  const tocParent = toc.parentElement;\r\n  const divTop = tocParent.getBoundingClientRect().top + window.pageYOffset;\r\n  const tocHeight = toc.offsetHeight;\r\n  const triggerPoint = divTop + tocHeight + 700;\r\n  const footerHeight = footer.offsetHeight;\r\n  const triggerFooterPoint = footer.getBoundingClientRect().top + window.pageYOffset - footerHeight - footerHeight - footerHeight;\r\n  const phtoc = document.querySelector('#placeholder-toc');\r\n  const headers = document.querySelectorAll('.td-post-content h2');\r\n  const navLinks = document.querySelectorAll('#toc-list a');\r\n\t\r\n\tconst panel2 = document.querySelector(\"#toc .list\");\r\n\tvar icon = document.querySelector(\".toc-icon\");\r\n\r\n  let activeLink = null; \/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; 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It goes beyond simple counting; it&#8217;s a systematic approach to tracking <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/inventory-levels\/\">stock movements and levels<\/a> so that capital isn&#8217;t tied up in excess goods and sales aren&#8217;t lost to shortages.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Many businesses now use dedicated software to automate this process, making <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/inventory-tracking\/\">inventory tracking<\/a> more accurate and reducing the manual effort involved in keeping records current.<\/p>\n<h2><strong>Why Is Inventory Control Important?<\/strong><\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Inventory sits at the intersection of cash flow, operations, and customer experience, which is why poor control has visible consequences across all three. Overstocking locks up working capital in goods that may spoil or become obsolete, while stockouts push customers toward competitors, with research suggesting 55% of shoppers won&#8217;t buy a substitute if their preferred product is unavailable.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Beyond availability, effective inventory control reduces operational costs by cutting unnecessary storage, spoilage, and emergency procurement. It also improves <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/inventory-management-system\/\">supply chain visibility<\/a>, helping businesses respond faster to demand shifts rather than reacting after the damage is done.<\/p>\n<h2><strong>What are Common Inventory Control Problems and Challenges?<\/strong><\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The most common inventory problems \u2014 overstocking, stockouts, inaccurate data, and poor demand forecasting \u2014 tend to compound each other. Inaccurate records lead to bad purchasing decisions, which lead to either surplus or shortage, both of which carry their own downstream costs.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Other persistent challenges include supplier unreliability, theft and shrinkage, disorganized warehouse layouts, and difficulty integrating inventory software with existing systems. In regulated industries, compliance tracking adds another layer of complexity that manual processes struggle to handle consistently.<\/p>\n<h2><span id=\"role\"><strong>Benefits of Inventory Control Systems<\/strong><\/span><\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">A well-implemented inventory control system does more than prevent stockouts, it creates operational leverage across the business. Real-time stock visibility means teams can respond to demand changes without waiting for manual counts, and automated reorder triggers reduce the risk of human oversight causing supply gaps.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">The broader <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/benefits-of-inventory-management-system\/\">benefits of a well-run inventory system<\/a> include optimized logistics, lower carrying costs, more accurate order fulfillment, and a measurable improvement in customer satisfaction, all of which contribute directly to profitability.<\/p>\n<h2><b>Inventory Control vs. Inventory Management<img decoding=\"async\" class=\"aligncenter wp-image-17372 size-full\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management.webp\" alt=\"inventory control vs inventory management\" width=\"1200\" height=\"650\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-300x163.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-1024x555.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-768x416.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-775x420.webp 775w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-150x81.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-696x377.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/inventory-control-vs-inventory-management-1068x580.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/b><\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Inventory control and inventory management are related but not the same. Control focuses on the warehouse maintaining accurate stock records, regulating what comes in and goes out, and ensuring goods are in good condition and correctly located. Management takes a broader view, covering the full inventory lifecycle from procurement to final sale, including supplier relationships, demand forecasting, and order fulfillment strategy.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">A useful way to distinguish them: inventory control answers <em>&#8220;what do we have and where is it?&#8221;<\/em> while inventory management answers <em>&#8220;what should we order, when, and from whom?&#8221;<\/em> Both are necessary, and for businesses that experience significant <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/seasonal-inventory\/\">seasonal inventory<\/a> fluctuations, coordinating the two functions effectively becomes especially important.<\/p>\n<table style=\"border-collapse: collapse; width: 100%; border: 1px solid black;\">\n<thead>\n<tr>\n<th style=\"border: 1px solid black; padding: 10px; text-align: center; font-weight: bold; background-color: #990000; color: white; width: 18%;\">Aspect<\/th>\n<th style=\"border: 1px solid black; padding: 10px; text-align: center; font-weight: bold; background-color: #990000; color: white; width: 41%;\">Inventory Control<\/th>\n<th style=\"border: 1px solid black; padding: 10px; text-align: center; font-weight: bold; background-color: #990000; color: white; width: 41%;\">Inventory Management<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\"><strong>Scope<\/strong><\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">Focuses on existing inventory in the warehouse<\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">Deals with raw materials and finished goods throughout the entire production lifecycle<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\"><strong>Goal<\/strong><\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">Ensuring stocks in the warehouse are enough and in good condition<\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">Aiming to have the right inventory in the right place, at the right time, and in a sufficient quantity<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\"><strong><span id=\"B\"><\/span>Areas of Concern<\/strong><\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">&#8211; What items are in the inventory?<br \/>\n&#8211; Where are these items located in the warehouse?<br \/>\n&#8211; What is the condition and status of these items?<\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">&#8211; Which items should you order?<br \/>\n&#8211; How many items do you need to order?<br \/>\n&#8211; When should you order these items?<\/td>\n<\/tr>\n<tr>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\"><strong>Actions<\/strong><\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">&#8211; Receiving, storing, and transporting inventory<br \/>\n&#8211; Checking stock items for expiry dates, spoilage, quality issues, etc.<\/td>\n<td style=\"border: 1px solid black; padding: 10px; text-align: left;\">&#8211; Predicting customer demands based on previous data<br \/>\n&#8211; Reordering and managing inventory items in the supply chain<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>Types of Inventory Control Systems<\/strong><\/h2>\n<p>Inventory control systems help businesses manage stock efficiently, ensuring accurate tracking and optimal inventory levels. These systems come in different types, each offering unique methods to monitor, organize, and control inventory based on business needs. They are typically divided into two types:<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>1. Periodic Inventory System<\/strong> A periodic system counts stock at fixed intervals, weekly, monthly, or quarterly. It&#8217;s simpler to implement and works well for smaller operations, but the gaps between counts mean that discrepancies often go undetected until the next audit. For businesses where real-time accuracy matters, this limitation is significant.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong><span id=\"C\"><\/span>2. Perpetual Inventory System<\/strong> A <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/perpetual-inventory-system\/\">perpetual inventory system<\/a> records every stock movement in real time <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/barcode-vs-qr-code\/\">using tools like barcode scanners<\/a> or RFID, providing a continuously updated view of stock levels. This approach reduces errors, supports faster decision-making, and is generally better suited to businesses with high transaction volumes or strict accuracy requirements.<\/p>\n<h2><strong>Inventory Control Techniques and Methods<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-large wp-image-32568\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-1024x683.png\" alt=\"Inventory control methods\" width=\"696\" height=\"464\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-1024x683.png 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-300x200.png 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-768x512.png 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-630x420.png 630w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-150x100.png 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-696x464.png 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM-1068x712.png 1068w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/11\/ChatGPT-Image-Mar-3-2026-10_56_35-AM.png 1536w\" sizes=\"(max-width: 696px) 100vw, 696px\" \/><\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">There are ten widely used inventory control techniques, each suited to different business contexts:<\/p>\n<ol>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong><a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/abc-inventory-analysis\/\">ABC analysis<\/a><\/strong> segments inventory into three tiers by value and importance, allowing businesses to focus their tightest controls on the items that drive the most revenue.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong><a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/what-is-fifo-method\/\">FIFO and LIFO<\/a><\/strong> govern stock rotation, FIFO ensures older inventory moves first, which is critical for perishables, while LIFO is used in specific accounting and cost contexts.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Just-in-time (JIT)<\/strong> minimizes holding costs by scheduling deliveries to arrive only when needed, though it demands reliable suppliers and precise forecasting to work well.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Batch tracking<\/strong> groups products by production lot, which is essential in food, pharma, and other industries where traceability and expiry management are regulatory requirements.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Cross-docking<\/strong> transfers goods directly from receiving to outbound shipping, cutting storage time and warehouse costs.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Consignment<\/strong> lets suppliers place stock at a retailer&#8217;s location with payment deferred until the item sells, reducing upfront capital risk.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong><a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/mrp-material-requirements-planning\/\">Materials Requirement Planning (MRP)<\/a><\/strong> uses sales forecasts to determine what materials need to be ordered and when though its accuracy depends heavily on the quality of the underlying forecast data.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong><a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/economic-order-quantity-eoq\/\">Economic Order Quantity (EOQ)<\/a><\/strong> calculates the optimal reorder quantity to balance holding costs against ordering costs.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Days Sales of Inventory (DSI)<\/strong> measures how quickly stock turns over, with a lower figure generally indicating healthier inventory velocity.<\/li>\n<li class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\"><strong>Days of Inventory Outstanding (DIO)<\/strong> tracks how long goods sit before being sold, a metric that has risen 8.3% on average over the past five years, reflecting broader pressure on businesses to improve <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/inventory-costs\/\">inventory cost management<\/a>.<\/li>\n<\/ol>\n<p><span id=\"D\"><\/span>Recent trends show an <a href=\"https:\/\/www.dol.gov\/general\/topic\/statistics\" target=\"_blank\" rel=\"noopener\">8.3% increase<\/a> in DIO scores over the past five years, highlighting the need for better inventory control practices. Optimizing inventory control systems reduces storage costs and ensures businesses free up working capital, allowing for improved financial stability and growth.<\/p>\n<h2><strong>Best Practices for Effective Inventory Control<\/strong><\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Effective inventory control depends on a combination of process discipline and the right tools. Regular cycle counts rather than infrequent full audits catch discrepancies early and keep records accurate without disrupting operations. Prioritizing inventory management based on demand velocity and item value ensures that the most critical stock gets the most attention.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Automation plays an increasingly important role here. <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/ai-inventory-management\/\">AI-driven inventory management<\/a> tools can handle demand forecasting, reorder triggers, and anomaly detection at a level of speed and accuracy that manual processes can&#8217;t match. Pairing automation with well-organized warehouse layouts and consistent supplier performance monitoring creates the foundation for a system that stays accurate over time, not just at implementation.<\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">Inventory control is ultimately about making sure the right stock is in the right place at the right time and building the systems that maintain that balance even as demand, suppliers, and operations shift. Whether a business is dealing with overstocking, shrinkage, or fulfillment gaps, addressing these at the process level leads to measurable improvements in cost efficiency and customer reliability.<\/p>\n<p class=\"font-claude-response-body break-words whitespace-normal leading-[1.7]\">For businesses evaluating tools to support this function, a structured comparison is a good starting point. Reviewing <a class=\"underline underline underline-offset-2 decoration-1 decoration-current\/40 hover:decoration-current focus:decoration-current\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/best-inventory-management-software\/\">the best inventory management software options<\/a> can help narrow down which platforms align with specific operational needs, industry requirements, and scale.<\/p>\n<h2><strong>Frequently Asked Questions<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details open=\"open\">\n<summary><strong>What is the importance of an inventory control system?<\/strong><\/summary>\n<p>This system is crucial for maintaining optimal stock levels and avoiding overstocking or stockouts. It enhances operational efficiency and customer satisfaction by ensuring products are available when needed.<\/p>\n<\/details>\n<\/li>\n<li>\n<details open=\"open\">\n<summary><strong> What is an example of inventory control? <\/strong><\/summary>\n<p>A common example of this is the use of a barcode system to manage stock levels in real-time. This method allows businesses to monitor inventory movements and adjust orders accordingly and accurately.<\/p>\n<\/details>\n<\/li>\n<li>\n<details open=\"open\">\n<summary><strong>What is the basic purpose of inventory control?<\/strong><\/summary>\n<p>The primary purpose is to manage the supply chain efficiently by maintaining the right balance of stock. It aims to minimize holding costs and maximize the availability of goods to meet customer demands.<\/p>\n<\/details>\n<\/li>\n<li>\n<details open=\"open\">\n<summary><strong>What is the difference between inventory control and inventory management?<\/strong><\/summary>\n<p>Inventory control focuses on maintaining accurate stock records and regulating what enters and exits the warehouse, while inventory management covers the broader lifecycle including procurement, supplier relationships, and demand forecasting.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is the importance of an inventory control system?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"This system is crucial for maintaining optimal stock levels and avoiding overstocking or stockouts. 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A study on Right Goods Philippines Incorporated showed that implementing an inventory control system led to a 27.4% increase in sales through improved stock management and [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":21117,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-7420","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-inventory"},"acf":{"content_type_custom_acf":"","post_reviewer":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inventory Control Defined: Types and Best Practices<\/title>\n<meta name=\"description\" content=\"Inventory control is the process of managing stock levels to ensure businesses have the right amount of products at 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