Inventory control describes the activities, systems and procedures used to optimize an organization’s inventory levels.
Inventory control describes the activities, systems and procedures used to optimize an organization’s inventory levels. Through effective inventory control, it’s possible to make the best use of resources, including raw materials; components; work in process; finished products; and maintenance, repair and operating supplies.
Inventory management is one aspect of business management (the coordination and organization of all business activities). Inventory control is an element of inventory management.
Inventory control is critical to preventing overages, obsolescence, spoilage, waste, stockouts and disappointed customers. Avoiding these costly problems and others requires effective management of supply chain disruption, demand variation and risk.
Supply chain management professionals who earn the APICS Certified in Planning and Inventory Management (CPIM) designation are able to demonstrate their ability to apply inventory control processes in order to achieve supply chain resilience and agility.
Organizations use inventory control systems to gain an accurate record of their inventory levels. There are two main types:
Collins Aerospace, the West Palm Beach, Fla.-based business unit of United Technologies Corporation, used APICS CPIM education as its primary inventory control training program for employees. The company manages $4.3 billion in inventory, which can include variation and excess inventory in the supply chain. The knowledge gained from CPIM courses enabled employees to develop a set of standard inventory replenishment policies for all of Collins Aerospace’s manufacturing sites. These standards have led to improved service levels, reduced unnecessary inventory and provided buffer variation.
