Guide to Warehouse Inventory Control for Growth

Erin Vince December 12, 2024

Effective warehouse inventory control isn’t just an operational necessity—it’s a growth strategy. Optimized inventory management can reduce holding costs by up to 25% and improve order accuracy significantly, driving customer satisfaction and long-term profitability.

However, maintaining control over inventory becomes increasingly challenging as businesses grow. This guide explores the tools, strategies, and systems that can help you master inventory control while scaling effectively.

The Importance of Warehouse Inventory Control

Imagine this: You’ve invested heavily in advertising, driving traffic to your e-commerce store. Orders flood in, but delays, stockouts, or incorrect shipments tarnish the customer experience.

Here’s why warehouse inventory control matters:

Cost Efficiency: Proper control minimizes storage costs, spoilage, and obsolescence.

Order Accuracy: An accurate system ensures customers get what they ordered, on time.

Scalability: As your business grows, a robust system handles increased complexity with ease.

Data Insight: A study shows businesses adopting advanced inventory control systems reduced holding costs by 20-30% while improving fulfillment rates by 15%.

Key Challenges in Inventory Control for Growing Businesses

Unpredictable DemandGrowing businesses often struggle with fluctuating demand, leading to either stockouts or overstocking.

Lack of Real-Time TrackingDelayed data leads to missed opportunities and errors.

Manual ProcessesSpreadsheet-based management systems can’t keep pace with growth.

Inadequate ToolsOutdated or mismatched tools can cause inefficiencies.

How to Set Up a Warehouse Inventory Control System

1. Conduct an Inventory Audit

Identify slow-moving, high-demand, and obsolete items.

Use SKU analysis to categorize inventory effectively.

2. Implement Real-Time Tracking

Tools like Cin7 (Website) and TradeGecko (Website) enable real-time updates.

Benefits: Immediate stock visibility, faster decision-making, and reduced errors.

3. Leverage Predictive Analytics

Predictive tools analyze historical sales and market trends to forecast demand accurately.

Example: A mid-sized retailer using predictive analytics cut stockouts by 25% during peak seasons.

4. Automate Inventory Control Processes

Automation reduces human error and speeds up inventory updates.

Consider tools like Zoho Inventory (Website) or OrderMS (Website).

5. Integrate Inventory Tools with Other Systems

Ensure your inventory software integrates seamlessly with your order management, CRM, and accounting systems.

Example: Integration with QuickBooks allows streamlined financial tracking.

6. Train Your Team

Provide hands-on training to employees for using new tools and systems effectively.

Best Practices for Ongoing Inventory Control

Adopt the ABC Analysis

Use Barcode or RFID Scanning

Cycle Counting

Set Reorder Points

Monitor KPIs

Examples of Success Through Inventory Control

Case Study: Brightpearl

A fashion retailer using Brightpearl (Website) achieved a 30% increase in order accuracy and reduced fulfillment time by automating inventory updates.

Case Study: Skubana

An electronics e-commerce store integrated Skubana (Website), enabling real-time tracking across multiple sales channels, which led to a 15% boost in sales during peak periods.

Actionable Steps to Improve Inventory Control

Start Small: Begin by automating a single aspect, such as stock tracking.

Invest Wisely: Choose software that matches your business size and complexity.

Refine Processes Regularly: Continuously analyze data to identify inefficiencies.

Partner with Experts: Work with consultants or software providers who specialize in warehouse management.

Why Now Is the Time to Optimize Your Inventory Control

The rapid growth of e-commerce means that customer expectations for fast, accurate delivery are higher than ever. By optimizing inventory control with real-time tracking, predictive analytics, and automation, you can reduce costs, enhance efficiency, and set your business up for scalable growth.

Start small, integrate smart tools, and watch as your operations become smoother and your bottom line grows.

Feel free to reach out to us if you have any questions.

Read the previous blog on Top 7 Inventory Tracking Software for 2024.