{"id":347499,"date":"2026-01-07T18:15:00","date_gmt":"2026-01-07T18:15:00","guid":{"rendered":"https:\/\/xamai.com\/control-inventarios\/"},"modified":"2026-04-28T17:01:58","modified_gmt":"2026-04-28T17:01:58","slug":"control-inventarios","status":"publish","type":"post","link":"https:\/\/www.xamai.com\/en\/blog\/control-inventarios","title":{"rendered":"What is and what is the importance of inventory control?"},"content":{"rendered":"

 Updated: January 2026<\/span><\/em><\/p>\n

<\/span>What is the importance of having good inventory control in your company? In this article, we explain how to optimize and have total control of your materials.
<\/em><\/p>\n

<\/p>\n

The main objective of inventory control is to ensure that companies have enough products or materials to meet customer demand, while also reducing the total cost of storage operations such as storage and inventory management. <\/p>\n

Let's start with the basics, what is inventory? Inventory is the record of all goods, materials, or products that a company has at a given time. It can show us from raw materials to finished goods ready for sale, including supplies, spare parts, or any resource that is part of the operation.<\/p>\n

In short, inventory accurately shows you the available stock: how much there is, where it is, and in what condition it is. Thanks to it, companies can make better decisions about purchases, production, storage, and sales.<\/p>\n

Characteristics of inventories<\/h2>\n

Talking about inventories is not only referring to what is inside a warehouse, but also refers to a set of data and practices that allow you to know what you have, how much you have, where it is, and when you will need it. Let's look at its characteristics:<\/p>\n

    \n
  1. \n

    They are dynamic and changing<\/p>\n

    Inventories are never static: products enter and leave, stock levels change, and customer needs change. Precisely for this reason, they require constant monitoring.<\/p>\n

     <\/p>\n<\/li>\n

  2. \n

    They represent invested money<\/p>\n

    Every box, piece, or raw material stored in the warehouse is immobilized capital. A healthy inventory must balance having enough product to operate, but without that turning into excessive costs.<\/p>\n

     <\/p>\n<\/li>\n

  3. \n

    They vary depending on the type of business<\/p>\n

    Managing inventories in an auto parts factory is not the same as managing them in a pharmacy or an e-commerce business. Each business defines how sensitive the products are to time, rotation, or expiration.<\/p>\n

     <\/p>\n<\/li>\n

  4. \n

    They have a direct impact on customer satisfaction<\/p>\n

    A good inventory ensures timely and flawless deliveries. If there is no stock when the customer needs it, the sale is lost and the reputation is affected.<\/p>\n

     <\/p>\n<\/li>\n

  5. \n

    They require systematic control and registration<\/p>\n

    Inventory information should be organized, updated, and available. Whether with specialized software or more basic methods, the important thing is to keep a clear record to avoid errors.<\/p>\n

     <\/p>\n<\/li>\n

  6. \n

    They influence strategic planning<\/p>\n

    Understanding inventory behavior helps to anticipate demand, plan purchases, adjust production, and even detect consumption trends.<\/p>\n<\/li>\n<\/ol>\n

    Indicators and KPIs in inventory control<\/h2>\n

    KPIs allow you to understand what is happening with the stock, detect problems in time and make more informed decisions about purchases, production and sales. The most important are:<\/p>\n

    Inventory turnover<\/h3>\n

    This KPI indicates how many times the inventory is renewed in a given period. A high turnover usually reflects good demand and good management, while a low turnover may indicate overstock or products with little sales.<\/p>\n

    Average inventory level<\/h3>\n

    It is key to know if too much capital is being invested in inventory or if the level is insufficient to cover demand.<\/p>\n

    Stockout rate<\/h3>\n

    This indicator reveals how many times a sale could not be fulfilled due to lack of product. It is one of the most sensitive, because it directly impacts the customer experience and revenues.<\/p>\n

    Inventory accuracy<\/h3>\n

    Compares what the system indicates with what actually exists physically. When this KPI is low, problems of control, operational errors or undetected losses appear.<\/p>\n

    Days of inventory available<\/h3>\n

    This KPI estimates how many days the company can operate with the current inventory without restocking. It is very useful for anticipating purchases and coordinating better with suppliers.<\/p>\n

    \n

    Techniques and methods for inventory control<\/h2>\n

    The techniques of systems and methods for inventory control are strategies used by companies to manage and maintain a proper balance between supply and demand for their products.<\/p>\n

    These techniques focus on ensuring that companies have the right amount of different types of products on hand at the right time to meet customer needs without having excess inventory that can result in additional costs.<\/p>\n

    The inventory method includes several approaches, such as the inventory review model, the reorder point system, inventory turnover, ABC classification, and supply chain management. Each technique focuses on a different aspect of inventory management, from determining when to place orders to how to store and distribute products.<\/p>\n

    The correct use of these techniques and methods can help companies reduce inventory costs, increase efficiency, and improve customer service satisfaction by ensuring product availability when needed. In addition, companies can use technology to help implement these techniques and methods for inventory savings and control, such as inventory management software and data analysis to monitor and improve inventory performance.<\/p>\n

    Examples of inventory in different companies<\/h2>\n

    To ensure that everything doesn't remain in theory, let's see how inventories are applied in different types of businesses:<\/p>\n

    1. Inventory in a clothing store
    Taking a clothing store as an example, the inventory includes everything from t-shirts and jeans to accessories and shoes. Here, the key is rotation, because if a collection is stored for too long, it loses value and occupies space that should be available for the new season.<\/p>\n

    2. Inventory in a pharmacy
    In this case, in addition to having many products, expiration dates must be managed, as there is no point in having a large stock of medications if they are going to expire on the shelf. Therefore, the control must guarantee that products with the closest expiration date are sold first.<\/p>\n

    3. Inventory in an auto parts factory
    The company must keep track of raw materials (steel, plastics, screws), work-in-progress products (parts that are on the production line), and finished products ready to be shipped to manufacturers. Here, the important thing is coordination with production and delivery times.<\/p>\n

    4. Inventory in a restaurant
    The inventory includes fresh food, beverages, and utensils. The challenge is that many of these products have a very short shelf life. Here, the 'first in, first out' principle is applied to reduce waste and maintain profitability.<\/p>\n

    Methods and steps to perform an inventory<\/h2>\n

    Doing an inventory is not just about counting boxes; it's an orderly process with basic methods and steps:<\/p>\n

    Most common methods:<\/h3>\n
      \n
    • \n

      Physical inventory: counting each product individually in the warehouse. It is done on key dates and is usually used as general validation.<\/p>\n<\/li>\n

    • \n

      Perpetual inventory: it is updated in real time with the help of software or management systems. <\/p>\n

      Each entry and exit is automatically recorded.<\/p>\n<\/li>\n

    • \n

      Cyclic inventory: it is reviewed in parts or sections in short periods, instead of doing it all at once. This avoids stopping operations.<\/p>\n<\/li>\n<\/ul>\n

      Steps to perform it correctly:<\/h3>\n

       <\/p>\n

        \n
      • \n

        Prepare the ground: <\/span>Define what will be counted (products, raw materials, supplies) and organize the space to avoid confusion.<\/p>\n

         <\/p>\n<\/li>\n

      • \n

        Assign responsibilities:<\/span> The inventory must be managed by a team that records data accurately and without duplication.<\/p>\n

         <\/p>\n<\/li>\n

      • \n

        Choose the method:<\/span> Physical, perpetual, or cyclical, depending on the size and turnover of the business.<\/p>\n

         <\/p>\n<\/li>\n

      • \n

        Record the information:<\/span> Note quantities, locations, lots, or expiration dates, as appropriate.<\/p>\n

         <\/p>\n<\/li>\n

      • \n

        Compare with previous records:<\/span> Verify that what is physically present matches what your systems indicate.<\/p>\n

         <\/p>\n<\/li>\n

      • \n

        Analyze differences<\/span>: if there are shortages or surpluses, look for causes (errors, losses, theft, or returns).<\/p>\n

         <\/p>\n<\/li>\n

      • \n

        Update the system: <\/span>Reflect the changes and generate reports that serve to make decisions about purchases and storage.<\/p>\n

         <\/p>\n<\/li>\n<\/ul>\n

        What are the differences between inventory control and inventory management?<\/h2>\n

        Inventory control and inventory management are two different concepts, although they are related to each other.<\/p>\n

        Inventory Control<\/h3>\n

        Inventory control refers to the process of monitoring and supervising the quantity and movements of items in an inventory. The main objective of inventory control is to ensure that the amount of raw material available is always sufficient to meet customer order demand, but not so much as to generate additional costs, such as storage and obsolescence.<\/p>\n

        Inventory Control Tools<\/h3>\n

        Inventory control tools are a set of techniques, methods, and software that help manage and control the movement of a company's inventory.<\/p>\n

        Some of the most common tools we would like to share with you are:<\/p>\n

        1. Inventory Management System:
        It is software designed to help companies manage their inventories efficiently. It allows tracking product stock, inventory entries and exits, expiration dates, and other important merchandise data.<\/p>\n

        2. Barcode Labels:<\/p>\n

        These are labels that are affixed to products and contain information about the product, such as its name, serial number, price, and location in the warehouse. They allow for quick and efficient scanning of products and prevent human errors.<\/p>\n

        3. ABC Analysis:
        It is a technique that classifies products according to their importance to the company. Products are divided into three categories: A, B, and C, based on their sales value and turnover frequency. This helps companies focus on the most important products and manage their inventory better.<\/p>\n

        4. Just-in-Time (JIT):
        It is an inventory management technique that involves the delivery of products just when they are needed. This reduces storage costs and minimizes the risk of obsolescence.<\/p>\n

        5. Continuous Review Program:
        It is a system that involves periodic review of the inventory to ensure that inventory levels are maintained within appropriate limits. This helps companies avoid unwanted inventory buildup and ensure they always have enough stock to meet demand.<\/p>\n

        6. Demand Forecasting:
        It is a technique that involves predicting future demand for products. This helps companies plan their inventory purchases in systems and avoid shortages or excess stock.<\/p>\n

        Inventory Management<\/h2>\n

        On the other hand, inventory management is a broader and more strategic approach to managing a company's inventory.<\/p>\n

        Inventory management involves planning and coordinating all tasks and activities related to inventory, from acquisition and storage to distribution and control.
        Inventory management also involves identifying and managing risks, such as obsolescence, expiration, and changes in demand.<\/p>\n

        Inventory control is an important part of inventory management, but inventory management is a broader and more strategic business function that encompasses the entire profitability and lifecycle of inventory.<\/p>\n

        So, what is an inventory control system for?<\/h3>\n

        At this point, we want to make it clear the importance of having an inventory control system for your company and the benefits that this tool brings for effective business health.<\/p>\n

        Some of the main functions, scenarios, and benefits of an inventory control system are listed below<\/p>\n

        \n

        1. Inventory Level Optimization:<\/h4>\n

        An inventory control system helps the company maintain the optimal inventory level. This means the company will have enough inventory to meet customer demand, but not so much that excess inventory accumulates, which can result in additional costs.<\/p>\n

        2. Cost Reduction:<\/h4>\n

        An inventory control system helps reduce costs associated with storage, maintenance, and administration of it.
        By having more effective control over goods and raw materials, the company can avoid having too much inventory that occupies valuable space and can also avoid the cost of running out of inventory.<\/p>\n

        3. Improvement in Supply Chain Management:<\/h4>\n

        An inventory control system can improve supply chain management. By having a detailed record, the company can better plan production and product delivery, which can improve efficiency and reduce waiting times.<\/p>\n

        4. Identification of Trends and Opportunities:<\/h4>\n

        An inventory control system can also provide valuable information about demand trends and market opportunities. By monitoring inventory and sales, the company can identify patterns and trends that can help make informed decisions about production and the launch of new products.
         
         <\/p>\n

         <\/p>\n

        <\/span><\/p>\n

         <\/h2>\n

         <\/h2>\n

        Consequences of Poor Inventory Control<\/p>\n<\/h2>\n

        Poor inventory control can have several negative consequences for a company, including:<\/p>\n

        Financial Losses:<\/h3>\n

        If the company does not have adequate control of its inventories, it can result in a lack of materials or products needed to fulfill customer orders. This can result in lost sales and a decrease in the company's income.
        In addition, a lack of control can lead to overproduction or overbuying, which means the company will have more inventory than it needs, which can result in additional costs and financial losses.<\/p>\n

        Quality Problems:<\/h3>\n

        Another problem can result in the delivery of defective products to customers. If the company does not have adequate control of the materials or does not perform adequate quality inspection, it can lead to the production of defective or low-quality products.<\/p>\n

        Delivery Time Problems:<\/h3>\n

        If the company does not have control of its inventories, it is possible that the delivery of products to customers will be delayed.
        If the company does not have enough inventory to meet customer demand, it can result in delays in product delivery and, ultimately, can lead to the loss of customers.<\/p>\n

        Space Problems:<\/h3>\n

        Another problem is the lack of space to store products. If the company has too much inventory stock, it may require additional storage space, which can result in additional rental costs.<\/p>\n

        Accounting problems:<\/h3>\n

        If the company does not have adequate control of its inventories, it can result in accounting problems. If the company does not have an adequate inventory recording system, it can lead to errors in accounting, which can lead to poor organization and financial decision-making.<\/p>\n

        SAP ERP module for inventory control<\/p>\n<\/h2>\n

        SAP ERP stands out as a comprehensive enterprise software solution that offers a complete set of modules to manage various business areas, including inventory control.<\/p>\n

        <\/h2>\n

        The Materials Management (MM) module of SAP ERP plays a fundamental role in optimizing companies' inventory, providing tools for:<\/p>\n

        1. Complete inventory visibility:<\/h3>\n
          \n
        • \n

          Real-time tracking: Allows you to monitor inventory from the receipt of materials to their dispatch, offering a complete view of available stock at all times.<\/p>\n

           <\/p>\n<\/li>\n

        • \n

          Precise location: Identifies the physical location of materials within the warehouse or in different logistics centers, facilitating access and control.<\/p>\n

           <\/p>\n<\/li>\n

        • \n

          Detailed traceability: Records the historical movement of each material, from its origin to its final destination, improving transparency and auditing of operations.<\/p>\n<\/li>\n<\/ul>\n

          2. Strategic materials planning:<\/h3>\n
            \n
          • \n

            Materials Requirements Planning (MRP): Anticipates future material demands based on planned production and current inventory levels, ensuring resource availability for manufacturing.<\/p>\n

             <\/p>\n<\/li>\n

          • \n

            Purchase optimization: Generates intelligent purchase suggestions considering available stock, delivery times, and supplier conditions, minimizing costs and avoiding stockouts.<\/p>\n

             <\/p>\n<\/li>\n

          • \n

            Efficient warehouse management: Defines storage strategies optimizing available space, product rotation, and picking and packing processes, reducing operating costs and improving logistics efficiency.<\/p>\n<\/li>\n<\/ul>\n

            3. Process automation and optimization:<\/h3>\n
              \n
            • \n

              Automated order management: Streamlines the material procurement process, from the creation of requests to receipt and invoicing, reducing administrative time and costs.<\/p>\n

               <\/p>\n<\/li>\n

            • \n

              Optimized workflow: Automates repetitive tasks and frees up time for employees to focus on higher-value strategic activities.<\/p>\n

               <\/p>\n<\/li>\n

            • \n

              Integration with other systems: Integrates with other SAP ERP modules, such as accounting and finance, to provide a holistic view of the business and facilitate informed decision-making.<\/p>\n<\/li>\n<\/ul>\n

              Overall, the SAP ERP MM module offers:<\/h3>\n
                \n
              • \n

                Greater control over inventory:<\/span> Allows companies to make informed decisions about their material needs, optimize stock levels, and reduce costs.<\/p>\n

                 <\/p>\n<\/li>\n

              • \n

                More efficient supply chain<\/span>Improves visibility, planning, and control of the flow of materials through the supply chain, reducing delivery times and logistics costs.<\/p>\n

                 <\/p>\n<\/li>\n

              • \n

                Improved decision-making<\/span>Provides accurate, real-time information to support strategic decision-making related to material management, purchasing, and logistics.<\/span><\/p>\n<\/li>\n<\/ul>\n

                SAP ERP thus becomes an indispensable tool for companies seeking to optimize their inventory management, improve supply chain efficiency, and make more informed strategic decisions to achieve their business goals.<\/p>\n

                \n

                Inventory management automation<\/h2>\n

                With the MM module, companies can automate the entire inventory management process, from receiving materials to issuing them.<\/p>\n

                The system also provides tools for inventory planning and monitoring, allowing companies to identify and resolve inventory problems before they affect productivity and costs.<\/p>\n

                Furthermore, SAP ERP also provides reporting and analysis tools, allowing users to access real-time reports and perform detailed inventory analysis.
                This helps them make informed decisions about inventory management and optimize processes to maximize periodicity and efficiency.<\/p>\n

                To conclude <\/h3>\n

                SAP ERP systems, such as Business One and S\/4HANA Public and Private, offer specific modules for inventory management. These systems allow companies to maintain complete control over their materials, maximize efficiency, and increase profitability.<\/p>\n

                If you have any questions about your company's inventories or would like more information about SAP's material management module, do not hesitate to contact us to resolve all your questions.<\/p>\n

                 <\/p>","protected":false},"excerpt":{"rendered":"

                 Updated: January 2026<\/span><\/em><\/p>\n

                <\/span>What is the importance of having good inventory control in your company? In this article, we explain how to optimize and have total control of your materials.
                <\/em><\/p>","protected":false},"author":4,"featured_media":349937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":["post-347499","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inventarios"],"_links":{"self":[{"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/posts\/347499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/comments?post=347499"}],"version-history":[{"count":1,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/posts\/347499\/revisions"}],"predecessor-version":[{"id":352942,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/posts\/347499\/revisions\/352942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/media\/349937"}],"wp:attachment":[{"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/media?parent=347499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/categories?post=347499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.xamai.com\/en\/wp-json\/wp\/v2\/tags?post=347499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}