What happens during inventory control?

Inventory controlling involves managing and supporting the optimization of a company’s stock and inventory assets. It is a key component of warehouse management and helps in planning operational ordering processes and warehouse infrastructure. From a logistics perspective, inventory controlling monitors inventory development and product assortment composition, enabling strategic distribution within the warehouse. One goal is the identification and possible relocation of slow-moving or non-moving items.

From an accounting perspective, inventory offers flexibility due to its short-term asset classification, allowing companies to streamline warehouse holdings and reduce tied-up capital.

Inventory is not a control variable in the strictest sense but serves to provide transparency across departments, forming the basis for collaborative operational decision-making. These decisions aim to optimize four key areas: customer service (delivery reliability), processes (resource allocation), costs (scrap rates and inventory reach), and employee safety (accident rate).