An inventory control system is a method by which businesses can monitor and control the flow of goods through their supply chain. The process begins when goods are purchased, shipped, and received. From this point on, the company's inventory is managed by tracking the movement of goods from one department to another. Inventory control systems have special software that manages and organizes this process.
What is an Inventory Control System?
An inventory control system (ICS) is a computerized system that controls the acquisition, storage, and movement of products by organizing and tracking data about items in an inventory. The ICS helps to ensure that products are available when they are needed and that inventories are maintained at an appropriate level. It can also help to optimize production by identifying when products are being produced too quickly or in large quantities and adjusting production accordingly. To know more about inventory control software you can simply browse the web.
Types of Inventory Control Systems
There are a few different types of inventory control systems, but all of them involve keeping track of what's being sold and used in a company.
The most common type of inventory control system is the purchase order system. Companies use this system to track what they buy from suppliers. The purchase order system works like this:
Supplier A sends a purchase order to supplier B. The purchase order says what supplier B must buy from supplier A. The purchase order also says how much supplier A expects to spend on that product.
Supplier B looks at the purchase order and decides whether or not to accept it. Supplier B also decides how many suppliers A should pay for the products in the purchase order. After supplier B accepts the purchase order, it sends a copy of the purchase order to supplier C. Supplier C must also buy products from supplier A. Supplier C adds its own price and quantity to the bottom of the purchase order, and sends the entire package back to supplier B.