{"id":574,"date":"2018-04-11T12:25:43","date_gmt":"2018-04-11T10:25:43","guid":{"rendered":"https:\/\/sage-new-clone.local\/en-za\/blog\/?p=459"},"modified":"2026-02-04T16:57:19","modified_gmt":"2026-02-04T14:57:19","slug":"inventory-management-guide","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/inventory-management-guide\/","title":{"rendered":"Guide to inventory management and stock control"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tBusiness process<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tGuide to inventory management and stock control\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Ashley\t\t\t\tAshley Thompson<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

\u2018Stock\u2019 is a word that retail and manufacturing companies use to describe the goods they currently hold that they plan to sell to customers.<\/p>\n\n\n\n

Inventory management and stock control are interrelated activities that ensure your stock is effectively organised.<\/p>\n\n\n\n

In this article, you\u2019ll learn about the key concepts of stock management and inventory types. You\u2019ll also get guidance on inventory management for small businesses.<\/p>\n\n\n\n

What is inventory management?<\/h2>\n\n\n\n

Inventory, or stock management is a process that ensures you have the right amount of stock, in the right place, at the right time. It involves understanding your customers\u2019 buying patterns and meeting demand, without over- or under-stocking.<\/p>\n\n\n\n

Let\u2019s say you run a supermarket chain without an efficient stock management process. You might find that you have more chicken in stock than you can sell. Or not enough rice. This could persuade your customers to go to your competitors instead.<\/p>\n\n\n\n

Inventory management is also about planning for fluctuations in demand. For example, ensuring you have extra food available in the run-up to the holidays.<\/p>\n\n\n\n

What is inventory control?<\/h2>\n\n\n\n

Inventory control involves knowing where your goods are at any time. It helps you make the best decisions about how you organise and distribute stock.<\/p>\n\n\n\n

Efficient stock control means you can find any product, whenever you need it.<\/p>\n\n\n\n

Take our supermarket example again. A good stock control process makes it easier for the store to respond to changes in demand, like selling out of soft drinks during one hot morning. With good grasp of stock control, the store would have sent a driver to get more stock from the warehouse, before the existing stock ran out.<\/p>\n\n\n\n

Types of inventory<\/h2>\n\n\n\n

Different industries have different inventory types. Inventory management is often thought of in relation to retail and manufacturing. But there are various types of inventory that relate to logistics, catering, and even some service organisations.<\/p>\n\n\n\n

Here are the main inventory types that your business may need to manage:<\/p>\n\n\n\n