Inventory control problems occur when a company does not accurately record inventories of its products being brought in or shipped out. Making an inventory mistake could result in a company ordering too many products or being set to ship out more product than what it has in stock.

Poor Processes

Many companies do not realize that inventory problems arise from having poor processes in place. An example of a poor process would be if you reported a product inventory without verifying the count. Processes such as accurately keeping record of your inventory and sales, monitoring changes and responding to alerts in a proactive manner will help a company run more efficient and problem-free.

Business Practices

In an attempt to correct inventory control problems, companies are forced to develop a set of rules and/or practices that will move them in the right direction. Common practices used to improve inventory issues include having two or three employees counting inventory to find discrepancies, checking that all data entry has been done accurately, and properly training employees in inventory management procedures.

Antiquated Support Systems

Inventory control problems can result from an antiquated support system that keeps a company from accurately tracking data that has been entered. An example would be a system application product. These systems can prevent companies from running at their highest efficiency.