Difference Between Inventory Management and Inventory Control

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Inventory Management and Inventory Control

Why read @ Diffzy

Our articles are well-researched

We make unbiased comparisons

Our content is free to access

We are a one-stop platform for finding differences and comparisons

We compare similar terms in both tabular forms as well as in points


In today's highly automated industrial environments, you are doing a disservice to your company if you do not automate your inventory. A person has to spend money on managing and controlling inventory before they can expect to get a higher return on their investments. Even though both "Inventory Management" and "Inventory Control" appear to refer to relatively similar processes, there are significant differences between the two in a manufacturing facility.

Management of the inventory and control of the inventory have certain similarities, but their primary foci are distinct. Forecasting and placing orders for goods are both handled by inventory management. Controlling the number of goods that is currently available is the responsibility of inventory control, which is a subset of inventory management.

Inventory Management vs Inventory Control

The primary distinction between inventory control and inventory management is that inventory control refers to the process of dealing with and monitoring stock that is already in hand, whereas inventory management is concerned with predicting and ordering stock to manufacture goods. The term "stock control" refers to a sub-category of "inventory control," which is a part of "inventory management." Controlling inventories is the major responsibility, whereas managing inventories fall under the secondary category.

The act of storing, placing orders for, making use of, and ultimately selling a company's stock is what is meant by the phrase "Inventory Management." The administration of several different components, including raw material, completed products, objects stored in warehouses, and works-in-progress is included in this process. Recurring duties that fall within the purview of Inventory Management include proactive forecasting and the reordering of raw materials.

The process of controlling the amount of stock that a corporation maintains is referred to as "Inventory Control," and its name comes from the phrase. It is beneficial to an organization's efforts to reduce the danger of running out of supplies. In addition to this, it verifies whether or not the quality of the goods is suitable for sale. Controlling inventory is a procedure that is carried out daily at the warehouse of a firm to reduce the amount of merchandise that is wasted.

The different responsibilities that fall under the umbrella of each facet of inventory control and management are what make up the primary distinction between the two. In contrast to inventory control, which is concerned with making sure that the items stored in the warehouse are in satisfactory condition, inventory management is centered on the process of reordering supplies. The first step for businesses that want to enhance their inventory management is to have a better handle on their inventory. Companies can deliver their items to clients without any delays or stock-out problems if they have effective inventory control and management system in place.

Difference Between Inventory Management and Inventory Control in Tabular Form

Parameters of Comparison Inventory Management Inventory Control
Meaning The practice of anticipating and placing new orders for commodities inside a business is known as inventory management. The process of managing the amount of merchandise that is kept in a company's warehouse is referred to as inventory control.
Purpose The goal of inventory management is to maintain a healthy equilibrium between supply and demand in the marketplace. The management of inventories makes it possible to reduce the likelihood that products would be stolen or wasted.
Scope The term "Inventory Management" refers to a broad category of endeavours. Due to the fact that it is just a component of Inventory Management, its scope is somewhat limited in comparison to that of Inventory Management.
Focus The question of when to place an order is at the centre of inventory management. How much should be ordered, and where should it be ordered from? The primary objective of inventory control is to protect merchandise from being broken or spoiled in any way.
Monitoring Depending on the size of the company, inventory management may be a task that is conducted once every week or once every month. Every single day, control of the inventory is carried out.

What is Inventory Management?

The whole process of managing inventories, beginning with the purchase of raw materials and continuing through the sale of completed items, is referred to as "Inventory Management." Standardizing the ordering process simplifies the process of avoiding excesses as well as shortages. JIT (Just In Time) and MRP (Minimum Reorder Point) are the two most used strategies to manage inventory (Material Requirement Planning).

A company's image might take a hit if they mismanage its inventory or run out of it entirely, which is a costly problem. When it comes to the expansion and development of a manufacturing unit, having efficient inventory management software may do wonders. The enterprise resource planning (ERP) management software used in large firms provides support for it. Helps the organization determine how much of a certain amount to order at when a point in time.

The Inventory Management system maintains a record of all commodities, from the initial purchase of raw materials to the ultimate sale of finished products. Keeping the stocks in check can play a very important part in the administration of a firm. Inventory management has several advantages, the most important of which are cost savings and an increase in available cash.

It is an essential word that connotes having the right stock at the right moment, in the right location, and with the right goal in mind at the right price. Inventory management contributes to the uninterrupted movement of the supply chain by regulating and supervising the purchasing process.

The process of ordering, storing, and utilizing inventory is managed through inventory management. This includes managing the inventory at the level of the raw materials utilized as well as the final items. The management of inventories enables companies to choose which stocks to purchase, how much stock to buy, and when to order it.

Tracking the lifecycle of raw and finished goods, from the moment of ordering a product from suppliers to the moment of delivering it to customers and everything in between, is the practice that is sometimes referred to as stock management. This practice involves tracking the entire lifecycle of raw and finished goods. The management of inventory is an essential component of the supply chain.

Its purpose is to guarantee that a company has enough stock on hand to satisfy the orders placed by customers but not more than it can sell.

For instance, a taco truck may utilize its inventory data to accurately forecast that it would need five pounds of tomatoes for the next week. The company will not lose money by discarding overripe tomatoes that it is unable to employ in any of its processes. In a similar vein, an event planner won't waste money renting additional space to keep paper cups that she won't use since she doesn't intend to use them.

The activities of predicting and replenishing inventory are referred to as inventory management. This activity is centered on determining when to order the inventory, how much to order, and from whom to order the inventory.

What is Inventory Control?

The process of determining how much inventory should be kept by a corporation and reviewing the results to reduce the quantity of stock that is wasted is what is meant by the phrase "Inventory Control." Its primary purpose was to accomplish the reduction in the number of products with poor sales performance at the firm and the growth in the number of products with strong sales performance at the company. It helps save time and money by preventing things like damage and theft.

Through the implementation of an Inventory control system inside the organization, the unusual costs may be avoided. Them prevents the firm from making impulsive decisions that might end up costing it money. It is impossible to manage complex inventory control with a pen-and-paper approach; instead, you will need to use either dedicated software or excel sheets. There is a plentiful supply of software services available on the market today for managing overall inventory. The condition of the inventory should be effectively controlled, and this state should be verified using the inventory control method.

With the assistance of an inventory management system, one may determine the ideal quantity of each stock item, as well as the raw materials and completed items, that should be kept in the shop or warehouse. It keeps track of how the Inventory is being used and moved around. The end objective of this procedure is to identify the stocks in the firm that will result in the greatest possible profits. Since it is responsible for managing the stock that is already in the company's possession, it does not affect either the sale or the procurement of goods.

The process of managing inventories often includes control of the inventories. It is the routine task of overseeing the management of the goods inside the warehouse. Activities are related to inventory management including receiving, storing, and transferring goods; monitoring and completing orders and returns; and transporting inventory between locations.

Having complete command over the rotation of your product is an essential component of effective inventory management on a larger scale, which is why it's so crucial to take charge of it. When you define the flow of stock, you guarantee that you will have complete control over which goods will be utilized to fulfill client orders and when those orders will be fulfilled. You can control how merchandise is distributed to fulfill client requests depending on the product portfolio you provide.

Controlling the number of goods held in stock in a company's warehouse is one of the functions of inventory control. This involves making certain that there will not be any instances of stock running out, as well as determining which things are being stocked and in what quantities. In addition, proper inventory management should guarantee that all of the things are kept in a state where they may be used. Keeping an inventory is a costly endeavor because of the expenses of storage and insurance. The following are some procedures that may be taken to guarantee that an effective inventory control system is implemented.

Main Differences Between Inventory Management and Inventory Control in Points

  • Inventory management serves to expedite the ordering process in a firm, while inventory control helps to keep a daily record of inventories in a warehouse. Both of these processes assist to ensure that the company is operating as efficiently as possible.
  • On the other hand, although inventory control may be done manually, inventory management is most effectively done with the assistance of ERP software.
  • Inventory Control is often the responsibility of a storekeeper or warehouse keeper, while Inventory Management is the responsibility of the individual who is in charge of the inventory.
  • Inventory Management locates stockouts and overstocks by collecting data on inventory in near- and real-time, often via the use of barcodes or RFID. barcodes or RFID technology may be used by Inventory Control to monitor and keep a record of inventory transactions.
  • Inventory Management and Inventory Control are two processes that work together to improve warehouse layout and storage of merchandise. Inventory Management improves warehouse layout, while Inventory Control delivers warnings concerning low stock levels or expiry dates.
  • The act of forecasting demand and placing orders for new stock are both components of inventory management. When discussing inventory management, "inventory control" refers to the practice of maintaining track of the actual stock of a company's items at its warehouses or distribution centers.
  • In contrast to inventory control, inventory management focuses on restocking items, whereas inventory control is concerned with ensuring that the goods stored in the warehouse remain in pristine condition.
  • Inventory management is a term used to describe activities and measures used to control and sustain inventory demand and replenishment. Instead, inventory control is the act of designing and implementing policies to manage stock from the moment it is obtained until a final product is converted.


A crucial aspect of inventory management is the implementation of efficient monitoring of stock. Controlling inventories enables businesses to improve their cash flow while also cutting down on unnecessary spending. Inventory control and proper management are two aspects of a company that is essential to the achievement of maximum profits, regardless of the size of the company.

They both carry out their duties hand in hand with the other. Obtaining efficient outcomes in both Inventory control and Inventory management may be accomplished using cutting-edge software that can help you preserve the money you've worked so hard to achieve. The ability to sell at the right moment and buy at the right time is something that every organization needs. The data used by inventory management comes from inventory control, and it is used to analyze historical patterns. It is necessary to have improved control over one's inventory to have better management.


  1. https://pubsonline.informs.org/doi/abs/10.1287/mnsc.36.4.490
  2. https://www.sciencedirect.com/science/article/abs/pii/S037722179600255X


Cite this article

Use the citation below to add this article to your bibliography:



MLA Style Citation

"Difference Between Inventory Management and Inventory Control." Diffzy.com, 2023. Sun. 04 Jun. 2023. <https://www.diffzy.com/article/difference-between-inventory-management-and-inventory-control-445>.

Edited by

Share this article