Why small manufacturers need to rethink stock control — before the year-end surprises hit
The Hidden Cost of Misplaced Inventory
If you’ve ever spent more than a few minutes looking for a part you know is somewhere in the shop, this article is for you.
Running a manufacturing business is hard enough without the extra chaos of lost materials, duplicated orders, or year-end inventory write-downs. We know how overwhelming it gets — especially when your team is already stretched thin, and everyone sees inventory as just “another task” rather than part of the job.
Inventory Surprises: They’re More Common Than You Think
Every year, around fiscal year-end, many companies get a reality check. The numbers in the system say one thing, the shelves say something completely different. That’s when the team pulls out the clipboards, spends hours walking the floor, and inevitably discovers a painful gap — sometimes in the hundreds of thousands, even millions.
These mismatches don’t happen overnight. They’re the result of treating inventory as a “later” problem. But when “later” becomes now, you’re facing:
- Unplanned reorders of items already in stock
- Missed deliveries because a part isn’t where it should be
- Hours wasted trying to locate materials
- Lost money tied up in items no one needs
In some small companies, inventory processes are so loose that different people update the same item count at different times — and whoever enters it last becomes the system’s “truth.” That’s not a system. It’s a guessing game.
Why It Happens — and How to Break the Pattern
From what we’ve seen, most of these issues boil down to two things:
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Inventory updates aren’t part of the routine.
Teams often see them as an extra chore. Updates get delayed, rushed, or skipped entirely. -
There’s no system that fits the way people work.
On many shop floors, inventory systems are either too complex or too disconnected from daily operations. So they’re ignored.
There’s also the challenge of timing. Some companies try to count inventory while production is still running. It sounds efficient, but often leads to incorrect data. You might count a bin of parts, then an hour later someone pulls from it — and now the numbers are already off before they hit the system.
A Smarter Approach to Inventory
We believe inventory control doesn’t have to be hard, and it definitely shouldn’t be an afterthought. When your team has the right tools and mindset, stock updates become just another normal part of the workflow.
Here’s what that looks like:
- Real-time updates: Give your team simple ways to record usage and movements as they happen — not at the end of the shift.
- Shared responsibility: Make sure everyone understands why it matters. Inventory accuracy helps everyone, from purchasing to production to shipping.
- Designated support: Some companies create a “shop stock” desk or counter, staffed by one or two people. These employees act as the internal storekeepers — handling distribution and keeping records. It reduces the burden on everyone else while improving accuracy.
- Integrated systems: Whether it’s a barcode scan or a quick tablet entry, the key is connecting inventory movements to your central system. When inventory lives inside your ERP, it becomes part of your everyday decisions, not a once-a-year scramble.
It’s not about adding bureaucracy. It’s about removing confusion.
What You Can Gain from Better Stock Control
A well-managed inventory isn’t just neat shelves and labeled bins. It gives you:
- Confidence in your production schedules
- Fewer emergency purchases and last-minute freight charges
- Better cash flow with less money tied up in overstock
- Faster order fulfillment and happier customers
- A smoother year-end process with fewer surprises
And maybe most importantly, it gives your team more time to focus on what they do best — making great products.
Take One Small Step Toward a Big Change
You don’t need to overhaul your entire operation overnight. Start by asking a few simple questions:
- Do we trust the inventory numbers in our system today?
- How often do we reorder items we already have?
- Is our current process helping the team, or just creating frustration?
If the answers raise red flags, you’re not alone — and you’re not stuck.
At Nengatu, we help small and mid-sized manufacturers build inventory processes that actually work in real life. We’ve worked in shops like yours. We understand the chaos, and we also know how much smoother things can run with a few thoughtful changes.
Book a Call — Let’s Look at It Together
If you’ve faced any of the challenges we mentioned, now’s a good time to check whether your current systems (or lack of systems) are holding your company back.
Book a call with us, and we’ll help you assess where you are — and how to move toward a simpler, more reliable way to manage your inventory.