What is a potential consequence of poor inventory control?

Poor inventory control can lead to higher inventory carrying costs due to a few key factors. When inventory levels are not optimized, excess stock can accumulate, which ties up capital and incurs costs related to storage, insurance, and potential obsolescence. Additionally, if there are inaccuracies in inventory tracking, it can result in overstocking or stockouts, both of which can provoke further financial strain.

In contrast, increased customer satisfaction, efficient supply chain operations, and improved supplier relationships typically arise from effective inventory management practices. These aspects underscore the need for proper inventory control to mitigate costs and enhance overall operational efficiency.