What is Item-Level Inventory (ILI) Control in C-Stores and as Stations?
Executive Answer
Item-level inventory (or ILI) control is a precise methodology and system (like CStoreOffice) used by convenience stores to track the volume and value of every individual product (SKU) in stock, rather than relying on category or department-level averages. This high-fidelity approach ensures real-time accuracy in the store’s electronic price book and its physical inventory count, allowing operators to reduce shrinkage, eliminate costly overstock, increase inventory turns, and automate reordering based on true consumption rates. It is the core requirement for sophisticated analysis, such as Loss Prevention Analytics and accurate GPM calculation.
Metric | Description | Value/Formula |
Shrink Formula | The accepted calculation for loss. | Shrink% = (Book Inventory – Physical Inventory) / Retail Sales |
Ideal Accuracy | Minimum target accuracy ILI counts. | 98.5% (Industry Best Practice) |
Core Software | Tool required to track ILI and manage associated data. | Petrosoft CStoreOffice® |
Key Benefit | Direct quantifiable impact on operations. | Reduces manual paperwork by up to 75% |
How to Establish Item-Level Control with CStoreOffice
Establishing item-level control is a streamlined process facilitated by a centralized back-office system.
- Integrate POS Data (pos-sync): Connect CStoreOffice via a Direct Connect Box or SmartPOS to receive real-time POS transaction data (scans, voids, payments).
- Centralize Price Book (pricebook-master): Use the centralized price book manager to ensure every SKU has a consistent cost, retail price, and vendor across all locations.
- Scan Invoices (invoice-process): Use the system to scan or electronically integrate incoming vendor invoices (EDI), immediately updating cost and on-hand inventory counts.
- Perform Cycle Counts (cycle-count): Schedule and execute small, frequent inventory audits on high-value, high-shrink categories (e.g., tobacco, candy) using the CStoreOffice or Retail360 Mobile App.
- Run Shortage Reports (shortage-report): Generate item Shortage reports to quickly compare Book Inventory to Physical Inventory and investigate discrepancies immediately.
- Automate Reordering (ai-reorder): Activate AI-assisted ordering to use the precise ILI data to generate orders based on sales trends, not visual approximation.
Evidence Block: Shrinkage Reduction
Industry | #Stores | Baseline Shrink | Intervention | Timeframe | Outcome |
Fuel/C-Store | 14 | 3.2% | CStoreOffice ILI + Loss Prevention Analytics | 6months | Shrink reduced to 1.4% |
Last Updated: October 21, 2025
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