Stock Company Management is a process that explains how an organisation tracks and records the stocks (items) it has bought, sold or owns. It can cover raw materials and work in progress as well as finished products and spare parts.
It is essential to have enough stock to meet the demand. A lack of inventory means that you are likely to miss sales opportunities, and excess stock could drain your funds and increase the cost of storage. The optimal level is defined by analysing your sales forecasts, warehouse and distribution processes, as well as the performance of your suppliers.
Controlling stock is all about accurately tracking and recording stocks. This can be accomplished either manually or with computer software that integrates with your point of sales (POS) system or client management software. These systems monitor and record the stock levels in real time, alerting you to low stocks before they become a problem.
It is essential to examine your stock turnover rate frequently and to look for patterns. For instance, if have lots of items that don’t sell as quickly and are consuming valuable warehouse space, consider not ordering these products again in the near future and focusing your efforts on marketing to boost sales of more popular items. Be aware that factors outside your control could affect your overall stock turnover, such as changes in supplier prices and the difficulty of finding raw materials. You can get reports from suppliers as well as industry peak bodies that report on the changes. You can also consult your business advisor for advice on specific stock management strategies.
