Stock Company Management is a system of external and internal processes that ensures your company has the appropriate amount of inventory to meet demand from customers while delivering financial flexibility. Achieving effective inventory control requires the right balance between reorders, purchases, storage, shipping, warehousing receiving, satisfaction with customers as well as loss prevention.
In the retail industry the practices of stock management directly impact the satisfaction of customers, profitability and competitive edge. In addition, having enough inventory reduces the likelihood that you’ll run out of stock, which could result in unhappy customers and reduced sales. Stocking up on inventory that is not needed can clog up valuable working capital, and increase storage costs. Stock levels that are optimized increase cash flow, cut the time between production and downtime, and increase productivity.
Understanding the needs of your clients is essential to developing a robust, efficient inventory management system. Recognizing your most popular products can help determine how much inventory you should hold. Finding and valuing your inventory can be accomplished with an efficient software solution. Barcoding technology allows staff to keep the track of inventory and also to share real-time information about warehouse locations and shipment status. Certain solutions offer demand forecasting capabilities.
Another stock management approach is the Just In Time (JIT) model, which allows companies to purchase raw materials in bulk for items that are considered to be evergreen or sell quickly and consistently, such as motor oil. However, this method can require a large amount of storage space and requires strict control to avoid delays which look at this now could result in depletion of stocks or a deterioration of materials.
