Stock Company Management is an internal and external system that guarantees you have the right amount of stock to meet customer demand while ensuring financial flexibility. Controlling inventory is achieved by finding the perfect balance between buying, reorders and shipping storage, warehousing, receiving satisfaction from customers and loss reduction.
Management of stock practices in the retail industry directly impact customer satisfaction, profitability, and competitive edge. By stocking enough inventory, it minimizes the chance that you will run out of stock, which can cause unhappy customers as well as lost sales. Insufficient inventory can tie up valuable working capital and increases storage costs. Stock levels that are optimal increase cash flow and efficiency, while reducing production downtime.
In order to create a reliable and efficient stock management process starts with knowing the needs of your customers. Knowing the most popular products you sell will help you determine the amount of stock you should keep. Recognizing and valuing the entire inventory can be done using an efficient software program. The use of barcode technology allows staff to keep track of inventory and communicate real-time information about warehouse places and the status of shipment status. Certain solutions offer demand forecasting capabilities.
Just-in-time (JIT) is yet another method of managing stocks. It allows companies to purchase raw materials in bulk, for products such as motor oil, which are considered to be evergreen and are sold quickly. However, this method may require a large amount of storage space and requires strict control to minimise delays which could result in depletion of stock or the use of obsolete materials.
