Stock Company Management is a process that explains how an company tracks and records the stocks (items) it has purchased, sold or owns. It can include raw materials, work-in progress, finished goods, and spare parts.
The proper amount of inventory on hand is vital to meeting the demand. You could miss out on sales in the event you have inadequate inventory, however having too much could increase your storage costs and encumber your cash. The ideal amount is determined by looking at your sales forecasts, warehousing and distribution processes, and your suppliers’ performance.
The most important aspect of effective stock control is recording and tracking your stocks and this can be accomplished manually or using a computer software package that links to your point of sale (POS) system or client management software. These systems monitor and track the status of your stock in real-time, alerting you to low stocks before they cause problems.
It is important to regularly check your turnover rates and look for patterns. If you have many products that aren’t selling and are taking up valuable warehouse space, think about not purchasing them again in the near future and instead focus on marketing and driving sales of better-selling products. Keep in mind that your overall stock turnover rate could be affected by events outside of your control, like a change in supplier prices or difficulty in sourcing raw materials. You can get reports from suppliers and peak bodies that detail these variations. You can also ask your business advisor for advice on specific management strategies.