Stock Company Management
Stock Company Management is a process that explains how an organization tracks and records stocks (items) it has purchased or sold. It can include raw materials, work in progress, finished products and spare parts.
It is vital to have enough inventory in order to meet demand. You could lose sales when you have a small inventory, but having too much could increase the cost of storage and cause a lot of money to be held. The ideal level of inventory is determined through analyzing sales forecasts, warehouse and distribution processes, as well as the performance of your suppliers.
Stock control is about accurately recording and tracking the stock levels. This can be done either manually or using computer software that is linked to your point of sale (POS) system or your client management software. These systems monitor and track the status of your stock in real-time and alert you to low stocks before they become a problem.
It is important to evaluate your stock turnover rate frequently and look for patterns. If you have lots of items that are slow sellers 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. Also, remember that your stock turnover rate can be affected by external factors beyond your control, like changes in the prices of suppliers or the difficulty of getting raw materials. You can get reports from suppliers as well as industry peak bodies that highlight the fluctuations. You can also consult your business advisor for guidance on specific stock management techniques.