Stock Company Management is a system of both internal and external processes that ensures your company has the correct amount of inventory to meet customer demand while also ensuring financial elasticity. Successful inventory control requires the right balance between purchases, reorders transportation, warehousing, storage receiving, customer satisfaction as well as loss prevention.
In the retail sector Stock management practices directly affect the satisfaction of customers, their profitability, and competitive edge. Stocking up on enough inventory reduces the likelihood that you will run out of stock, which can cause unhappy customers and reduced sales. Insufficient inventory can tie up valuable working capital and increases storage costs. Stock levels that are optimized increase cash flow, cut production delays and boost productivity.
Understanding the needs of your customers is essential to develop an effective and efficient inventory management system. Knowing the most popular products you sell can help determine how much stock you should keep. Recognizing and valuing the entire inventory can be achieved with an efficient software solution. Barcoding technology can help staff keep track of inventory, and also share information in real-time regarding warehouse locations as well as shipment status. Certain solutions also offer demand forecasting capabilities.
Another approach to managing inventory is the Just In Time (JIT) model, which allows businesses to purchase raw materials in large quantities for items thought to be sustainable or sell quickly and consistently, for example, motor oil. However, this strategy can require a large amount of storage space and requires tight control to minimise delays that may lead to depletion of stock or the use of obsolete materials.
