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 providing financial elasticity. Controlling inventory is accomplished by finding the perfect balance between buying, reorders and shipping storage, warehousing, receiving satisfaction from customers and loss reduction.
The practices of managing stock in the retail industry directly affect the satisfaction of customers, profitability, and competitive edge. Stocking up on enough inventory minimizes the chance that you will run out of stock, which can result in unhappy customers and lost sales. Stocking up on excess inventory can drain valuable working capital, and also increase the cost of storage. Optimized stock levels increase cash flow, decrease production downtime and improve productivity.
A robust and efficient stock management process starts with knowing the needs of your customers. The amount of inventory you have to keep can be determined by identifying your most sought-after products. A software application will help you to identify and value all your inventory. Barcoding technology can help staff keep their inventory in order, and also share information in real-time regarding warehouse locations as well as shipment status. Certain solutions also have demand forecasting functionality.
Just-in-time (JIT) is a different method for managing stock. It allows companies to buy raw materials in bulk, including items like motor oils which are considered to be evergreen and are sold quickly. This method requires a large amount of storage space, and a strict control is necessary to avoid delays that could lead to depletion of stock.