Stock Company Management is an internal and external system that makes sure you have the right amount of inventory to meet demand from customers while ensuring financial flexibility. Controlling inventory is achieved through finding the right balance between buying, reorders and shipping storage, warehousing, receiving satisfaction from customers and loss reduction.
The practices of managing stock in the retail sector directly affect customer satisfaction, profitability, and competitive edge. Being able to stock enough inventory reduces the chance of stock-outs, which could cause unhappy customers and a loss of sales. Stocking up on inventory that is not needed can tie up valuable working capital and increase storage costs. The optimal stock levels improve cash flow, decrease production interruptions and increase productivity.
In order to create a reliable and efficient inventory management system starts by understanding the requirements of your clients. The most popular items you sell can help you determine how much inventory you need to keep. A software solution can help you identify and evaluate all your inventory. Barcoding technology can help staff keep track of inventory, and allows them to share live data regarding warehouse locations as well as shipment status. Some solutions also include demand forecasting capabilities.
Another method of managing stock is the Just In Time (JIT) model, which permits businesses to purchase raw materials in huge quantities for items generally considered to be in demand and consistently, such as motor oil. This method requires a lot of storage space, and a strict control is required to avoid delays that could lead to the depletion of stocks.