Stock Company Management is the process by which an organisation keeps the track of and records its inventory (items), whether they were purchased and sold, or owned. It can be used to cover raw materials and work in progress as well as finished goods and spare parts.
Having the right amount of inventory available is essential to meet the demand. It is possible to lose sales when you have a small inventory, however having too much inventory can increase your storage costs and tie up money. The optimal level is defined by looking at your sales forecasts, warehousing and distribution processes, as well as the performance of your suppliers.
Controlling stock is all about accurately tracking and recording the inventory. This can be accomplished by hand or through computer software that integrates with your point of sales (POS) system or your client management software. These systems track and monitor the status of your stock in real time and notify you of low stock levels before it becomes an issue.
It is crucial to regularly examine https://boardtime.blog/what-is-a-companys-duty-to-its-shareholders your turnover rates and search for patterns. For instance, if have a lot of items that don’t sell as quickly and are tying up your valuable warehouse space, consider not ordering these products again in the near future and focusing your efforts on marketing to boost sales of more popular items. Keep in mind that a variety of factors that are not your responsibility can impact your overall stock turnover for example, price fluctuations from suppliers and the difficulty in sourcing raw materials. You can get reports from both suppliers and industry peak bodies that reveal these fluctuations. You can also consult your business advisor for guidance on specific stock management strategies.
