Stock Company Management is the process of managing stocks, i.e. items that need to be logged and stored. Stocks can comprise work in progress (partly finished materials and goods) as well as finished goods and consumables like photocopier cartridges and stationery. The cost of managing these stocks could be a significant percentage of the capital investment in a company, which is why the need for effective stock control is essential for cash flow and profitability.
Techniques for managing stock vary, and which one is best for your business depends on the products you offer and your industry. For instance, some companies use a computer program to track inventory and record costs. These programs often integrate with point of sale equipment and freight tracking systems. These programs are more expensive than manual records, but they can reduce the chance of errors and improve accuracy.
Other companies use a technique known as Just In Time or JIT, which reduces storage and inventory costs by reducing inventory to a minimum. This method requires accurate forecasting and reliable supply networks, and can help reduce customer service issues like out of stock. Certain companies employ a method called Economic Order Quantity (EoQ) to determine how much safety stocks to keep. This formula is a way of balancing the need to purchase and store extra stock, as well as the cost to order and store it.
It is essential to establish boardtime.blog procedures for keeping accurate stock records and checking them on a regular basis whether through a regular audit or a full stocktake. To stop corruption and fraud it is recommended to separate the employees who manage the control of stock from those who do accounting and finance.