Stock Company Management is a method for managing stocks, which are things that need to be monitored and stored. Stocks can comprise work in progress (partly completed materials and goods) and finished products and consumables like photocopier and stationery cartridges. The cost of managing these stocks could be a significant percentage of the capital that is invested in a business, and effective stock control is vital to ensure cash flow and profitability.
Stock management techniques are varied and the one that is best for your business depends on the products you sell and your industry. For instance, some companies utilize a computer software to track stock https://boardtime.blo and record costs. These programs are typically integrated with point-of-sale equipment and freight tracking system. These programs are more expensive than manual records, but they can eliminate mistakes and increase accuracy.
Some companies employ a process called Just In Time (JIT), which reduces inventory and storage costs by keeping the amount of stock available to a minimal. This requires accurate forecasting and a solid supply chain, but can alleviate customer service issues like out-of-stocks. Some companies also employ a formula known as Economic Order Quantity to determine how much stock to store, which balances the need for safety stocks with the expense of storing and ordering additional.
It is important to establish procedures for maintaining accurate stock records and then checking them regularly. This can be done through periodic reviews or a complete inventory. It’s also a good idea to separate the employees who are in charge of the administration of the stock control from those who are responsible for accounting and finance, to avoid corruption and fraud.
