Stock control is conducted by businesses to track and account for products that are sold, used or manufactured. If you sell products, stock control is an important aspect of managing your business.
Here are 5 stock control tips to ensure you have an effective stock management system:
1. Avoid extra costs
- High volumes of stock can cause a shortage in your cash flow and increase costs due to excess storage requirements.
2. Avoid decreased income
- Low volumes of stock that do not meet customer demand will lead to loss of income in terms of sales. This can encourage customers to source the products from your competitors and possibly damage your reputation in terms of customer service.
3. Find a supplier right for you
- Work with you suppliers to see if they can hold stock for you or ship directly to your customer on your behalf. This can reduce your stock control costs and could be more efficient and provide a better customer service.
4. Buying Stock
- Consider the shelf life of your stock. With perishable goods and technology that is constantly renewed you need to ‘use it or lose it’
- Assess the stock levels you require to meet demand and note when you need to order stock and amounts to be ordered. Check on a regular basis to get to know the levels of demand.
5. Keep track of your stock
- Ensure that you have a computer-based stock management system that suits the needs of your business
- Implement an effective system for tracking stock that you have bought and sold
- Keep track of items that are season reactive and ensure that stock is available at those times and volumes are lowered when demand declines
By managing your stock effectively, you can avoid loss of goods, increased expense of holding goods and have the correct amount of goods to meet demand.