Stock Company Management
Stock Company Management is a process to manage stocks, which are items that must be monitored and stored. Stocks can comprise work in progress (partly finished materials and goods) and finished products and consumables such as stationery and photocopier cartridges. Controlling stocks is vital to cash flow and profit.
Stock management techniques are varied and the one that is the best for your company depends on the type of products you offer and your industry. For instance, some companies utilize a computer software to monitor stock and track costs. These programs are often coupled with point-of sale machines and freight tracking systems. These programs are more expensive than manual records, however they can reduce the chance of errors and increase accuracy.
Other companies use a technique known as Just In Time or JIT, which reduces storage and inventory costs by reducing stock to a minimum. This requires accurate forecasting and a solid supply chain, however it can help reduce customer service issues like out-of-stocks. Certain companies also employ a formula called Economic Order Quantity to determine how much stock to keep that balances the need for safety stock with the cost of storing and ordering extra.
It is essential to establish procedures to keep accurate records of stock and checking them on a regular basis by conducting a regular audit or a complete stocktake. It’s also a good practice to separate the staff who handle the administration of stock control from those doing accounting and finance, in order to stop corruption and fraud.
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