Stock Company Management is a process for managing stocks which are items that need to be tracked and stored. They could comprise work in progress (partly finished goods and materials) or finished products, as well as consumables such as photocopier and stationery. Controlling stock is vital for cash flow and profit.
Different methods of managing stock and the one that is the best for your company depends on the kind of products you sell and your industry. For instance, some businesses employ a computer program to track stock and record costs. These programs are usually integrated with point-of-sale equipment and freight tracking systems. These programs are more expensive than manual records, however they can eliminate errors and increase accuracy.
Certain companies employ a method called Just In Time (JIT), which reduces inventory and storage costs by reducing stock to a minimum. This requires precise forecasting and a reliable supply chain, but it can help reduce customer service issues such as out-of-stocks. Certain companies employ a method known as Economic Order Quantity (EoQ) to determine how much security stocks to keep. This formula balances the need to order and store extra with the cost of ordering and store it.
It is essential to establish procedures for keeping accurate records of inventory, and checking them regularly. This can be accomplished through periodic reviews or a complete inventory. It is also a good idea to separate employees handling the administration of stock control from those involved in accounting and finance, to avoid corruption boardtime.blog and fraud.