Stock Company Management is a process that describes how an organisation tracks and records the stocks (items) it has bought, sold or owns. It can cover raw materials such as work in process, finished goods and spare parts.

Having the right amount of inventory on hand is essential for meeting the demand. If you have a small inventory, you could miss out on sales opportunities, while excess stock can tie up your money and increase the cost of storage. The optimal level of inventory is determined through analyzing sales forecasts as well as warehouse and distribution processes and the performance of your suppliers.

The key to effective stock control is accurately keeping track of your stock and this can be accomplished by hand or with software that connects to your point of sale (POS) system or client management software. These systems monitor and record the status of your stock in real-time, alerting you to low stocks before they cause problems.

It is crucial to regularly examine your turnover rates and search for patterns. For instance, if you have a lot of items that don’t sell as quickly and are consuming your valuable warehouse space, consider not reordering these items in the future, and instead focusing on marketing to drive further sales of items that are more popular. Also, remember that your total stock turnover rate can be affected by factors outside your control, for instance changes in the prices of suppliers or difficulties in sourcing raw materials. There are reports from suppliers and industry peak bodies that detail the fluctuations. You can also consult your business advisor for guidance on specific stock management strategies.

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