Stock Company Management

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Stock Company Management is the process of managing stocks – items that require to be logged and stored. They could include work in progress (partly completed materials and goods) or products that are finished, as well as consumables like photocopier and stationery. Controlling stock is vital for cash flow and profit.

Techniques for managing stock vary and the one that is most suitable for your business depends on the products you sell and your industry. For instance, certain companies employ a computer-based program to track inventory and record costs. These programs are usually connected to point-of-sale machines as well as a freight tracking system. These programs are more expensive than manual records, but they can reduce the chance of mistakes and improve accuracy.

Other companies use a technique called Just In Time or JIT, which reduces storage and inventory costs by reducing stock to a minimum. This requires precise forecasting and a reliable supply chain, however it can reduce customer service problems like out-of-stocks. Some companies also utilize the formula known as Economic Order Quantity to determine the amount of stock to keep in order to balance the need for safety stock with the cost of storing and ordering extra.

It’s important to set up procedures for keeping accurate records of stock and checking them regularly by conducting a regular audit or a complete stocktake. To avoid corruption and fraud It’s recommended to separate the staff who manage stock control from those who do accounting and finance.