Stock Company Management is the management of stocks – items that require to be tracked and stored. They can comprise work in progress (partly finished materials and goods) or finished products, and consumables such as printer toner and stationery. Controlling stock is vital for cash flow and profitability.
There are many different methods of managing stock that you can choose from, and the one that is best for your business will depend on your specific industry and the kind of product you sell. For instance, certain companies utilize a computer software to track inventory and record costs. These programs are often integrated with point of sale machines as well as freight tracking systems. These programs are more expensive than manual records, but they can help eliminate mistakes and increase accuracy.
Other companies use a process known as Just In Time or JIT, which reduces costs for inventory and storage by reducing inventory to the minimum. This requires precise forecasting and a reliable supply chain, but can decrease customer service issues like out-of-stocks. Some companies also use a formula called Economic Order Quantity to determine how much stock to keep in order to balance the need for safety stocks with the expense of ordering and storing additional.
It is essential to establish procedures to ensure accurate stock records and examining them on a regular basis by conducting a regular audit or a complete stocktake. To prevent corruption and fraud It’s recommended to separate the staff who manage stock control from those who do finance and accounting.