What is stock management?
Stock management is the management of items and raw materials that move into and out of a warehouse or business. Inventory management includes planning stock requirements, ordering, receiving, putting into stock, issuing, accounting as well as inventory tracking. The goal of inventory management is to maintain an optimal level of inventory to meet production and sales needs while minimizing warehousing and ordering costs.
How to ensure an effective inventory management?
Use a computerised stock management system
By using a computerised inventory management system, a business can track stock inflows and outflows, as well as different stock levels, in real time.
Establish an automatic ordering system
By establishing an automated ordering system, a business can automatically order products based on different inventory levels and expected demand.
Use an appropriate storage method
By opting for an appropriate storage method, such as inventory rotation, a company increases its chances of maximising its storage space and thus minimising its inventory losses.
Analyse data
By working on data analysis tools, a business can track sales trends and inventory levels. This way, it can predict future needs and make informed decisions regarding inventory management.
Forecasting and planning
By manipulating forecasting techniques, a business can assess future inventory needs and plan orders accordingly.
Communicate effectively
By maintaining effective communication with suppliers, a company ensures that deliveries will be made smoothly.
What are the advantages of effective inventory management?
Cost reduction
Effective stock management helps minimise costs related to excessive purchasing, storage and product rotation.
Satisfied customer
Effective inventory management ensures product availability to meet customer needs, thereby increasing customer satisfaction and loyalty.
Improve profitability
Effective stock management helps increase profit margins by reducing costs and increasing sales.
Predict shortages
Effective stock management anticipates product needs and avoids shortages that could slow down sales.
Optimise space
Efficient inventory management maximises the use of available storage space, thereby reducing various rental costs.
Who is responsible for a company’s stock management?
Typically, a company’s inventory management is carried out by the purchasing or logistics department, which is responsible for planning, acquisition, receiving, storage and distribution. Employees who deal with stock management can be buyers, inventory managers, logistics managers, etc.
What are the tools for an effective stock management?
To ensure effective stock management, specific tools are frequently used such as computerised stock management systems, barcodes and barcode readers, RFID tags, motion sensors, surveillance cameras as well as as real-time stock tracking tables. Note that it is important to properly train employees, who also play a role in the efficiency of a company’s inventory management.