Stock Company Management is the process of managing stocks, i.e. items that need to be categorized and stored. Stocks can comprise work in progress (partly finished materials and goods) and finished products and consumables like stationery www.boardtime.blog/what-is-a-companys-duty-to-its-shareholders/ and photocopier cartridges. Stock control is essential for cash flow and profit.
Techniques for managing stock vary and the one that is best for your business depends on the products you sell and the industry. For example, some companies employ a computer program to monitor stock and track costs. These programs are usually integrated with point-of-sale machines and freight tracking system. They may be more expensive than manual stock records, but can eliminate errors and improve accuracy.
Some companies employ a process known as Just In Time (JIT) that reduces storage and inventory costs by keeping stock to a minimum. This requires accurate forecasting and a reliable supply chain, but it can decrease customer service issues such as out-of-stocks. Certain companies also employ a formula known as Economic Order Quantity to determine the amount of stock they should keep in order to balance the need for security stocks with the expense of ordering and storing extra.
It’s essential to set up procedures to keep accurate records of stock and examining them on a regular basis whether through a regular audit or a full stocktake. It’s also good practice to separate staff handling the administration of the stock control from those who are responsible for accounting and finance to ensure that corruption and fraud are not a problem.
