Stock Company Management
Stock Company Management is the process of managing stocks, i.e. items that must be categorized and stored. They can comprise work in progress (partly completed materials and goods) or finished products along with consumables, such as stationery and photocopier toner. The cost of managing these stocks could take up a large portion of the capital invested in a company, so efficient stock control is essential for profitability https://boardtime.blo and cashflow.
There are a variety of ways to manage stock, and the best one for your company will depend on your particular industry and the type of product that you sell. For instance, certain companies utilize a computer software to keep track of inventory and record costs. These programs typically integrate with point of sale equipment and freight tracking systems. They can be more expensive than manual stock records, however, they can eliminate mistakes and improve accuracy.
Certain companies employ a method called Just In Time (JIT) that reduces inventory and storage costs by reducing the amount of stock available to a minimal. This method requires accurate forecasting, a reliable supply network, and can also reduce customer service issues such as out of stock. Certain companies employ a formula known as Economic Order Quantity (EoQ) to determine the amount of safety stock they can keep. This formula is a way of balancing the need to purchase and store extra stock, as well as the cost of ordering and keep it.
It is crucial to establish procedures for keeping accurate stock records, and then checking them regularly. This can be done through a periodic review or a full stocktake. To prevent fraud and corruption It’s best to separate the staff who manage stock control from those who do finance and accounting.