Stock control, also called inventory control, is necessary to show how much stock you have at any given time and allow you to keep track of it. This is for every product or service offered from materials to finished goods.
In addition, it covers the production process, purchasing, and delivery. When stock control is done efficiently, it allows businesses to make sure they have the right amount of stock at all times. Capital is accessible and production problems are avoided.
Stock is everything used to make a product and run a business: raw materials, work in progress, finished goods, and consumables. Stock can be categorized further into low, medium, and high value categories. If stock levels are limited, then those classifications will help plan for new and replacement stock.
Deciding how much stock to have depends on the nature and size of a business, as well as the type of stock. Stock control systems can b managed manually or using computer software. Successful stock control depends on several factors: time and accurate data, inventory models, accurate forecasting power, objectives, and ability to implement.
Successful stock control also involves balancing inventory costs with its benefits. Small business owners can appreciate the costs of carrying inventory. These include storage costs, insurance, and taxes. It’s important for owners to know the fine line between keeping too much inventory and not having enough.
Recently, two approaches, Materials Requirements Planning (MRP) and Just-In-Time (JIT), have had an impact on stock management. Manufacturers and suppliers find these applications useful. Additional tips for better stock control:
At delivery
Verify count, examine cartons for damage.
If Damaged is Discovered
Retain items, call to report damage and request inspection, and confirm call in writing.
aadmin is a contributor at ERPfm. We are committed to providing well-researched, accurate, and valuable content to our readers.
