Stock Company Management

Stock Company Management is the method of managing stocks – things that need to be stored and tracked. They could include work in progress (partly finished goods and materials) or finished products along with consumables, such as printer toner and stationery. Controlling stock is vital for cash flow and profitability.

Techniques for managing stock vary and the one that is right for your business depends on the kind of products you offer and your industry. For example, some companies employ a computer-based program to track stock and record costs. These programs usually integrate with point of sale machines as well as freight tracking systems. They can be more expensive than manual stock records however they can reduce errors and improve accuracy.

Other companies employ a method known as Just In Time or JIT, which reduces the cost of storage and inventory by reducing stock to a minimum. This method requires accurate forecasting, an efficient supply network, and can help reduce customer service issues such as out-of-stock. Certain companies employ a formula called Economic Order Quantity (EoQ) to determine the amount of safety stock they can keep. This formula weighs the need to order and store extra with the cost to order and keep it.

It is crucial to establish procedures to ensure accurate stock records and checking them on a regular basis whether through a regular audit or a full stocktake. To prevent corruption and fraud it’s an ideal idea to separate the employees who handle stock control from those who handle finance and accounting.

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