Stock Company Management is the method of managing stocks – things that need to be categorized and stored. Stocks could include work in progress (partly completed materials and goods) and finished products and consumables such as stationery and photocopier cartridges. Controlling stock is vital for cash flow and profit.
There are many different methods of managing stock to choose from, and the right one for your company will depend on your specific industry and the kind of product you offer. For instance, certain companies employ a computer-based program to track stock and record costs. These programs are usually coupled with point-of sale machines and freight tracking system. These programs are more expensive than manual records, but they can reduce the chance of mistakes and improve accuracy.
Certain companies employ a technique called Just In Time (JIT) which can reduce storage and inventory costs by keeping inventory to a minimum. This method requires accurate forecasting and an efficient supply network and can minimize problems with customer service, such as out-of stock. Some companies employ a formula known as Economic Order Quantity (EoQ) to determine the amount of security stock to keep. This formula is a way of balancing the need to purchase and store additional stock with the cost to order and store it.
It’s essential to set up procedures to keep https://boardtime.blog/flexible-working-hours-with-the-virtual-data-room accurate records of stock and examining them regularly whether through a regular audit or a full stocktake. To prevent corruption and fraud it is an ideal idea to separate the employees who manage the control of stock from those who handle accounting and finance.
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