Stock Company Management

Stock Company Management is the management of stocks – items that must be stored and tracked. They could comprise work in progress (partly finished materials and goods) or products that are finished, as well as consumables such as printer toner and stationery. Controlling stocks is vital to cash flow and profitability.

There are a myriad of stock management techniques to choose from, and the right one for your company will depend on your specific sector and the type of product you sell. For instance, certain companies utilize a computer software to monitor stock and track costs. These programs are often integrated with point of sale machines as well as freight tracking systems. These programs are more expensive than manual records, however they can help eliminate mistakes and improve accuracy.

Other companies use a technique 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 and an efficient supply network, and can help reduce problems with customer service, such as out of stock. Some companies also utilize a formula called Economic Order Quantity to determine the amount of stock they should keep and balances the need for safety stock with the cost of storing and ordering additional.

It is important to establish procedures for maintaining accurate records of stock, and regularly reviewing them. This can be accomplished through periodic reviews or a complete stocktake. It’s also good practice to separate staff handling the administration of stock control from those working on accounting and finance, in order to ensure www.boardtime.blog/nasdaq-board-portal-advantages/ that corruption and fraud are not a problem.