Stock Company Management
Stock Company Management is a process for managing stocks which are items that need to be monitored and stored. Stocks could include work in progress (partly finished materials and products), finished products, and consumables like photocopier cartridges and stationery. The cost of managing these stocks can be a significant percentage of the capital invested in a business, and effective stock control is vital for cash flow and profitability.
Techniques for managing stock vary, and which one is most suitable for your www.boardtime.blog/what-is-a-board-quorum/ business depends on the products you offer and your industry. For example, some companies utilize a computer software to monitor stock and track costs. These programs often integrate with point of sale machines and freight tracking systems. These programs are more expensive than manual records, however they can reduce errors and increase accuracy.
Other companies employ a method called Just In Time or JIT that reduces costs for inventory and storage by reducing stock to a minimum. This method requires accurate forecasting, reliable supply networks, and can help reduce customer service issues, like out-of stock. Some companies use a formula called Economic Order Quantity (EoQ) to determine how much security stocks to keep. This formula allows for balancing the need to buy and store extra with the cost to order and store it.
It is essential to establish procedures for maintaining accurate records of inventory, and checking them regularly. This can be accomplished through periodic reviews or a complete stocktake. It’s also good practice to separate employees handling administration of the stock control from those who are responsible for accounting and finance, to prevent fraud and corruption.