Stock Company Management

Stock Company Management is the process of managing stocks – items that require to be tracked and stored. Stocks can comprise work in progress (partly completed materials and items), finished products, and consumables like photocopier cartridges and stationery. The cost of managing these stocks next page could take up a large portion of the capital investment in a business, so an effective control of stock is crucial for cash flow and profitability.

There are a variety of methods of managing stock to choose from, and the right one for your business will depend on your particular industry and the kind of product that you sell. Certain companies, for example utilize computer software to track inventory and record costs. These programs are often integrated with point-of-sale machines and freight tracking system. They can be more expensive than manual stock records but can eliminate errors and improve accuracy.

Certain companies employ a method known as Just In Time (JIT) that reduces storage and inventory costs by reducing the amount of stock available to a minimal. This requires accurate forecasting and a solid supply chain, however it can alleviate customer service issues such as out-of-stocks. Some companies also utilize a formula known as Economic Order Quantity to determine how much stock to store in order to balance the need for security stocks with the expense of storing and ordering additional.

It’s essential to set up procedures for keeping accurate records of stock and examining them on a regular basis, either through a periodic audit or a full stocktake. To prevent fraud and corruption, it’s best to separate the employees who handle stock control from those who handle finance and accounting.