Stock control makes companies and institutions avoid losses of all kinds that occur inside stores and provides the possibility to review all accounts from anywhere. The world is witnessing a severe financial crisis that affected many international companies and affected the economies of companies that planned their production rates based on forecasts Marketing prepared just before the global crisis. The world is also witnessing a successive race in technological development in many commodities and digital products; for this reason, companies seek to employ advanced methods of stock control that secure their interests, and in this article, we will talk about the 5 basics of stock control & how to improve it.
What is stock control?
It is the process of supervising the stock, determining the minimum and maximum of it, knowing the demand limit from existing goods, and determining it in the stock so that the production movement does not stop suddenly due to the end of the stock.
There are different types of inventory that can be stored. Warehouses are not only required to contain raw materials for manufacturing, but the inventory varies for several types, namely:
- Raw materials for manufacturing, such as industrial companies, occupy the largest proportion in the stock, which may exceed 90%.
- Incomplete goods that are in the manufacturing stage and are left in storage.
- Complete and finished materials, which represent the company’s final product.
- Administrative materials, i.e. materials that the company uses for its own tasks, such as papers, inks and other materials.
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What are the methods of stock control?
There are many methods of stock control, and the following are the most important of them in some detail:
- Just-in-time (JIT)
It is one of the basic methods of stock control and management through which goods are received from suppliers only when needed.
And its purpose is to reduce costs resulting from keeping an inventory and also to increase inventory turnover.
- First In, First Out (FIFO)
It is one of the stock control and management methods through which newly purchased assets are disposed of first.
- Economic Order Quantity (EOQ)
It is a method of stock control and management in which a quantity of inventory is maintained, reducing the total holding and ordering costs.
Choosing the right stock control software
If you are looking for a system for your stock control, you will find many programs and systems available, but you will need to choose the right stock control program or system for you.
And you can do this by choosing a program that has several characteristics, as:
- Ability to deal with different currencies.
- Ability to cover more than one warehouse at the same time.
- Ability to grow and expand with your business.
- The possibility of tracking shipments.
- Support more than one user at the same time.
- Provide useful and accurate business reports regarding inventory.
- Integration with other software.
The inventory ordering process
To get effective stock control, you need to get the stock ordering process right, and to get it, you need the following:
- Use a single stock control system
Many people make mistakes and choose more than one stock control software, and this is not right.
You must check from the beginning that the software you are using is the right one for you and your business.
The purpose is that using a single stock control system will ensure accuracy in results and ease of use, and no confusion or confusion.
- Review your current stock periodically.
You constantly need to determine the level and value of your current stock by following up on sales reports periodically.
- Determine the ideal stock level
After determining the current stock level, you also need to determine the ideal stock level to make decisions about the maximum and minimum stock of each item.
- Review your stock control periodically.
You need to determine whether your stock management is effectively affecting your business or not through several things, as:
- Monitor stock metrics
- Review your buying patterns
- Less frequent stock order
- Check the effect of marketing and promotion
- Have a backup plan if items don’t sell as you want them to
- Review your sales policies
- Store your items more efficiently
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