Having effective order and stock control management system is a crucial factor in achieving effective financial performance. It is vital for companies to have well-managed and controlled stock. Your key focus in this area should be to maintain an optimum level of stock at all times.
The essentials of stock management are controlling and planning. In general terms there are three important factors:
Monitoring and controlling your stock should be a core activity in your business. This gives you the stock levels visibility and allows you make better decisions you reduce costs by not missing merchandise and you are able to therefore offer your customers a better service. Having optimal stock frees up your cash flow.
A stock control system is the mechanism through which a company manages the efficient movement and storage of its goods, flow of information and resources that arise from this. By having a stock control system to manage your stock you will meet two important decision factors: the classification of inventory and reliability records, which mean that is important to know how much you have in your stock as ability to identify each of the products you handle in your company.
To fully understand stock control you should consider three key components:
Is the maximum amount of a particular item that you want to keep in your stock. Whilst it is in stock it is a cost to your business. Some companies consider it desirable to have a large stock where holding:
This is the minimum amount of certain items you want to keep in stock. Where demand peaks unexpectedly you may create a problem of supply and loss of revenue for the company because of unmet demand.
This is the stock level at which you place the order to restock your stock level.
Management and stock control is a process that has a great impact on all operational areas of your business and is a key aspect of administration.
When competition is very strong, companies should always ensure of having a balance between supply and demand.
Having a stock management system brings many advantages to your company to provide important and timely information in real time to help better planning and to take appropriate decisions.
Some of the benefits you will get by having a stock control system in your company are:
In order to get these benefits for your business is important to count on a tool that will provide support to manage your inventory more efficiently.
Fully integrated with the SAGE 50 Accounts @Spire provides full integration with your SAGE customers, products and invoice history. By providing a wide range of processing and analytical functionality, @Spire allows you to leverage your accounting data into a system focused on growth and profitability.
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