Stock Company Management

Stock Company Management is a process to manage stocks, which are things that need to be recorded and stored. They could comprise work in progress (partly finished materials and goods) or finished products and consumables such as photocopier and stationery. The cost of managing these stocks could eat up a large percentage of the capital that is invested in a company, so effective stock control is vital to ensure cash flow and profitability.

There are a variety of ways to manage stock, and the best one for your business will depend on your specific industry and the type of product that you sell. For instance, some companies utilize a computer software to keep track www.boardtime.blog/flexible-working-hours-with-the-virtual-data-room/ of inventory and record costs. These programs typically integrate with point of sale machines as well as freight tracking systems. They may be more expensive than manual stock records, but they can reduce mistakes and improve accuracy.

Other companies employ a method known as Just In Time or JIT which reduces inventory and storage costs by reducing inventory to the minimum. This method requires accurate forecasting, an efficient supply network, and can help reduce problems with customer service, such as out-of-stock. Some companies employ a formula known as Economic Order Quantity (EoQ) to determine how much safety stocks to keep. This formula balances the need to order and store extra with the cost to order and keep it.

It is vital to establish procedures for keeping accurate stock records and ensuring they are checked regularly. This can be accomplished through a periodic review or a complete inventory. To prevent corruption and fraud, it’s recommended to separate the staff who manage the control of stock from those who handle accounting and finance.