Stock Company Management is the process of managing stocks – things that need to be stored and tracked. Stocks could include work in progress (partly completed materials and goods) and finished products and consumables like stationery and photocopier cartridges. Stock control is essential for cash flow and profitability.

Techniques for managing stock vary, and which one is best for your business is dependent on the type of products you sell and your industry. For instance, certain companies employ a computer program to track inventory and record costs. These programs often integrate with point of sale machines as well as freight tracking systems. They can be more expensive than manual stock records but they can reduce mistakes and improve accuracy.

Some companies use a technique known as Just In Time (JIT) that helps reduce inventory and storage costs by reducing the amount of stock available to a minimal. This method requires accurate forecasting, reliable supply networks, and can also reduce problems with customer service, such as out-of stock. Some companies also employ a formula called Economic Order Quantity to determine the amount of stock they should keep in order to balance the need for security stock with the cost of ordering and storing additional.

It’s essential to set up procedures for keeping accurate records of stock and examining them regularly by conducting a regular audit or a complete stocktake. To stop corruption and fraud it is recommended to separate the staff who handle stock control from those who handle accounting and finance.

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