how to do stock control

Tips for Effective Stock Control and Inventory Management.

• 1. Check All Incoming Stocks. Your first focus should be checking on whether the delivered stock is exactly what you ordered from your supplier.
• 2. Store Stocks Wisely.
• 3. Create Clear Labels.
• 4. Track Expiry Dates.
• 5. Avoid Compounding Problems.

Full Answer

What are the methods of stock control?

Stock control and inventory

• Types of stocks
• How much stock should you keep?
• Stock control methods
• Stock control systems - keeping track manually
• Stock control systems - keeping track using computer software
• Using RFID for inventory control, stock security and quality management
• Stock security
• Control the quality of your stock
• Stock control administration

What are stock control procedures?

monitoring stock levels and dealing with changes in supply and demand, as well as methods of controlling stock movements and reducing the likelihood of theft. Working through this unit There are two sections in the unit Stock control procedures: 1. Monitoring stock levels 2. Controlling stock movements

What are the disadvantages of a stock control system?

Disadvantages Perpetual Inventory System. Besides the above of perpetual inventory system, it suffers from the following limitations: (i) The system is expensive and a small concern cannot afford to implement this system. (ii) The information about actual stock of a particular item on a particular day may not be available, only figures above ...

What does control stock mean?

control stock (noun) shares owned by shareholders who have a controlling interest How to pronounce control stock?

What are the methods of stock control?

Different methods for stock control managementStock reviews. ... Fixed-time/fixed-level reordering. ... Just in time (JIT) ... Economic Order Quantity (EOQ) ... First in, first out. ... Batch control. ... Vendor-managed inventory (VMI) ... Define processes and stock types.More items...

What are 4 stock control methods?

What are the methods of stock control?Just-in-time (JIT)FIFO.Economic Order Quantity.Vendor-managed inventory.Batch control.

How do you implement stock control?

Inventory control best practicesCreate an organized floor plan. It's essential that the warehouse is arranged in an order that makes sense. ... Use clear labels and signage. Relevant labeling provides quicker and more efficient fulfillment. ... Implement cycle counting. ... Use warehouse management systems.

How does a stock control system work?

Overview. Stock control, otherwise known as inventory control, is used to show how much stock you have at any one time and how you keep track of it. It applies to every item you use to produce a product or service, from raw materials to finished goods.

What is the golden rule of stock control?

What is the golden rule of stock control? In short, stock control can be the difference between making a profit or a loss. If you get it just right, it can help make your business run smoother, keep costs down and, most importantly, increase your profitability and growth.

What is stock control chart?

Stock-control charts are used to reduce liquidity problems. These include details on stock levels, usage rates, order quantities and delivery times, such as: Minimum stock holding. The minimum level of stocks held by a firm is called the buffer stock level.

What are the 4 reasons why we need to do stock control?

Here are six reasons why stock control is important for your eCommerce success.Reduce your storage costs. ... Improve your sales forecasts. ... Handle returned orders effectively. ... Improve your fulfilment accuracy. ... Prevent theft and fraud. ... Better satisfy your customers.

Why do we need stock control?

The purpose of stock control is to reduce the costs of holding stock while ensuring you can meet customer demand and making sure that there's enough material for production. Businesses should always have a 'safe' amount of stock so that they're able to react and cover any unforeseen issues.

What are the 2 methods of inventory control?

In general, there are two methods of inventory control: manual and perpetual.

What are the 3 types of inventory?

Manufacturers deal with three types of inventory. They are raw materials (which are waiting to be worked on), work-in-progress (which are being worked on), and finished goods (which are ready for shipping).

What are the methods of stock control?

To optimize stock control, there are several methods to choose from, including the following: economic order quantity (EOQ), vendor-managed invento...

Why is stock control important?

Stock control is a key part of inventory management that helps to maximize and regulate stock levels to meet customer demand while keeping warehous...

What are stock control systems?

Stock control systems are designed to help ecommerce businesses automatically track stock levels in real time, especially across multiple warehouse...

What is the golden rule of stock control?

Ecommerce businesses should always strive to keep maximum inventory of the best-sellers and reduce the volume of slow-selling stock. Historical ord...

How to control stock?

To better control stock, you need to pay close attention to stock trends over time. Having a better sense of which items are slow-moving versus fast-moving and replaced in a specific time period can help you make better decisions on when to restock.

What is stock control?

Stock control, also known as inventory control, is the process of optimizing stock levels in a warehouse (s) to stabilize inventory storage costs while maintaining enough stock to meet customer demand. If done right, proper stock control can optimize logistics costs while ensuring you have just enough stock stored at all times.

Why is historical order data important in ecommerce?

Historical order data helps with forecasting demand, which can also help to provide insights into which items you need to reorder at the SKU level in given time period.

Why is it important to store inventory across locations?

You can easily visualize where your customers are, and compare your current and ideal distribution to optimize product allocation: Another benefit of storing inventory across locations is that it allows you to have backup stock in case of emergency ( e.g., unexpected warehouse closure due to bad weather).

What is JIT inventory?

Just-in-time (JIT) The JIT inventory method refers to ordering as much stock required to meet customer demand, but it also requires the ability to order quickly soon after to meet the next batch of orders.

What is inventory turnover ratio?

The inventory turnover ratio is a great tool to help you determine the best time to order new stock and at what quantity per SKU. The inventory turnover ratio formula is simple:

How does stock control help logistics?

If done right, proper stock control can optimize logistics costs while ensuring you have just enough stock stored at all times. In order to control stock, you will need access to tools and data to make better predictions on supply and demand.

How to do a stock take?

A stock take helps you: 1 keep track of inventory 2 see if your ordering process is efficient 3 reduce over-stocking, or stockouts (when you run out of goods to sell) 4 uncover problems – for example, issues with your supplier, or theft

What to do when your stock count is finished?

Once your count is finished, you need to validate your stock take. Compare the results of the count to the stock records you printed out earlier. Any inconsistencies should be noted and accounted for – for example, you need a procedure in place for dealing with damaged items.

Why do you need to take stock?

A stock take helps with your stock control. For example, if you sell food, you’ll need to know when items are due to reach their sell by date so you can refresh the shelves when necessary.

What is stock sheet?

Your stock sheets form the basis of your stock take. You use them to record your new count, against what should be there. The stock sheets should use the most up to date records you have.

What is continuous stock taking?

continuously – this is where you plan for continuous stock taking depending on the types of items you have in stock, for example you might check some items monthly, others weekly, and some daily – and then update your stock taking records continuously

How to reduce distractions in a workplace?

Remember to appoint more staff to larger categories. You should also minimise any distractions – ask employees to switch their phones off and avoid using the radio, for example.

Is stock taking time consuming?

There’s no getting around the fact that a stock take is time consuming and laborious. You need to dedicate time to the process, which should help you limit distractions and errors.

What are some good stock control tips?

These include wisely and accurately labeling items, their statuses, monitoring stock levels, and setting thresholds with the help of digital tools.

How to keep track of inventory levels?

And, the best way to keep track of inventory levels in relation to procurement and sales in real-time is to adopt an inventory software with sales and order integrations. In this way, it will automatically keep you in the know, and you don’t have to enter everything manually.

What is ABC analysis?

ABC analysis is used to prioritize which products are given more attention in inventory control using (1) value and (2) cardinality or the numbers of such products to estimate importance.

What is inventory management software?

With inventory management software, users can update the number of stocks in real-time and across multiple facilities. If integrated with a sales platform, the items ordered are automatically deducted from the stock count while sourced goods are conveniently updated, making it easy to manage inventories remotely.

What is Pareto principle?

The Pareto principle is just a rule of thumb or a generalization. Often, in more particular settings, it simply isn’t spot on. So, if you can segmentize the ebb and flow of products in more detail than the general 80/20 rule of thumb, then the better off you are. This is why many inventory management professionals opt for a much more detailed (yet also general) framework: The ABC Analysis.

What does the number of things in inventory tell you?

So, in fact, the number of things in your inventory tells you something about the health of your business. Again, inventory management is intertwined with other aspects. It is a key piece of the puzzle. The physical number of stocks changes whenever you ship items or receive orders.

How to keep up with the demand?

To keep up with the demand, many businesses have actually considered either increasing their inventory levels or keeping their standard number of stocks despite the perceived decline of visitors to their brick-and-mortar stores. However, to properly keep tabs on these stocks across stores and platforms, online retailers must be smart and leverage digital inventory management solutions. The same goes for applications with QR code readers that migrate information into digital databases. This is also relevant for retailers who have closed stores since they will likely continue or shift their operations online. And without the proper solutions and know-how, they could get left behind.

What is stock control?

Stock control is the practice of balancing the need to maintain inventory levels against its cost. The ideal outcome of stock control is a minimal investment in inventory, while still being able to fulfill customer orders in a timely manner. Counterbalancing these two goals can be something of an art form. More specifically, stock control can involve the following activities:

Why do companies need to locate suppliers near their production facility?

Locating suppliers near the company's production facility, so that delivery lead times can be reduced . Doing so reduces the need to maintain expensive safety stocks in-house.

How does inventory reduction affect marketing?

Reducing the number of products offered. This reduces the total amount of inventory investment, but gains the ire of the marketing staff, which wants to offer the broadest possible range of products to customers.

Why do companies set up warehouses?

Setting up warehouses near large customer concentrations, so that goods can be more rapidly shipped to them. This approach is targeted at greater customer service, but can require an increased inventory investment.

What is the purpose of ordering raw materials?

Ordering the minimum amount of raw materials needed for specific production runs and reordering more frequently, in order to reduce the investment in raw materials. Creating cells in the production area, which are responsible for creating goods or sub-assemblies from start to finish.

Is there a perfect state in stock control?

There is no perfect state that can be attained in the stock control area. Instead, the planning staff is always balancing the demands of different parts of the business to attain a reasonably optimal solution - which may change the next day.

Why is it important to control stock?

Controlling stock is essential to a business’ success. Overstocking can result in insufficient liquidity whilst understocking can make it impossible to satisfy your customers’ demands. Stock is how your business makes money and stays afloat, so to ignore keeping it under control can mean serious consequences.

Where did stock control originate?

This stock control system originated in Japan . As the name suggests, stock is ordered as and when it is required to keep costs down and liquidity high. However, the increased cashflow comes at a cost. The company must be exceptionally organised in order to ensure orders are made at the right time, and suppliers must be reliable to fulfil requirements. There is also a risk of running out of stock should a big order be placed.

What is EOQ in stock management?

EOQ is a complex mathematical formula that aims to keep stock at an optimal level, depending on the type of firm and the industry it operates within. EOQ calculations can be time consuming, so you may find it easier to consult a professional or invest in stock management software which should be able to make out-of-the-box EOQ calculators. EOQ can be combined with other forms of stock management where required.

What is vendor managed inventory?

Vendor-managed inventory (VMI) Vendor-managed inventory (VMI) is a relatively new model of stock management that emphasises shared risk between the buyer and supplier.

What is inventory management software?

Inventory management software gives you control over all aspects of stock and supplies, integrating related processes into a centrally accessible software package. As your business functions, the software can advise you of necessary action, such as ordering new products once your stock hits a certain level. This can help you make data-informed decisions to help avoid overstocking.

What is a perishable stock system?

This system is popular with businesses that work with perishable stock. It aims to ensure that stock does not deteriorate before use. Stock is identified by when it was received and moves onto the next stage of production before stock received at a later date.

Why do businesses do stock reviews?

Your business will take regular stock reviews to establish whether new stock must be ordered. This considers pre-determined figures that help business leaders make the decision to order new stock or hold off. Many businesses operate a minimum stock level – the lowest point stock can go before more is ordered.

What is stock control record?

This record will allow you to enter an individual stock item on each sheet and keep a record of items issued and received. It also includes information on minimum and maximum levels, lead time, reorder quantity, where the item is located and supplier details.

Can you check on stock without leaving your desk?

or removed, enter the transaction on the record. If you keep your stock records up-to-date, you will be able to check on all your stock without having to leave your desk. You will also be able to reorder stock with the information on the record.

How to improve inventory control?

1. Understand the goals of any inventory control system. An inventory control system should accomplish three key goals . Knowing these goals are helpful in letting you know if your current system is effective, if it can be improved, as well as how it can be improved.

What is the first step in inventory control?

The first step to inventory control is being deeply aware of how much inventory you have on hand at any given time, what type of inventory you have available, where the inventory is located, and how it changes over time. Today, there are plenty of software applications that can assist in this process.

What is an inventory control system?

Exactly! An inventory control system should accomplish 3 key goals: it should let you know what is in your inventory at all times, it should detect and update changes in your inventory, and it should let you know how much inventory to order and when to reorder.

How to keep track of inventory?

Manually update your inventory. Inventory management software can be a helpful way to keep track of your inventory since it automatically updates your inventory records as new sales and purchases are inputted into the software. It is important, however, to have a system of manually monitoring your inventory so you have a way to cross-check the accuracy of the software (or if you opt not to use any type of software).

What is a barcode tracking system?

If you have extensive amounts of inventory, look into a barcode tracking system. This will allow you to place a barcode on each item, which allows staff to quickly scan, identify, and transfer inventory information into whatever software you are using. This is an alternative to manual labels.

Why do you need a separate financial system?

You need a separate financial system to analyze your revenue and expenditures. Your inventory system should keep an accurate count of your products so that you know when and how much to order. Click on another answer to find the right one... To notify you when you need to reorder products.

How to store weekly checks?

Store the updated documents in an organized manner. Make sure to store your weekly checks (or whatever time period you chose) in neat folders or binders that are organized according to month. This way, if you need inventory data for a particular week, you can readily find it. It is also helpful in case your accountant needs any information.

When can you optimize stock levels?

You can only optimize stock levels when you have informed inventory purchasing practices.

What is inventory control?

Inventory control is the process of managing and regulating the supply, storage and distribution of stock. Inventory control is a key function of supply chain management that maintains appropriate quantities of stock to meet customer demand.

Why is it important to invest money in inventory?

Therefore it’s important to invest money in products that will sell so you can optimize inventory turnover and warehouse space.

Why use inventory optimization software?

More and more businesses are therefore turning to inventory optimization software to automate their processes and improve efficiency. Inventory optimization tools use advanced algorithms that are simply not available elsewhere to bring accuracy and speed to inventory management calculations.

What is ABC analysis?

ABC analysis is a good inventory control technique to segment your warehouse stock based on the value it brings to the company. Every item in your warehouse has a different value in terms of how much money it makes the business.

What is stock optimization?

The objective of stock optimization is to have the right products in the right place at the right time – as efficiently and cost-effectively as possible. Stock optimization (also known as inventory optimization) plays a key role in ensuring inventory control techniques can be carried out effectively. It’s the art of achieving stock availability, while reducing inventory costs and minimizing the risk of excess items. This is done by forecasting demand and managing supply variables while dynamically adjusting stock rules and inventory parameters.

What is safety stock?

Safety stock, also called buffer stock, is the layer of inventory kept to prevent stockouts and back orders in situations where the forecast is exceeded or supply is delayed. Safety stock minimizes disruptions caused by demand, supply chain or fulfillment disruptions – while investing the lowest possible amount of capital in inventory.