What is meant by stock management?
Stock management is the process of managing the goods your business plans to sell. This involves acquiring, storing, organising and tracking those goods. Stock management also involves keeping records of changes in your inventory over time.
What are the functions of stock management?
The role and functions of the stock The main function of inventory management is to determine the sufficient amount and type of input products, products in process and finished products, facilitating production and sales operations and minimizing costs by keeping them at an optimal level.
Why is stock management so important?
Having control over your stock will help you to create a clear process for when stock is returned or damaged and will prevent the wrong stock from being sent out to customers. A stock management system will help the warehouse team to correctly process the products and assign them to the correct locations.
What are the 4 types of inventory?
There are four main types of inventory: raw materials/components, WIP, finished goods and MRO.
What are the 6 types of inventory?
The 6 Main classifications of inventorytransit inventory.buffer inventory.anticipation inventory.decoupling inventory.cycle inventory.MRO goods inventory.
What is good stock management?
Good stock management also helps you calculate exactly how much inventory you need to have on-hand at any time. This helps prevent product shortages and allows you to keep just enough inventory without having a surplus of stock in the warehouse.
What is difference between inventory and stock?
In summary, stock is the supply of finished goods available for sale, and inventory includes both finished goods and components that create a finished product. In other words, all stock is inventory, but not all inventory is stock.
How do you manage stocks?
How to manage stock effectivelySet minimum stock levels. ... First In, First Out (FIFO) ... Having a good relationship with your supplier. ... Have a contingency plan. ... The importance of accurate forecasting. ... Quality control is everything. ... Use a cloud-based stock management software.