Stock management is a basic business function that is responsible for all decisions about all assets and materials in an organization. Effective stock management involves ensuring that policies, activities and procedures are in place to ensure that the correct quantity of each item is kept in stock at all times.
Proven ways to Streamline Your Business with Stock Management App
With employee and consumer theft being the lowest number, reassuringly, other internal factors can be mitigated with certain measures. A competent inventory app can assist you in managing your goods and help you save a lot of money. Instead of using Excel, you can begin by using simple inventory management software to sell directly to customers through a more sophisticated end-to-end fulfilment process. We go over a few tried and true techniques to use the stock management tool to make stock management easier.
- Maintain Safe Stock Levels
Make precise sales estimates using statistical methods, and then use the results to forecast supply levels for each item in your inventory. In addition to projecting sales, maintaining a minimum stock level for each item and supplier is critical. Maintain an acceptable minimum stock level if you know a certain supplier has extended lead times for shipping their products to you.
You can keep track of this information for each item and vendor with a basic stock management or enterprise resource planning (ERP) system.
- Use Data For Making Decisions
Powerful systems now exist to analyse inventory and sales transaction data in real-time. Instead of using multiple Excel spreadsheets, systems like these that run on a unified platform can capture and compare sales forecasts, stock levels, and purchasing costs to provide the ideal model for stock capture, lot size, and purchasing requirements.
A stock management system that unifies customer, inventory, e-commerce, and manufacturing data into a single database can accelerate order acquisition, assignment, and fulfilment, as well as profits higher.
Don’t treat all the products in your inventory the same. Items in stock will have different demand from your customers as well as different costs and valuation methods. A complete ERP system will allow you to track the prices, stock levels and delivery times of each SKU. When an inventory level falls below a certain threshold, the system should alert you and generate purchase orders that may be submitted to suppliers.
Not every service provider is the same. Warehouse managers will know which suppliers are more dependable than others, which things are more likely to arrive in good shape, and how to manage predicted and actual receipt dates. Your system must also be able to keep track of this data.
The result will be useful for informing everyone rather than relying solely on the knowledge of one or two people in your organization.
- Keeping Details in Inventory Records
Knowing inventory and sales operations means keeping track of reference numbers and lot numbers. Keep track of component SKUs, lot numbers, and stock levels if you conduct light manufacturing and manage assembled items or kits in case you need to purchase or return assembly parts or individual kits. This is why ditching Excel spreadsheets in favour of an ERP that maintains track of stock management and production is so beneficial.
- Communication is the key
Unsurprisingly, lack of communication between different departments and sections of a business can lead to inefficiency and higher operating costs.
The advantage of an ERP system running on a unified platform is that reporting can be done between companies. Sales forecasts can directly affect the purchasing and operations budget. When purchasing managers send purchase orders to suppliers, the sales team can then view forecast inventory levels directly on their sales orders and manage customer expectations on-site in real time. If your inventory management system isn’t working, keep these tips in mind and evaluate your business and operations.