There are many software systems available to help you manage inventory, subject to the monthly budget you can afford when subscribing to the software. Others use software systems integrated with their accounting package such as Xero or MYOB. Some small businesses simply use a spreadsheet to manage their inventory. Whether manual or computer-based, the stock control system you use will depend on the size of your business and the type of stock or inventory that you have. It is also a good idea to implement an ongoing system for tracking items you have bought and used or sold. detect theft and gaps in your stock levels.understand your stock levels to ensure you don't have too much or too little on hand. ![]() Keeping track of your stock makes good financial and practical sense. ship it directly to your customers on your behalf to save freight costs and time delaysīefore you commit to working with particular suppliers, consider conducting online research or asking them how they source their supplies - do they source supplies from overseas?īy understanding how their business operates, and their logistics for receiving, you can recognise how delays may impact on supply to your business.įind out more about reducing your stock control costs by finding the right suppliers.hold your stock after you've purchased it at little or no additional cost to you.Whether you're sourcing raw materials for manufacturing, buying stock from wholesalers or looking for the best internet service provider for your online business, finding suppliers who are reliable and meet your particular needs is essential. lead advantage in the marketplace with positive review ratings and reputation.increased customer confidence and satisfaction.Having the right stock readily available to sell can lead to: the wrong stock means lost income in the form of lost sales, write-offs and poor customer service.too little stock means lost income in the form of lost sales, while also undermining customer confidence in your ability to supply the products at time of purchase.too much stock means extra expense which can create a shortfall in your cash flow, incur excess storage costs and potentially lead to spoilage costs.This is particularly important with food items. Most customers prefer to receive products at the time they purchase them (or as close as possible to it) rather than waiting for delivery.īe mindful not to hold too much perishable stock to prevent having to write it off as spoilage if it doesn't sell within the expiration date. The benefit of stock on hand is meeting the immediate demands of your customers who are ready to purchase. To manage stock successfully, find a balance between the benefits of holding stock against associated costs.Ĭosts include the money spent buying the stock, the labour costs involved in this process, the storage of stock, and insurance. Balancing the benefits of holding stock against the costs Remember to include labour costs for each of the above.įor example, include the cost for the time it takes you or your staff to order stock, your warehouse and logistics staff to store the stock, and then pick and pack the stock when sold. spoilage costs - how much stock is wasted or disposed of. ![]()
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