What is stock management?
Stock management refers to the process of ordering, storing, tracking, and controlling inventory within a business. It ensures that the right amount of stock is available at the right time.
Why is stock management important?
Effective stock management prevents stock shortages and excess inventory. It supports sales, reduces storage costs, and improves cash flow by avoiding unnecessary stock holding.
What activities are involved in stock management?
Activities include inventory tracking, demand forecasting, stock replenishment, and warehouse organisation. Businesses also monitor stock turnover rates to optimise efficiency.
What are the risks of poor stock management?
Poor management leads to stockouts, lost sales, overstocking, increased storage costs, and potential waste of perishable goods.
What tools are used for stock management?
Businesses use inventory management systems, barcode scanning, and ERP software to track and manage stock efficiently.