5 Tips to Successful Stock Control
If your business needs a stock control revamp, or you’re considering implementing a new stock control system, read on for our top tips to successful stock control.
Decide on your minimum stock level
The first step to managing your stock control is deciding on your levels of maximum and minimum stock. Based on a number of factors including storage and purchasing history, you can decide on the minimum re-order levels for your stock. This means that you don’t waste money on unnecessary storage costs, and can streamline your ordering process accordingly.
Choose a perpetual system for accuracy
Although it is business dependent, a perpetual system is recommended for both ease and accuracy. This system means that stock levels are constantly updates as additions and subtractions occur from the items sold or brought into stock. The perpetual system uses real-time data and inherent accuracy to form a reliable decision regarding both stock control and ordering, but relies on item transactions being accurately recorded.
#3 Understand your product turnover ratio
It’s crucial to consider your items as individuals, as each product type usually inherits differences in storage conditions and shelf-life. Once you have established this, you can optimise your storage for how quickly that stock needs to be turned over in a certain time period, otherwise known as turnover ratio. As a general rule, the higher the turnover ration, the shorter the shelf-life and therefore the higher the revenue as a result of sales volume. Your turnover may be influenced by seasonal demand so it’s important to have an in-depth understanding of your product and its characteristics. This is helped by inventory management software.
#4 Research purchasing patterns
Sales are not only thing that will influence your stock control inventory. You must take into account purchasing patterns of behaviour in order to get the stock quantities and flow right. Look into patterns from sales history to determine a safe minimum of inventory stock to purchase and store, rather than over ordering with a disregard for your customer’s habits and your own turnover ratio.
#5 Organising your warehouse
An organised warehouse is an essential part of streamlined stock control. You should try to store products with a lower turnover ratio at the back of the warehouse, and those with a higher turnover at the front, where they are easily accessible. By making sure your warehouse space is organised in terms of product turnover, and therefore shelf-life, you can ensure that picking and packing products is timely and efficient.
By following our tips on stock control management, you can make the running of your business much more seamless, whether you’re front of hour or behind the scenes. If you would like to talk to one of our experts about our Stock Control Management Software, call us today on 0115 984 4988.