Use our guidelines for managing company records to see what has to be done.

Stock management

Good inventory management may reduce the impact of issues in the supply chain and save money from being locked up in excess inventory.

1. Overview

Inventory control, also referred to as stock control, is a way to demonstrate how much stock you have on hand at any one moment and how you manage it.

It covers everything you utilize, from raw materials to completed items, in the process of producing a good or service. It covers stock at every point in the manufacturing process, from ordering and receiving it to utilizing it and placing new orders.

Effective stock management guarantees that funds are not overextended and safeguards output if supply chain issues occur.

This tutorial covers several stock control techniques, walks you through setting one up, and provides resources for more knowledge.

2. How much equity needs to be retained?

The kind of stock involved, as well as the size and structure of your company, will determine how much stock you should retain. You may be able to purchase products in bulk and then pay your supplier a charge to store them if you don't have enough room.

Having little or no inventory

A few benefits are associated with having little to no inventory and getting it supplied as needed: 

• cost savings on storage; 

• ability to stay current and create new goods without losing inventory; and 

• efficiency and flexibility—you only have what you need when you need it.

The following are some drawbacks: 

negative aspects: 

• Fulfilling inventory requirements may become costly and complex. 

• It should there be a systemic issue, you may run out of stock. 

• You are dependent on the effectiveness of your suppliers

This might work well for your company if you operate in a fast-paced setting where goods change out quickly, stock has to be purchased and stored at a high cost, or stock needs to be refilled quickly and easily.

Having a large inventory

Having a lot of stock has the following benefits: it's simple to handle, it costs little to maintain, it never runs out, and purchasing in bulk could be less expensive.

The following are some drawbacks: 

• More expensive storage and insurance

• Some products could expire; 

• Stock might run out before it's needed; 

• Your money is locked up

This might work well for your company if you can keep a lot of inventory at a low cost, your sales are unpredictable (making it difficult to determine how much stock you need and when), and the parts and materials you purchase are not expected to undergo quick advancements or need a lengthy lead time.

3. Systems for stock control

Making an inventory, or list, of the stock and documenting its location and worth is known as stocktaking. This yearly exercise, which is essentially an audit to determine the stock value, is common.

Although codes—including bar codes—may greatly simplify the procedure, it can still take a lot of time. A rolling stock take, which involves checking inventory more often, reduces the need for a large yearly exercise but requires ongoing care all year long. Using handheld readers to tag items could be a quick and easy method to continuously monitor inventories.

Any stock control system has to allow you to order products, monitor stock levels, and issue stock orders.

The stock book, which works well for small enterprises with few stock items, is the most basic manual approach. It allows you to maintain a record of the stock that is issued and received.

It is compatible with the basic reordering system. For instance, two stock item containers are used in the two-bin system. When one runs dry, it's time to fill the empty bin with additional merchandise and begin utilizing the second one.

Software for computers

Although computerized stock control systems are more versatile and have quicker access to information, they operate on similar principles to manual ones. Getting a stock value or learning how well a certain stock item is selling may be done fast.

For companies handling a wide variety of stock kinds, an automated system is a suitable choice.

The quality of the system depends on the data entered into it. Before it goes "live," do a comprehensive stock take to guarantee precise numbers. Running the old system concurrently with the new one for a time is a good idea since it provides a backup and lets you inspect and troubleshoot the new system.

Select a framework.

Numerous software systems are accessible. Consult other companies in your industry about the software they use, or seek guidance from your trade group.

Could you please create a list of the items you need? Your requirements might be, for instance:

• various item prices; 

• prices expressed in various currencies

• using several warehouses; 

• updating automatically; 

• choosing groupings of goods to update; 

• updating individual products; and 

• being flexible enough to change with your requirements.

• batch tracking and quality control; 

• package integration; 

• simultaneous usage by different users

4. Manage the caliber of your inventory

A crucial component of stock control is quality control, as it may impact the final product's quality or the safety of consumers.

Batch and stock monitoring should be a part of effective stock control. This technique entails being able to identify the other products in the batch and track a specific item both forward and backward from the source to the completed product.

Products have to undergo a methodical quality check to detect defects and separate the impacted batch. This process will enable you to bring up any issues with your supplier and provide proof of the product's quality and safety.

This kind of monitoring is rather simple with an effective computerized stock management system. Codes may also be used in manual stock management procedures to help organize tracking and facilitate the traceability of specific batches.

Recording information on the manufacture date of a product or component may help ensure it is sold or processed on time. Additionally, the technology may be effectively and swiftly utilized to track out defective items.

A program run by a standards-compliance mark for industrial products in India since 1950. The mark certifies that a product conforms to an Indian standard (IS) developed by the Bureau of Indian Standards (BIS), the national standards body of India. certifies companies that meet a set of quality management requirements. One method to demonstrate to authorities and consumers that you take quality control seriously is to meet the standard.

See our guide on storing materials and commodities for further details on handling items.