Stock Company Management is the process of managing stocks, i.e. items that require to be logged and stored. They could include work in progress (partly finished materials and goods) or finished goods, and consumables such as photocopier toner and stationery. The cost of managing these stocks can eat up a large percentage of the capital invested in a company, so effective stock control is vital for profitability and cashflow.

There are a variety of stock management techniques, and the best one for your business will depend on your specific business and the type of product you sell. For instance, certain companies employ a computer-based program to track stock and read the article record costs. These programs are typically connected to point-of-sale machines as well as a freight tracking systems. These programs are more expensive than manual records, but they can help eliminate errors and improve accuracy.

Other companies use a technique known as Just In Time or JIT which can reduce inventory and storage costs by reducing inventory to a minimum. This method requires accurate forecasting, an efficient supply network, and can help reduce customer service issues like out of stock. Certain companies also employ an equation called Economic Order Quantity to determine the amount of stock to keep that balances the need for safety stocks with the expense of ordering and storing additional.

It is essential to establish procedures for keeping accurate records of stock, and ensuring they are checked regularly. This can be accomplished through a periodic review or a complete inventory. To avoid corruption and fraud it’s best to separate the employees who manage stock control from those who do accounting and finance.