What is stock management & how does it work?

Stock management (AKA inventory management or stock control) involves ordering, storing, tracking and monitoring stock levels. It applies to every item that your business uses to produce its products from raw materials to finished goods. The aim of is to have the right amount of stock for sale at all times.

Why is stock management important?

Effective stock management aims to optimize inventory levels to balance overstocking – which ties up working capital and incurs unnecessary storage costs and understocking – which leads to stock-outs and missed sales opportunities. Stock management can significantly impact your business’s success and bottom line, no matter what industry you’re in.

Why do manufacturers need a stock management system?

Optimized stock levels can help manufacturers enhance cash flow, minimize production downtime, and improve productivity. Accurate stock management and inventory data enable manufacturers to identify demand trends and plan for future production requirements.