Stock is an Anglo-Saxon word, which translated into Spanish, refers to the amount of products, merchandise or goods that a particular company or person has.
For a business that sells products of any kind, control of the quantity and availability of the stock is extremely important. Keeping this issue under control allows the business to continue at an adequate pace and does not jeopardize sales due to lack of goods.
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Stock management to maintain the flow of production
Stock management of any business of sale and/or distribution of products, is one of the main tasks to ensure the proper pace of a company of this type.
This requires extensive knowledge of both the products and the existing and future demands. In this way it is possible to predict with a certain level of accuracy which products will be needed for the next week, month or year.
An exaggerated number of products in stock can have serious consequences for the business, such as loss of capital. On the other hand, a shortage of goods can also cause the business to lose money and customers, which would decrease its regular rhythm.
It is therefore important to have the necessary tools to ensure that this flow does not stop or lead to significant losses for the company.
However, according to their functionality and what you want to estimate or calculate, the stock types can be divided into different groups.
Types of stock according to their functionality
This is the stock where a balance is maintained between the products stored, the time they can be kept in the warehouse and the space they occupy in stock.
In this sense it is important to take into account the costs of storage and the demand for that merchandise.
It is very easy to define, as its name says. It refers to the total amount of goods that you have in a warehouse.
It refers to that section of the stock that is used to meet current customer demand. Sometimes it is also known as cyclical stock. It is the goods that are regularly sold or distributed under normal conditions.
This part of the stock must be replenished frequently, before running out of stock, in order to maintain the adequate flow of the company that we have already mentioned.
It refers to the actual availability of existing goods in stock, which can potentially be delivered to customers.
This process is significantly influenced by your knowledge of your business and your customers. In this way you can estimate what part of the stock has a real chance of being sold or distributed.
Without a doubt, proper stock management is a fundamental part of the success of any company that is dedicated to selling a certain product. If you achieve the efficiency of this process, you will undoubtedly increase the productivity of your business and with it the profits.
To achieve this goal you must join the automation in terms of storage, having a good management software that allows you to control the stock you have, such as Innovadeluxe ERP.
This way your business will be much more productive and you can anticipate any problems or irregular situations.