Running a retail business is not possible without the management of your stock of products or items. Even starting up a new retail business requires inventory management capabilities of the software you choose for your business. Reliance on the software tools to intelligently monitor your business’s inventory control system is compulsory in today’s decade of the modern age.
What is Stock Management?
The function of understanding the stock details of a company including the different demands on that stock is called Stock Management. These demands are affected by both the internal and external factors and mostly get balanced by generating purchase order requests. The whole purpose of managing stock is to keep supplies at a considerable level.
What is the Purpose of Stock Management?
You must always ensure the availability of stock to fulfill the needs of your customers. There must be always enough and sufficient storage of stock to keep your business running smoothly and ferociously. Being on the safe side, you must allow a safe amount of stock so that you can tackle and handle any kind of unforeseen situations in business highs and lows.
What are the Main Features of Stock Management?
Some of the main features are discussed below when we mention the management of stock in your business
1. Maximum Level of Stock in Inventory:
The maximum level of stock in the inventory allows the top up or addition of your stock up to a certain level. You cannot keep your stock more than the maximum level of inventory stock.
2. Minimum Level of Stock in Inventory:
The minimum level of inventory’s stock depicts the level of stock which creates alarms and notifications for your system and forces you to adjust and maintain your stock up to the desired level. This ensures the sufficiency of your stock to fulfill the customers’ demands.
If your stock is existing between the minimum and maximum levels, it means your business is in a good position to run smoothly till you run out of stock. It depends upon you that whether you create an alarming notification or not when 30% of your stock is left. The percentage may vary from 10% to 40% depending upon your business requirements.
3. Stock Transfer between the Warehouses:
While handling a multiple-location business you must avail of cloud-based software with a centralized database. Suppose you possess many warehouses in a country, you can now transfer stock from one warehouse to another using this feature of your software. It helps you monitor the stock-in and stock-out status of your inventory’s warehouses at any given time.
4. Stock Maintenance of a Warehouse:
Sometimes the physical quantity of stock does not match with the base unit quantity. It means that what your software tells you might not be the same as what the warehouse tells you. There might be a slight difference like understock or overstock situations. Thus you can have the facility of handling your Stock Management once you avail of the cloud-based ERP software. You can add up or subtract some stock to maintain a certain level required by the smooth flow of your business.
What is the Main Objective of Stock Control?
Most of the businesses deal with physical products and items to be sold to their customers. The stock control has the main objective of time and resource management while providing an ample amount of stock for your customers. You should never run out of stock and such a situation is avoided by a good sales forecast as well as inventory’s stock control. To allow smooth functioning of business you must select a reliable software that allows transparency in your business and strictly adhere to the laws and rules defined by you.
The data of the software must not be easy to hack and data encryption is a must feature. With the cloud-based ERP software, you promise your business information to be totally and fully encrypted through such algorithms that data-stealing becomes impossible. A good approach to stock control is to completely be aware of the sales and purchase invoices so that you always know before the crucial time of facing the understock situation. The hot-selling products are those items that generate a higher amount of sales and hence the revenue.
Conclusively, the analytical reporting of your software always keeps you well-informed about your business statistics and your financial health as well. The cash flow is improved when you utilize good-quality software like SMACC that fulfills your dreams by accelerating your business to a brand new level of victorious business profitability. Hence you must avail of the offer of SMACC’s features to boost the growth of your retail business deliberately.
The financial health of your business relies on your smart choice of software so choosing the best inventory software is an extremely critical task for the management of a running or startup business.