How Your Business Can Manage Stock More Effectively

handbags
https://www.pexels.com/photo/fashion-texture-luxury-design-135620/

Many businesses rely on holding stock in order to meet customer demand – including B2C customers like shops or restaurants, and B2B suppliers and manufacturers. Effective stock management is key to ensuring you can meet your customer demand, without losing money through damaged or stolen stock.

The problem with holding stock

When it comes to stock management, many businesses face the tricky balancing act of holding enough stock to meet fluctuations in demand or to take advantage of suppliers’ deals, without holding so much that you can’t sell it all. If you’re struggling to shift your stock quickly enough to generate cash to pay other expenses, you may end up with cash flow problems.

Businesses who hold large amounts of stock, or even small amounts of valuable stock, are also more at risk of theft, and have more to lose from weather damage, fire damage or stock deterioration.

So what can you do to make stock management work best for you?

Track and forecast your sales

This task is a traditionally laborious one, involving charting all your previous sales into a big spreadsheet to try and spot patterns and help you work out what might come next. These days, there’s lots of handy financial management tech out there that can help make this task a bit easier.  

Essentially, this will help you identify where your sales peak and drop, to help you adjust your stock orders to match.

Find suppliers that can ship at short notice

Finding the right supplier isn’t just about finding the cheapest deal. Even with tracking and planning, businesses still occasionally end up in a situation where they unexpectedly run out of stock.

If you find yourself in this situation, you won’t want to have to wait for a three-week shipment from China – even if it’s 10% cheaper than one based locally.

Finding a supplier that can guarantee shorter delivery times, can help you take a more flexible approach to your stock management.

Consider asset-based lending

While some businesses accidentally order too much stock, some businesses just can’t avoid holding large amounts of stock. For both of these cases, consider if asset-based lending could help you. This service helps you release cash tied up in stock, property, machinery and other assets, that you can then use for growth or other expenses.

Protecting your stock against theft

Businesses that hold a lot of stock at once can be an attractive target for thieves – especially if you’re stocking valuable items, or items that are easy to sell without causing suspicion. Make sure you take all the necessary steps to protect against theft – install security cameras, security alarms and ensure that all your locks are up to standard.

Storing your stock safely

If you’re buying in bulk or buying perishable stock, you need to make sure that it’s stored safely to avoid deterioration that could cost you money. Damp, dust, cold weather, hot weather and pests can all pose a risk to your stock.

Consider investing in a climate-controlled warehouse or stock room. This can help to keep your stock cool in warm weather, prevent frost damage in cold weather, prevent condensation from forming inside packaging, and protect items like wood, paper or electronics from humidity.

Peace of mind if things do go wrong

Even with these measures in place, it’s still important to make sure your business is protected against losses caused by stock problems.  

Look for a flexible business contents insurance plan that will let you add or remove things to build a plan that suits your business. Ideally, it helps to have a plan that allows you to increase your stock cover temporarily to cover seasonal increases in stock – for example in the weeks leading up to Christmas.

Similar Articles

Lead Nurturing Program- The Magic Pill For Your Business Growth

None can deny the fact the lead nurturing is one of the most vital processes that every business needs for growing its sales funnel. Since it is only a very small percentage of leads that you capture by your lead generation programs are likely to be ‘sales-ready’ if they are not persistently nurtured properly.

Sydney Travel Guide for Business People

Going to Sydney for business is a lot different than going to Sydney as a mere tourist. Business people mingle in different areas and like other things other than just touristic attractions. What’s more, your trip has a real purpose. This means the journey needs to be efficient and quick, and the accommodation top notch so that you can easily get your work done and get some well-deserved rest.

Workplace

Office days can sometimes be rather dull and boring. Long working hours and office meetings can make your day mundane and long. It does not have to be that way! You can certainly add some fun and excitement to your boring business processes.

Plastic Fittings

These days it’s no more difficult to find a hardware and construction store where you can get your necessary equipment easily. Plastic fittings such as velcro slides, side release buckles, swivel or eye snap hooks, plastic keepers, triangle or rectangle loops and so forth can be bought from a multitude of stores. 

A business card is equally important like any other promotion tool in any business. A business card should not only give information to your customers, but it should also be in a position to attract new customers to your business. 

8 Effective Marketing Ideas To Grow Your Plumbing Business Better

The plumbing business is a sustainable livelihood for a lot of people. After all, people will always deal with piping in their homes no matter how modern one’s home is.

work platforms safety height

The use of safety rails is among the most effective method of protecting the wellbeing of workers, as they don’t require the worker to utilise any additional safety measures.

Broken down car

The newest Consumer Rights Act was issued in 2015, equipping customers with the power to protect themselves. It was the biggest change in consumer rights in a generation; more rights and protective methods are now available to consumers after they’ve made purchases than ever before.

Business Myths

Big businesses generate a lot of publicity — not all of it good. With great renown comes a great number of myths about a company's products, services, and marketing.