Stock Company Management involves managing the inventory of items your business plans to sell. Stock Company Management involves keeping track of, storing and buying inventory. It can also involve predicting demand and reducing costs by having the appropriate quantity of each item in the warehouse to satisfy sales forecasts.

Keeping track of inventory and knowing when to order more is essential for ensuring cash flow, but the ideal system will vary depending on the size of your company and the type of inventory you own. Smaller companies manage their inventory by hand, using spreadsheet formulas or reorder points. Larger companies might use enterprise resource planning software.

Costs associated with holding stock can include purchase costs, storage charges, labor costs to pack, pick and store the stock prior to when it is sold, and waste or spoilage. Stocktakes are a regular part of a good inventory control system that can assist in reducing structural expenses. A stocktake combines records of inventory sold and purchased with the physical inventory on the hands of the seller. It also identifies damaged, stolen, dirty or damaged items that you can write off or subtract from the cost of the merchandise distribute the company’s profits sold.

The right amount of inventory can help you establish profitable prices, however excessive quantities will bind money and increase storage and disposal charges. Stock turnover is a key measure. It is the amount of times that stock is purchased and sold during a particular time. This ensures that there is always less stock than sales, and eliminates the need to store or pay for dead stock.