Do you want simple ways to better manage your stock?
Here’s 5 Steps to Supercharge your Stock Management, Cash Flow and Profit
Firstly, think of stock as dollar bills piled up on your stockroom floor!
To reduce the money tied up in stock you need to manage it better.
Step 1 – Getting The Balance Right
You need to have enough stock to deliver to customers’ needs, but not too much so that it consumes precious cash in your business.
Stocktakes help you to know how much stock you’ve got and where it is, so you don’t accidentally overorder or lose stock.
Focus on security of stock, helps to avoid wastage and theft.
Step 2 – Cost and Selling Prices
Buying prices need careful attention and constant monitoring, so you maintain your profit margin.
Step 3 – Stock Management System
Handling stock efficiently is the key.
Stock location can cost or save you lots of money. Onsite, outsourced or consignment – which is best for your business? Do some analysis to compare cost.
Measurement, labeling, systems, reporting, picking/packing/distribution… all have an impact on efficiency and cost.
Step 4 – Cash Flow Impact
Good Stock management has a big impact on cashflow.
Slow moving or obsolete stock is dollar bills piled up on the stockroom floor – you need to get rid of obsolete stock to improve cash flow.
Step 5 – Profit Impact
Good stock management has a big impact on profit.
Having just the right amount at the right time, will ensure you a good profit!