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What is Stock Control Software?
Stock is a supply of something for use or for sale. Making sure that your business has the right amount of stock is essential not only to meeting demand, but also to profitability. This process is called
stock control.
What is Stock Control Software?
Stock control is defined as the process of making sure that the correct level of stock is maintained to be able to meet demand, while keeping the cost of holding stock to a minimum. One way for businesses to manage stock is by using stock control software.
Without stock control software, it’s
hard to accurately track items your business owns. Gone are the days of tracking stock with a pencil and paper. Today
stock control systems based on barcodes or radio-frequency identification (RFID) make it possible for business to see when shipments come in, view the location of raw materials and be alerted when their products have shipped. Using
stock control software allows businesses to reduce the time and effort that was once required for basic traffic. As a result, businesses can now focus on analyzing, finding and reducing inefficiencies in their model.
Why is Stock Control Software Important?
For a company to run efficiently and turn a profit, managing stock is essential. Without accurate accounting of stock levels, the location of that stock and the quantities needed to complete incoming orders, no company can run efficiently enough to turn a profit and generate growth.
Inaccurate stock records create a number of problems including a higher lead-time. A higher lead-time means a slower response to demand, market changes and stock-outs, which can, in turn, create customer disapproval when products aren’t available as needed.
With
50% of small businesses in the UK failing within the first couple of years according to retail magnate, Theo Paphitis, the margin of error is too small for small businesses to not meet demand because of poor stock management.
Is Stock Control Software Worth the Investment?
In some instances, perceived associated costs of stock control software might make businesses owners hesitant to invest. However, switching from manual stock management to stock control software impacts overall profitability.
Some experts estimate that companies can
increase profitability by as much as 20 to 50% through careful management of the goods they’re selling. After all, besides fixed assets, stock is often the largest price asset of any business. Allowing such a critical business asset to go unchecked and unmonitored can lead to a decrease in profits.
It should come as little surprise that the
return on investment for stock control software is enormous. Here are the five areas where most
businesses see ROI from better stock management:
- Managing Inventory – Excess stock, or lack of stock, can cost your business. Warehouses can reduce costs by waiting until stock is needed to make a purchase and can earn price breaks by ordering in larger quantities.
- Saving Space – Defined storage areas and bin locations lead to a more organized and efficient warehouse.
- Maximizing Labor – Increased productivity, a hallmark of quality stock control software, allows small business leaders to get the most out of their employees.
- Satisfying Customers – In addition to benefiting from good customer service, satisfying customer orders also allows your company to honor service-level agreements.
- Reducing Wear and Tear – Fixed assets, such as pallet jacks and trucks, that are involved in moving stock can benefit from the consolidated activity and efficient routing provided by stock management systems.
If your business is serious about maintaining a competitive edge in the marketplace, you need a stock control solution. Not only does selecting the correct stock control software help your business to increase efficiency, it helps save money in the long run and frees up employee time.
Have a stock control management question or concern? Tell us in the comments.
