It is essential to review your business on a frequent basis to see if it is heading in the right direction. One of the most important things you can do for your business is to keep track of your goods. How efficient is your company’s stock management? Did you have what you needed when you needed it? Did you lose business because you ran out of stock? Or did you lose money because you bought too much stock? In this article, we will discuss the best stock management software, company, system, and apps.
What Is Stock Management?
Stock management is the process of keeping track of the things that your company intends to sell. This includes purchasing, storing, arranging, and tracking those items
Stock management also entails tracking how much of each item you have at any one time. This allows you to meet client demand by always having enough of each product in stock.
Furthermore, the ability to predict future sales is a crucial aspect of stock management. You may not be able to meet consumer needs if you run out of stock. But if you have too much stock, your cash flow will be slowed and your storage fees will rise. The high value of your inventory will also result in increased tax payments.
Having a buffer stock, or safety stock, is a good idea. To do this, you should store a few extra items in storage that you think you’ll use. This is helpful in the event of unexpectedly strong demand or the need to replace a defective or broken item.
How Does Stock Management Work?
Keeping tabs on stock levels and availability is the first step in running a tight ship. Either a human being or a piece of software, such as a stock management system, can accomplish this. With the help of a stock management system, online retailers can keep tabs on stock levels, product details, and reorder points. This guarantees that goods are available at all times and that customers may buy what they need when they need it.
After keeping tabs on stock, online stores can determine when to place new orders. A product’s reorder point is the point at which it must be replaced. By establishing reorder points, you can guarantee that products are constantly available for sale to your customers. Manually or with the aid of a stock management system, reorder points can be established.
Online stores need to anticipate consumer demand in addition to monitoring inventory levels and establishing reorder points. Businesses can better serve their customers by anticipating their demands with the help of demand forecasting. Overstocking and understocking are two problems that can be avoided with its help in stock management. Using past sales data and projected patterns, a stock management system can aid with demand projections. Related article STOCK MANAGEMENT: Detailed Guide and Best Practices
In addition, retailers operating online must also oversee stock replenishment. Maintaining accurate and timely inventory levels is essential for this to succeed. Automated order creation and stock level visibility are two ways in which an inventory management system can aid. This guarantees that goods are available at all times and that customers may buy what they need when they need it.
What Is the Main Objective of Stock Management?
The objective of effective stock management is to strike a balance between the following:
#1. Ensuring High-Quality Service
When applied to stock management, this service level means that the warehouse can quickly and accurately locate an item of interest, pack and ship it, and deliver it to the customer without damage or delay. In this regard, it is always important to strike a balance so that providing greater service does not significantly increase storage costs.
Consumers, especially those who do most of their shopping online, have extremely high standards due to the proliferation of omnichannel logistics and the hyperconnectivity of Logistics 4.0. This is seen both in the quality of service delivered to consumers and to retailers; customers have less patience for product shortages and are more likely to go elsewhere if they cannot find what they are looking for.
#2. In Order to Keep Inventory Expenses in Check
The decline in dead in-warehouse stock is the driving force behind the rising popularity of solutions like cross-docking and the just-in-time system. The ultimate goal of warehousing logistics is to minimize stock while maintaining service standards.
This is why it’s common practice to use measures that boost warehouse productivity as a whole, such as computerizing routine operations, implementing a stock rotation system, and optimizing order picking through the use of a warehouse management system (WMS).
#3. Attempting to Reduce Losses and Waste
Limiting spoilage and theft is an important third objective of stock management. It’s possible for stocks to go missing, be stolen, or go out of date if a company doesn’t have a full picture of where their goods are at all times.
Having a clear picture of your stock, where it is held, and its movement, is what stock management provides, so you can rest assured that these events are being limited or eliminated.
Also, waste can be reduced and losses can be prevented with the use of established procedures and records. When working with heavy loads, this is of paramount importance. Waste can occur at any point in the life cycle of an item, from when it is first purchased to when it is discarded after use.
In addition, waste that is normal or under control should not accumulate beyond a certain limit, while waste that is out of control should be strictly controlled.
#4. Boost Revenues
I would also like to emphasize that one of the main objectives of stock management is to help you maximize your profits.
In order to avoid running out of stock and losing money, a stock management system may examine your past data and product sales patterns to recommend how much stock you should keep on hand.
It can also help you find slow-moving products that need marketing before they become obsolete and a liability to your business.
By tracking the flow of goods in and out of the store and seeing any trends that may require action, stock management provides crucial insights into sales, allowing you to maximize profits while minimizing expenses.
#5. Having Resources At Hand
The production process should never be halted or slowed down due to a shortage of resources, and one of the main objectives of stock management is to guarantee that materials are always available whenever the production department requires them.
That’s why, to keep production rolling, you need to always have some extra of whatever you use.
What Are the Five Functions of Stock?
Securities encompass bonds and shares issued by public companies as well as bonds and shares issued by governments, municipalities, and other public entities.
The location of a stock trade doesn’t matter. The Bombay Stock Exchange (BSE), often called Dalal Street in Mumbai, is one of India’s most important stock markets. In the past, business was conducted here both in person and over the phone. The rapid development of technology, however, has led to the transition to online trade. Investors can trade stocks and bonds from any location.
Knowledge of the stock market’s operations can be useful, given the importance of the market to the global economy and business.
#1. More Efficient Use of Resources
Companies with a history of consistent profits see heavy trading volume on the stock market. Most people aren’t willing to put their money into loss-making firms. Therefore, companies with a track record of profitability can more easily access new financing through the equity market. The stock market helps people maximize their capital allocation and returns.
#2. Securities Pricing
The stock market facilitates the valuation of securities based on demand and supply. Securities issued by growing, profitable corporations are generally more valuable than those issued by other companies. Investors, creditors, and governmental organizations may all carry out their missions more effectively when security prices are set appropriately.
#3. Aids in the Expansion of the Economy
The purchasing and selling of securities issued by the many different corporations that are listed are made easier by the stock market. The act of purchasing and selling, often known as trading, entails a continual cycle of reinvestment and disinvestment, which creates an opening for the production of capital. Therefore, it contributes to the expansion of the economy.
#4. Leaves Room for Speculation
Speculating occurs when a security is purchased for the sole purpose of making a profit after the price rises to a predetermined level. The stock market also serves as a controlled and limited arena for speculation within the bounds of the law. The demand, supply, and liquidity of securities are all maintained by the stock market thanks to rational speculation.
#5. Indicators of the Economy
The health of the economy can be gauged in part by looking at the stock market. Share prices adapt to major political and economic shifts in the country. When prices go up, business is booming; when they go down, the economy is in a slump. The stock market is often called the “economic mirror” or “the pulse of the economy” since it reflects the state of the country’s economy.
Why Is Stock Management Important?
There are two primary reasons for the significance of stock management:
#1. Increases Company Liquidity
Good stock management is essential since stocks are essentially an investment that prevents cash from flowing into the business in the short term. Something your organization has already invested in by purchasing in bulk. Not exchanging it and not getting paid for it means it’s just sitting in a warehouse doing nothing useful for your business. The corporation will be able to produce some cash to use in other areas of business if it manages its inventory well. This makes inventory management essential for smooth cash flow.
If you want to be efficient, it is up to you to keep track of the stock you currently have, the date you expect to deplete it due to anticipated future orders, and the date you plan to restock. By doing this, you can guarantee that you have a buffer of cash that isn’t tied to stock levels. Keep in mind that better stock management leads to more money coming in.
#2. Reduces Expenses
The lowering of costs for your organization is yet another important benefit that comes from proper stock management. Your business needs to be able to accurately predict and anticipate the requirements for your products. It is dependent on this that you make sure you have enough stock to meet the demands of your customers. If you practice effective inventory management, you may avoid situations in which you incur a loss because of a lack of available items or because you spend an excessive amount of money on excess inventory that is piling up in the warehouses. Both of these scenarios could result in a loss for your company.
Furthermore, stock management helps keep costs down by reducing the likelihood of perishable goods being wasted. If the products that you sell (such as food, beverages, or cosmetics) are perishable and have an expiration date, there is a chance that they will go bad if you do not sell them in a timely manner. Because no one wants to buy spoiled goods, you won’t make any money off of them even if you sell them. You can also prevent scenarios where you are stuck with “dead inventory,” which refers to things that you are unable to sell because customers no longer want them or they are no longer relevant.
In essence, efficient management of your stock helps you save a significant amount of money.
Tips for Stock Management
A company’s bottom line and available cash flow might benefit greatly from more strategic stock management. Here are suggestions to help you organize your stock more efficiently.
#1. Reduce Stock to a Safe Level
Establishing “minimum stock levels” for each product is the first and most important step. This is the bare minimum that should be kept on hand at any given moment; once this number is reached, you know it’s time to place an order.
The minimal quantity you need to keep on hand for each product varies, depending on the nature of your company and the market for the goods in question.
You need to figure out what the optimal level for your firm is and then base your predetermined level on that.
It’s important to remember that conditions can and will change over time, so you’ll need to make adjustments and recheck the level periodically during the year.
#2. Maintaining Cordial Ties With Your Supplier
It is essential for a company to be able to quickly adjust to new circumstances in order to practice good stock management. Due to the dynamic nature of running a small business, last-minute stock replenishment or expedited shipping may be necessary.
Keeping a solid working connection with your provider will benefit you greatly down the road. They will be more eager to assist you with restocking issues, send you better products, negotiate larger order minimums, and maybe lower costs.
Having open lines of communication with your suppliers is essential to a healthy working relationship. Communicate any upcoming changes to your suppliers (such as an expected rise in sales) so that they may alter their production accordingly.
They owe you the courtesy of informing you of any delivery delays so that you can plan accordingly.
Do your best to avoid notifying them at the last minute; doing so will just increase the stress and anxiety levels of everyone involved.
#3. Prepare for the Worst Possible Scenario
In order to mitigate risks, it’s common practice to create a backup plan for when things go wrong.
Stock management can present a wide variety of challenges.
- When sales suddenly spike, leaving you short on inventory.
- Short on space for storing.
- Inadequate stock levels due to incorrect stock calculations.
- Insufficient funds for stock purchases.
- You have orders to fill, but your supplier is out of stock.
- Stock delivery delays
It’s best to be ready for potential dangers ahead of time because it’s difficult to know when these issues will arise.
Determine your next move, the necessary actions to fix the issue, and the best way to lessen its influence on the rest of your organization. When a crisis occurs, it will save you time and money if you have a plan in place.
#4. For More Efficient Stock Management, Be Consistent With Your Stock Receiving Procedures
It might seem obvious to have your staff process new stock as it arrives. Is there a unified method for receiving and processing new inventory, or does each worker have their own system? Small inconsistencies in the arrival of new merchandise can leave you perplexed at the end of the month or year when you compare your receipts to your purchase orders and find differences.
Ensure uniformity in supply distribution by training your staff effectively. Verify, receive, and unpack all boxes at once; count and examine their contents; ensure their accuracy.
#5. Make Use of a Web-Based Stock Management System
There are a plethora of options when it comes to management software; select one that includes real-time analytics for inventory and sales. In other words, you can get real-time information whenever and wherever you need it.
This is possible with the inventory management tools provided by StoreHub.
And because it integrates seamlessly with your POS, stock levels are automatically adjusted downwards when sales are made.
In addition to receiving stock updates at the day’s end, you will also receive automated alerts anytime supplies are running short. StoreHub’s software will automatically request more of a certain item when it reaches the minimum level you’ve defined, which is a huge time-saver.
#6. Self-Order Restocks to Improve Stock Management
A select few of our suppliers also provide replenishment services! This appears to be a benefit at first glance. Someone else handles the refilling process, freeing up your time and the time of your employees.
However, not all of your suppliers will have the same concerns that you do. They want to get rid of their merchandise, while you want to keep only the most profitable things in stock. Check your stock and place refill orders independently.
Stock Management Software
By automating stock processes, streamlining operations, and optimizing earnings, stock management software benefits organizations of all sizes and industries. If your company has stock, inventory management software will help you run more smoothly, provide better service to your customers, and make more money. Forbes Advisor analyzed and ranked the Top leading products in the stock management software market.
Benefits of Stock Management Software
A business that relies heavily on its stock cannot function without stock management software. Businesses that employ tools and equipment to provide services are also included in this category.
Increased earnings, simpler processes, and better customer service are often cited as the top benefits of effective stock management for businesses. However, fine-grained optimization of inventory techniques is required to accomplish these objectives. This is where the magic of inventory management software can be seen and felt.
Accurate stock tracking, purchasing and receiving, on-time delivery, and real-time inventory sync with sales platforms are just a few examples that underpin efficiency and customer service. Stock management software is a must for all of these operational considerations. Similarly, cutting down on spoilage, theft, and improper storage all contribute to a healthier bottom line. The most effective tool for identifying these problems and driving a more successful organization is stock management software.
How To Choose Stock Management Software
The best stock management software has a wide range of features and benefits, and it can be purchased at a variety of price points. However, before settling on one for your company, you need to think about the following.
#1. Scalability
Strategize expansion. Data migration from obsolete stock management software to a new system can halt operations. Business models that rely heavily on stock also evolve rapidly in today’s technology-driven environment. Your internal fulfillment operation may experience sudden and dramatic growth, necessitating the involvement of additional warehouses, 3PL fulfillment partners, and dropship suppliers. Uninterrupted development depends on software that may be scaled up or down depending on need.
#2. Methods of Doing Business
Unlike with non-perishable goods like apparel, you have to take special care while maintaining an inventory of perishable items like food and beauty products. The best way to increase productivity is to invest in software designed for your specific sector. Think about the core aspects of stock management that define your firm, the fulfillment procedures.
Is this a feature for processing orders or for letting customers know where their packages are in transit? If you want to keep track of orders from beginning to end and cut down on missed shipments, you’ll need a system with shipping capabilities.
#3. Integrating Programs
No company can effectively manage stock without connecting to other systems, such as e-commerce, retail POS, vendors, shippers, 3PL services, and accounting software. Check for open APIs and pre-built interfaces with your preferred platforms when comparing inventory management software.
Overview of the Best Stock Management Software
Here is the top best stock management software.
#1. Cin7
Cin7’s plans include extensive integrations, stock tracking, automated purchasing, and warehouse management features, and they’re priced to be affordable for businesses of varying sizes. Also, Cin7’s stock tracking and warehouse management features, in conjunction with your preferred shipping software, allow for seamless end-to-end order, inventory, and shipping management.
Multiple warehouses’ stock levels can be synchronized; components of bundled or assembled items can be tracked; purchase orders can be automatically generated in response to sales velocity; and orders can be automatically forwarded to warehouses or dropship suppliers for fulfillment. Every Cin7 package includes a point-of-sale (POS) system, allowing you to keep tabs on brick-and-mortar transactions alongside your virtual ones.
All Cin7 programs include access to 24/7 assistance, in addition to extensive online learning materials and a curated knowledge base. Also, read STOCK MANAGEMENT SYSTEMS: Best Online Systems In 2023
#2. Ordoro
All the way from supply chain management and parts-based tracking of stock to delivery, Ordoro simplifies every step of multichannel sales. Ordoro synchronizes stock and shipment data with every major marketplace and shopping cart in real-time. It also offers POS interfaces with Square, Shopify, and others through an open API, allowing for synchronized stock management.
Ordoro is distinguished from its rivals by its superior purchasing automation. It may distribute orders to various storage facilities and dropship suppliers mechanically. In addition, it generates purchase orders automatically based on sales projections or reorder levels with a single click. When it comes to produced items and order bundling, Ordoro is likewise a formidable force. Products that are produced to order, manufactured on demand, or included in a subscription service might benefit greatly from kitting tools that keep track of materials from procurement to shipment.
In addition to support tickets and a knowledge base, Ordoro offers live phone help from 9 am to 6 pm PT, Monday through Friday.
#3. inFlow
In addition to the standard functions of high-end stock management software, such as stock tracking, purchasing, and fulfillment, inFlow also includes functionality tailored to the needs of B2B and wholesale enterprises. The stock management features of inFlow can accommodate businesses from beginning to end.
Multi-warehouse management, drop shipping, and automated purchasing are also supported, as are tracking of parts, assemblies, and final units with or without barcodes. inFlow may also connect with popular online marketplaces, shipping apps, and 3PL companies.
inFlow’s B2B and wholesale capabilities are its strong suit. Select items from your stock can be used to populate virtual showrooms, where you can control the information presented to different customers, including pricing, minimum order requirements, and expected delivery dates. As an added bonus, inFlow can help you with things like B2B quotes and invoices, sales rep order routing, manufacturing production workflows, kitting for make-to-order products, and efficient pick-and-pack procedures by utilizing location mapping.
inFlow offers round-the-clock online and phone support, including live chat, email, and a comprehensive Help Center with video training.
Stock Management Company
Having a reliable stock management system in place is more important than ever before. Numerous firms offer comprehensive services to meet your supply chain and stock management requirements. But the question is, which one should you pick?
Here are the top best stock management companies you can consider.
#1. Fishbowl
When it comes to managing production and stock, Fishbowl Warehouse is by and away QuickBooks’ best option. QuickBooks has been the primary accounting system for many firms for many years. They are able to maintain utilizing QuickBooks with increased productivity thanks to the integration with Fishbowl Warehouse, which unifies their accounting and inventory solutions. What to anticipate from Fishbowl Warehouse is as follows:
- Real-time stock counts.
- Xero may be easily integrated, centralizing your accounting and stock management.
- Keep an eye on stock at multiple stores.
- Keep an eye on numbers, such as sales figures.
- Produce and publish barcodes.
- Order more stock automatically.
#2. Netsuite
Netsuite is a company management system that may be used in a wide variety of contexts. Their Cloud Enterprise Resource Planning (ERP) system is widely regarded as the best in the industry. Their ERP system includes warehouse management applications in addition to those for managing purchase orders, production, and the supply chain. The stock management solution, by itself, is worth the price of admission if it helps you streamline and consolidate numerous elements of your business onto a single platform. Their stock-control features consist of:
- Manage stock, lead time, and reorder points automatically.
- Stock management and visibility across numerous warehouses.
- Your company’s stock can be quickly and easily adjusted.
- With the help of the stock count function, regular and precise stock counts may be performed.
- Sort your stock easily by value, volume, price, and more.
#3. Lead Commerce
Another option for managing stock in the cloud is Lead Commerce. They provide many of the same advantages as these other stock management firms, albeit in a greatly abridged form. They want your stock to always be positive. What to anticipate from Lead Commerce is as follows:
- The dimensions of stock (stocked, committed, available, back-ordered, and on order) are the focus here.
- It is useful to keep tabs on SKU batches for perishable, FIFO commodities.
- Orders for products with several components or that need assembly before shipping can be easily customized.
- Tracking stock levels across many warehouses down to the SKU level.
- Individualized stock analysis and reporting. Make your own tailored reports to monitor anything you choose.
Stock Management Apps
In order to guarantee that there are sufficient inventories, raw materials, and supplies to meet production and consumer expectations, inventory managers employ apps designed specifically for stock management. An organization’s capacity to turn a profit is closely tied to the efficiency with which it manages its stock. Smartform customization, robust data analytics, and rapid reporting can all contribute to better inventory management.
However, a competent stock management app, also known as stock management software, will allow its users to generate comprehensive reports, display data analytics, and combine the two together to acquire useful business insights that can be used to make informed decisions. Here are top stock management apps that companies should consider employing.
#1. SafetyCulture
With SafetyCulture, businesses can monitor stock, generate reports, and organize their supplies all in one place. Businesses may streamline their inventory management with the help of this software. Any computer or mobile device can use it because it is stored in the cloud. If your company is looking to save time and effort on inventory management, look no further than SafetyCulture. The SafetyCulture public library has thousands of free, editable templates you may use for stock management, whether you’re just getting started or trying to find a product that works better for you. Whenever an inspection is finished and synced, a report is automatically generated and sent to the inventory manager.
Furthermore, SafetyCulture’s inventory management features include the ability to automatically produce customizable stock reports. The ability to include audiovisual files, product SKUs, notes, logic queries, and geolocation data simplifies inspections further. Integration with other inventory management systems is possible with this software, further increasing the efficiency of automated processes. The app pairs with the SafetyCulture smart sensors. The quality of perishable commodities can be monitored and preserved with the aid of this sensor. The sensor keeps track of environmental conditions like temperature and humidity as well as events like door opening and closing.
In addition, SafetyCulture also provides free customer assistance and learning materials to facilitate solution adoption and onboarding.
#2. Jazva
Jazva can help companies find the sweet spot between automated purchasing, real-time inventory updates, and delivery monitoring. Also, Jazva ensures that stores have sufficient quantities of in-demand items at all times.
In addition, Jazva’s software is compatible with a wide range of e-commerce solutions, including but not limited to Shopify, Woocommerce, Magento, and many more. It simplifies inventory management on a global scale. Those in the wholesale and retail industries with high transaction volumes would benefit most from using this software.
#3. SKULabs
SKULabs is a multi-channel stock management app that provides a single hub for managing stock levels across many sales channels. It’s simple to monitor stock levels across numerous sales channels because the software works with popular marketplaces like Shopify, eBay, and Amazon. Additionally, SKULabs provides barcode scanning, live updates, and robotic order fulfillment. Businesses can save time and work more effectively thanks to these additions. The application also generates in-depth data that may be used to strike the best balance between stock and profit. SKULabs is ideal for companies in the e-commerce, wholesale, and distribution industries.
What Is the Difference Between Stock and Inventory?
Inventory and stock are two similar yet distinct concepts. Products in stock are available for purchase by buyers. Your products and the raw materials and manufacturing tools that go into making them are both part of your inventory. Despite the succinct nature of the definition of stock, there are in fact four distinct categories of stock: raw materials, WIP, MRO supplies, and finished items.
- Stock. Products in various stages of completion, as well as components and raw materials, are all considered stock. More stock, or more things sold, means more money in the bank for your company.
- Inventory. Finished goods and the company’s entire collection of assets used in production are both considered part of the inventory.
Conclusion
In conclusion, effective Stock management is crucial to the smooth operation of any online store. It includes keeping tabs on stock, determining whether to reorder, estimating sales, and handling replenishment. Avoiding stockouts, optimizing inventory levels, and increasing customer happiness are all possible outcomes of a well-implemented stock management system for online retailers.
Frequently Asked Questions
What is basic stock management?
The practice of ordering, storing, managing, and regulating goods is known as stock management. Stock management pertains to all items used by a company to manufacture its goods or services, from raw materials to completed goods. In other words, stock management encompasses all aspects of a company’s inventory.
What are the four 4 methods used to keep inventory control?
Just-in-time management (JIT), Materials requirement planning (MRP), Economic order quantity (EOQ), and Days sales of inventory (DSI) are the four basic inventory management methods.
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