Stock management is known as calculating and effectively maintaining how much stock a corporation should have at any particular moment. It encompasses all procedures related to ordering, tracking, regulating, and keeping inventory. Inventory management includes the complete system of monitoring and controlling items, inventory, customer demand, fulfillment, forecasting, and supplier details.
Here is everything that can clear your mind about stock and inventory management.
Difference between stock management and inventory management
Stock management is known as measuring, maintaining, and storing whole items to satisfy customer needs. Inventory management is the practice of keeping a record of all the things used in the operation of your firm. Because not all inventory is stock, stock management is a component of the entire inventory management operation.
Stock management and inventory management are terms that are frequently used together. Stock management, meanwhile, is simply one aspect of your inventory management and control procedure. Inventory management is similar to stock management in that it manages the goods in the shop on time.
Three most typical stock issues that businesses face
When it comes to supply management, companies confront three significant challenges. Excess inventory is the first issue. Overstocking happens when you order an excessive amount of surplus merchandise. It implies you’ll have to invest in additional storage capacity and transportation expenses.
The second issue is a lack of inventory. It occurs when defective merchandise is on hand to fulfill the customer’s desire. If you don’t have enough stock, you risk destroying customers to rivals or wasting too much money on the inventory you won’t be able to sell.
Wastage is the central point. When you have inventory, but it’s out of date, no more in favor, outdated, or unavailable for sale for various reasons, this is the situation.
How can you make stock management simple in your eCommerce store?
Running an online store is a terrific business venture that may be pretty successful, specifically as more people purchase online. On the other hand, today’s customers are demanding and expect the ability to buy anything they want at any time. To satisfy these client expectations, you must accurately forecast your inventories. The easiest method to accomplish this is with the assistance of an inventory management system.
Different types of inventory and stock
Here are four types of inventory and stock;
Inventory of raw materials and components
Raw materials and components encompass any inventory element used to manufacture completed goods, including direct and indirect materials. Direct materials are a component of the finished product. Indirect materials can make the product.
Work-in-progress inventory is any material utilized to make a final product. Work-in-progress inventory is not raw materials but is also not a finished product available for purchase.
Packaging comprises everything you need to hold your goods, package them, and send them. Tags, wrapping paper, and cardboard boxes might be part of the packing stock.
Finished goods are any products that you offer in their complete. Finished products are items in your inventory that are ready to sell.
With NetSymm we can help with inventory management. Contact us for a demo.