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| Your Guide to Stock Inventory Management |
Stock inventory management refers to the method of ordering, storing, using, and selling a company's or an organization’s inventory, including handling raw materials, components, and finished products, and storing and handling those items.
Right Way to Manage Stock Inventory
Stock Inventory Management is the process of counting and evaluating materials regularly at the end of the year.
Inventory management in business terms, means the right stock, at the right levels, in the right place, at the right time, and at the right cost as well as price. It is part of supply chain management.
Performing regular stock inventory and reconciliation helps identify flaws in your inventory management system.
Stock discrepancies are not necessarily linked to malicious actions such as theft; they may be linked to weak processes where records are not systematically registered or goods are misplaced in the warehouse.
Doing regular stock reconciliation will help the overall management of the warehouse and its stock.
Furthermore, having accurate records of your stocks will make sure that you deliver projects on time by avoiding stock ruptures and anticipate stock replenishment orders on time.
The function of inventory management control is to determine the sufficient amount and type of input stocks, products in-process, and finished products, facilitating production and sales operations and minimizing costs by keeping them at an optimal level.
One of the important inventory management processes is to periodically conduct a stock reconciliation. This leads to comparing the written inventory records (theoretical records) against the actual physical stock found on the shelves and palettes in the warehouse. If the records do not match you will have to investigate where the error comes from and explain how it occurred. To do this, complete the following steps:
- Start by comparing your theoretical stock with the physical stock Always count twice and double-check that you have not misread the stock number and that your written theoretical record shows the amount of stock in the correct measures. Make sure the goods are not misplaced or stocked in the wrong place
- Check for errors in your records. Basic counting errors can lead to wrong records. If the records match after checking the maths, the stock reconciliation can be closed. If the records still do not match, check for missing paperwork. If you are missing certain items, be sure that all release notes have been accounted for and filed. If your stock is too high, be sure that all goods received notes have been accounted for and entered.
- Talk to all of the employees who have access to the warehouse to find out possible reasons for any variance between the inventories.
- Edit your inventory records to match your physical count, even if you cannot explain the difference.
- Fill in a missing stock report where you explain the discrepancy as well as the value difference.
Conclusion
Stock inventory management is one of the most important integral parts of Warehouse inventory management as it helps you to evaluate your stocks on a regular basis in order to ensure that you are on track.
