When your business grows, your needs grow exponentially. Especially when it comes to Retail Businesses, Stock Management also known as Inventory Management, is an immense challenge that you can meet easily with the help of a Stock Management Software.
So here in this article, we are presenting everything that you need to know about Stock Management and Stock Management System.
If we take a look at the retail supply chain:
- The stores request the head office for new stock.
- Then the head office places purchase orders to the vendor.
- The vendor ships the goods to the warehouses where the goods are stocked.
- From the warehouses, goods are shipped to the stores.
- Stores sell the goods to consumers.
In this flow of the retail supply chain, the physical quantities and the costs of the goods (stock) has to be managed efficiently. This process is called Stock Management. Here stock refers to the finished goods or any raw material that is used to make products or provide services.
How Does Stock Management Affect Your Business?
The price of a product for a consumer includes the transportation charges and other taxes. Thus, we can say that transportation of the goods affects the price and obviously your business. So the stock supplies should meet the demand and storage capabilities.
If you supply the goods less than the demand, there would be stock out and you have to ship the goods again. Thus, you may need to bear more expenditure. If you supply more than adequate, the store managers will be in a dilemma on what to do with the excess stock. For some kind of goods like food and drugs, we cannot store them for more days, concerning the tough maintenance. And returning the goods will obviously cause unnecessary expenditure.
All these things directly impact your business. So, an efficient stock management is indeed necessary. A successful Stock Management involves ensuring that the goods are available when they are needed, alongwith tracking the availability of inventories and their use.
What Are The Challenges In Manual Inventory Management?
For businesses, be it an SMB or a big brand, improper or inaccurate inventory management can cost a fortune. Manual stock management involves some challenges despite its simplicity and sense of control. And here are some of the challenges:
This is the main problem with manual stock management. We have to maintain the stock in an appropriate level and each transaction should be accounted for. For this, a continuous monitoring is needed. And the data should be shared with the higher-level management. So we have to hire more employees to computerize the data.
Thus, manual stock management takes more workforce and time. If we think smart, we can use the resources for productive activities and we can save a considerable amount of time and money.
- Human Errors
Even a smart man makes a mistake. With manual inventory management, the probability of human error is more. The store manager may forget to account some transactions. Or he may make a wrong count of the goods. Or he may fail to forecast the demand properly. These mistakes cannot provide a successful stock management which affects the business badly.
Stock Management Software
Technology shows a solution for every problem. Successful stock management can be achieved with the help of SaaS products. Stock Management Software includes business applications that manage, track, and organize material purchases, product sales, and other such production processes. The days of tracking stock with paper and pencil are gone. As we are in the digital world, businesses can widely use the global and smart technologies and trends which include Radio Frequency Identification (RFID) or barcodes in order to find the shipping details of the products such as when the shipments arrived, when the products have been shipped, and the location of the raw materials. By using a Stock Management System, businesses can lower their efforts and time.
What Is The Significance Of Stock Management Software?
Experts report that nearly 60% of the Chief Supply Chain Officers are optimizing their stock management in order to reduce costs and help control. No company can perform proficiently enough to generate profit and growth without precise accounting which includes certain elements like how much stock a business consists of, the location of a particular stock, and what resources are needed to support future and incoming orders. Stock inefficiency is common for most of the businesses.
When several store managers were asked about the challenges in managing a retail store, most of them felt staffing as the biggest challenge. Thereafter, freighting, stocking and pricing were the challenges mentioned by them.
But with the use of a Stock Management System, most of the above challenges can be faced effectively.
Advantages of Stock Management Software
Save Time And Money:
- One of the utmost benefits of a Stock Management Software is the fact that it helps in saving time. It will keep all your business records up to date.
- You will find easy to access numbers which are needed for the purpose of reporting information and re-stocking.
- Such assets allow you to find where your business is losing money and also where you are making money.
Reduced Overhead Expenditures:
You will be able to keep your production running smoothly and operate within a time-frame.
You can also save additional personal costs, particularly that are associated with the stock management and stock records.
Stock management system allows you to run your business automatically which results in better outputs. It automates several functions and performs all the necessary calculations with ease. Thus it results in utmost business efficiency and profits.
The Need To Integrate Stock Management Software With Your Back Office
The 3 major benefits one can gain by integrating a Stock Management System with your back office and accounting system are:
- Optimizing stock in order to meet ROI goals and product availability
- Providing stock visibility in order to stock chain partners
- Asserting stock precisely in financial reports
Benefits Of Stock Management Strategy
- Increases the accuracy of inventory orders
- Leads to a more organized warehouse
- Assists you in saving your money and time
- Raises productivity and efficiency
- Keeps your customers coming back for more
With the help of an efficient and apt Stock Management System, businesses can curb the unnecessary labour and transportation charges. They can supply their consumers with fresh and continuous stock. Thus a suitable Stock Management Software will create a win-win situation for both the businesses and consumers, thereby uplifting the goodwill of the company.
So, don’t waste any more time and extend the wings of your business to a Cloud-based Stock Management System Software in order to take your business to new heights!!