2:34 AM
Gracy Mathew
Inventory is a financial investment made by a business house for monitoring its stock. If not utilized properly to get the purpose served, it can mar the cash flow. Companies spend a lot of manpower and finance on monitoring the stock and managing the inventory. Stock management is the process of monitoring stock in an inventory. If not implemented properly, a company can fall short of supplies that in turn, slows down the pace of production. With the growing world economy, the need of modernizing the methods of stock management is deeply felt.
A modern structured method is required to cut down the costs of inventory management. An automated method provides an edge over the backdated manual method that is full of such disadvantages as inventory error and higher costs. A successful stock management method ensures sufficient supply of raw materials for efficient production to a company. The level of productivity falls due to slow production, if the stock management system is faulty and adequate raw materials are not in stock. Slow production means shortage of end products and that in turn brings in lower sales. Stockout is a situation that a company running out of stock faces. Stockout is the bane of a company's public image and customer service. If the company does not try any means to overcome stockout is bound to collapse. And, modern stock management is the best solution.
Stockout demands for supply of raw materials and uncontrolled supply results in overstock. Overstock has some disadvantages. If the stock is not put to use timely and its expiration date passes on, the company will make loss. space is required to accommodate stock. If the stock is more than what is needed, the space may fall short. Therefore, proper and balanced stock management is a most important requirement for a company. Just in time stock and buffer stock are the efficient stock management systems.
A modern structured method is required to cut down the costs of inventory management. An automated method provides an edge over the backdated manual method that is full of such disadvantages as inventory error and higher costs. A successful stock management method ensures sufficient supply of raw materials for efficient production to a company. The level of productivity falls due to slow production, if the stock management system is faulty and adequate raw materials are not in stock. Slow production means shortage of end products and that in turn brings in lower sales. Stockout is a situation that a company running out of stock faces. Stockout is the bane of a company's public image and customer service. If the company does not try any means to overcome stockout is bound to collapse. And, modern stock management is the best solution.
Stockout demands for supply of raw materials and uncontrolled supply results in overstock. Overstock has some disadvantages. If the stock is not put to use timely and its expiration date passes on, the company will make loss. space is required to accommodate stock. If the stock is more than what is needed, the space may fall short. Therefore, proper and balanced stock management is a most important requirement for a company. Just in time stock and buffer stock are the efficient stock management systems.
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