Benefits of Stock Control System for Small Business
"An estimated $1.1 trillion dollar of inventory, cash and cash equivalents is lying idle with US Corporations. Poor stock control and lack of proper planning are deemed to the root causes."
In trading, every penny counts. Every ounce of stock matters. That is why successful business owners invest in buying an effective stock control system for small business as the first thing in their business agenda.
There are various kinds of inventory control system. There are desktop solutions which can be used to control stock in a single location, mobile apps that can be used within a given geographic limit and cloud based centralized inventory management that can control stocks located in multiple warehouses spread across countries.
These inventory control systems do 3 things best:
- They give ways for better stock control
- They indirectly improve sales
- They reduce expenditure on stock procurement
Shouldn’t your business also be enjoying the benefits of automatic stock control?
In case you are still weighing the pros and cons of an investment, here are 5 benefits that will convince of the worthiness of investing in a good stock control system for small business.
1. Saves Manual Labor and Inaccuracies
Manual processes, especially manual stock management will be infested with inaccuracies. Automated stock management systems come with auto-fill features which also saves time which otherwise will be required for filling up routine information.
System based entries ensure proper legibility of information and proper pick up of instructions of orders and dispatches thus reducing the number of errors to a bare minimum. Other benefits of an effective stock control system include archiving of reports and stock ledgers for future reference, perpetual updating of inventory, consistent stock reports, etc.
2. Provides Accurate Real-Time Inventory Levels
A cloud based inventory control system can give real-time information about how much stock is left, in which warehouse, in which bin and for how many days. One can get accurate striped-down information about stock shelf lives and much more with an automatic stock management program.
Needless to say, it converts the routine chore of inventory tracking into a hassle-free affair that can be done with a centralized cloud based warehouse stock control system. That is, even if you have inventory stored in multiple warehouse locations.
3. Aids Long-Term Stock Forecasting and Procurement
One of the noted benefits of stock control system is that it can provide vital information like which vendor supplies the best quality material at best prices, the ideal shelf life of a material, average lead time, average consumption and so on.
Further, it can also provide periodical stock reports like:
- Stock status reports
- Stock ageing reports
- Stock movement reports
- Stock purchases
- Stock issues report
- Stock returns report, etc.
Such information can be used to plan stock demands in the immediate future and which vendor must be chosen for placing the orders with. The procurement process will also improve in operational and monetary terms.
4. Improves Internal Stock Handling Efficiency
For a business owner wondering how to manage stock control, an automatic inventory management system can improve the internal stock handling efficiency in a multitude of ways, like:
- Eliminates the possibility of pilferage
- Helps track abnormal wastage of stocks
- Tracks shelf life of perishable stocks effectively
- Can notify when stock levels are falling beyond threshold limits
- Raises automatic Purchase Orders (POs) for routine purchases
These above mentioned facilities of a simple stock control system will indirectly lead to substantial financial savings, as explained in detail below.
5. Leads to Substantial Financial Savings
As said in the previous point, when your stock ordering process is streamlined, you place the optimum amount of stock in each order thus bringing down stock carrying and ordering costs.
Secondly, possible mistakes of raising duplicate orders are also eliminated. An ideal inventory management system will raise an alert when you are raising duplicate purchase orders for a material that already has sufficient stock level.
Also, the stock management system will supply you with the necessary analytic reports like best selling products, peak selling periods, average order size, etc. which helps alter the purchase process for maximum profitability.
For a small scale business, the need is more pronounced as it cannot afford to pile up deadstock or deplete resources through wrong purchase decisions. To conclude, for any business handling stock in its routine operations, a good stock control system is a must-have.