We often talk about “small business stock control” and the importance of this to the success of any small to medium sized business that handles stock.
What is “small business stock control”?
There are some basics when it comes to small business stock control and it’s important to have a good understanding of these and how they relate to your specific business.
Types of stock
There are four main categories that stock will fall into. These are:
- raw materials
- work in progress
- finished goods
- consumables
Timing & quantities
Knowing what stock to buy, how much of each stock type you need without over-stocking or under-stocking and when to buy are all essential factors of small business stock control.
Costs
Taking into account the costs associated with holding your stock is also crucial. Holding stock for longer than your business needs to becomes an expensive exercise that will impact your bottom line. By calculating your turnover rate and performing regular stock takes, you will understand your optimal stock levels.
Some of the costs associated with holding stock include:
- insurance
- warehousing
- shipping
- financing
Find out more about Foresiight’s leading all in one business management software ProfiitPlus enabling small business stock control for clients throughout Australia.
