Efficient small business stock control is one of the most important aspects of any small business that handles stock but it can make or break small business retailers. Business Management software Australia (or ERP software) enables small business stock control for busy retailers from stock management for tool stores to stock management for auto spare parts and everything in between. But how should retailers be leveraging their ERP software for Australian small business to better control stock? Here are some recommended techniques to help with stock management.
Stock value
As a business, you cannot determine your financial position, unless you know the value of your stock on hand. There are multiple methods for calculating the value of stock. The first-in first-out method provide an accurate representation of the stock you have on hand but it is dependent on the movement of stock in the order it was purchased. For most retail businesses this isn’t realistic. The last-in last-out method has similar limitations. Instead, calculate stock by average cost which provide the average cost of an item based on the quantity you have in stock.
Accurate tracking
When making projections on stock requirements don’t simply consider how much stock you can fit into your available warehouse space. Consider how much of each product you have sold in previous months and whether a product is seasonal and only store what you need. Storing excess stock is costly and not selling the stock can be even more so.
Know your best-sellers
An extension of the above point, accurate tracking will enable businesses to understand their best-selling products. The products that move quickly and that need to be allocated valuable space in storage facilities. Knowing your best-sellers will also improve customer satisfaction and repeat purchases.
Intelligent reporting
It’s important that your stock management software has the functionality to report on potential errors before they happen. Ensure that your small business stock control software can report on negative stock quantities which will allow you to identify where items are being sold using incorrect codes or and therefore potentially at the wrong price.
Stock optimisation
This one is crucial for small business stock control but what exactly is stock optimisation? To answer this it’s more useful to look at the methods that will provide stock optimisation. These include:
- Carrying out regular inventory audits (or stock takes)
- Understanding your inventory turnover ratio
- Updating stock control policies
All of these can be managed with the right Business Management software Australia software and deliver small business stock control regardless of your industry.
For further information on how to achieve small business stock control contact our team of experts today and request a FREE DEMO.