Stock control software is one of the most important assets for a business that sells stock of any kind, especially perishable stocks like food. Since stock is one of the largest investments for most businesses, losing money through waste can be a devastating blow if not controlled. Through effective use of this software, waste can be reduced or even eliminated entirely.
Amount of Stock
Many businesses are large, and though the majority of employees can keep up with the stock numbers, it is common for merchandise to get lost. When the stock is lost, then more has to be ordered to make up for what the employees cannot find. This not only wastes money for getting the extra stock, but if the item is perishable, the extra stock that was lost will most likely go bad, meaning the extra cost cannot even be recovered. Stock control software will ensure this does not happen, because it will constantly display the accurate amount of items in the store. This ensures that employees will not order anything else, because they will know that the inventory is somewhere, they just need to find it.
Ordering the Correct Amounts
Some products have a stable demand, and it will be easy to know when you have to order more when the supplies are getting low. If there is a popular product, or a product that has an unstable demand, then this becomes much harder, because if you order too soon then you will waste profits, and if you order too late your inventory may go bad or it may be stuck on shelves. With stock control software, you receive an algorithm that will show you when inventory needs to be ordered based on many complex factors. This will show you, mathematically, when is the best time to order new inventory. By ordering at the last second, and ordering the proper amount, you can avoid waste while keeping customers happy.
Real-Time Inventory Tracking
Another way that stock control software helps reduce waste is through real-time tracking. Real-time tracking means that the inventory numbers are updated as soon as they are scanned, meaning there is no update lag between scanning and the system reflecting the new inventory numbers. This reduces waste by reducing inventory number confusion. If the system updated slowly, then employees may order more products or the system may say it is time to order more, even though there are really enough items in the store.
Few businesses can survive without inventory control software, because waste is a very real and very devastating problem. This will keep businesses from unnecessarily losing profits, whether by keep track of how many items are in the store, or by telling employees when products should really be ordered.
Terry Jones works in the retail industry where he oversees stock levels of food and drink items. The use of stock control software is an integral part of his role and Terry sees it as a challenge to ensure that through it he can minimises wastage. This article was written by a guest author. Would you like to write for us?