What are the best practices for stock control?

The best practices for stock control include accurate forecasting, regular auditing, first-in-first-out approach, and efficient supplier relationships.

Accurate forecasting is a crucial aspect of stock control. It involves predicting the demand for your products accurately to avoid overstocking or understocking. Overstocking can lead to increased storage costs and potential wastage, especially for perishable goods. Understocking, on the other hand, can lead to missed sales opportunities and customer dissatisfaction. Therefore, businesses should use historical sales data, market trends, and any upcoming promotions or events to forecast demand accurately.

Regular auditing is another best practice for stock control. This involves regularly checking your physical inventory to ensure it matches your inventory records. Discrepancies can occur due to theft, damage, or administrative errors, and regular auditing can help identify and rectify these issues promptly. There are various methods of auditing, including physical counts, spot checking, and cycle counting, and businesses should choose the most suitable method based on their size and the nature of their products.

The first-in-first-out (FIFO) approach is a commonly used method in stock control. This means that the oldest stock (first-in) gets sold first (first-out), not the newest stock. This is particularly important for perishable goods to prevent spoilage, but it's also beneficial for non-perishable goods to prevent obsolescence.

Maintaining efficient supplier relationships is also a key part of stock control. This involves communicating effectively with your suppliers to ensure they understand your needs and can meet your demand. It also involves negotiating favourable terms, such as bulk discounts or extended payment terms, to help manage your stock costs. Furthermore, having reliable suppliers means you can keep lower stock levels, reducing your storage costs and risk of obsolescence.

In conclusion, effective stock control requires a combination of accurate forecasting, regular auditing, the FIFO approach, and efficient supplier relationships. By implementing these best practices, businesses can minimise their stock costs, maximise their sales opportunities, and ultimately improve their profitability.