Stock management is a very important thing in business operation. It is directly related to the core operation of the enterprise, if inventory management problems, then the enterprise will not be able to successfully complete the shipment, shipping, sales, after-sales and a series of links. However, due to its complexity and the large amount of work that needs to be done, many companies do not have a good grasp of inventory management, and it has a bad impact. In addition, many companies do not realize the importance of inventory management in their business process. In this article, we will give a brief introduction to inventory management, its fundamental purpose, its key points, and why stock management software Malaysia should be used.
What is stock management
Stock management refers to the management of the quantity of goods in the logistics process. Its purpose is to ensure that the stock is in the company’s assets and that the company can function properly. As the only tradable material in the company’s assets, the importance and necessity of inventory is self-evident. In a sense, inventory management is the key to the realization of “planned production” and “supply production”, “production and sales” and “capital operation”. In a sense, inventory management is an essential part of a company’s business activities such as “planning” and “supplying”, “production and sales” and “capital operation”, “human resource development” and “technological innovation”. The inventory management process is the process of planning, controlling, analyzing, processing and utilizing inventory items throughout the process. Inventory management is the process of planning, controlling, coordinating and controlling various inventory activities (materials, equipment, funds, etc.) and their relationships with each other through inventory planning and management activities. Inventory management can effectively prevent inventory backlog, promote rational allocation of inventory resources, reduce the risk of inventory loss, reduce inventory turnover time and extend inventory life.
Tips for stock management
Performing quantity counts: The most fundamental aspect of inventory management is to ensure that we are accurate and up-to-date in terms of inventory quantities. By counting inventory quantities, we can obtain key data such as our inventory turnover, material utilization rate and inventory turnover days, and can forecast inventory quantities. This will facilitate further business decisions. Inventory counting can be easily done with stock management software Malaysia. This will ensure that one works with minimal errors.
Focus on inventory turnover: Another indicator to focus on for inventory management in a business is inventory turnover, which is the ratio between the amount of revenue earned from the sale of a product or service per unit of time and the number of items in stock. Inventory turnover is an important indicator of the effectiveness of inventory management. The higher the inventory turnover rate, the faster the inventory turnover and the more profitable the inventory is; on the contrary, it means that the inventory level is low and the inventory turnover is slow. The lower the inventory turnover rate, the more serious the inventory loss and poor inventory profitability of the company. The trend of inventory turnover rate directly reflects the profitability, overall inventory turnover and liquidity of the company.
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