Stock Management (How much back Stock is left)

Stock is a critical element to most businesses, but different functions within a business have different perceptions of how much inventory/ stock there should be.

Sales tend to want large volumes of stock to guarantee service; finance want the inventory/stock minimized to reduce working capital, and operations want sufficient raw material to keep equipment operating efficiently.

 In addition, all inventories need to be of the right quality, positioned in the right place, at the right time, and in the right quantity. The difficult task of inventory management is to balance and satisfy all of these needs.

There are proven methodologies and formulae that can optimize the level of inventory against all of the service, working capital and equipment utilization criteria. These policies can be developed and introduced from all functions; they can demonstrate clear rationale and logic behind the resulting inventory levels, and they can balance and satisfy all of the needs of the business.

Like all the other business Leaflet distribution also needs to pay attention to their inventory/stock. Problems like stock outs and lost sales are common while warehouse are bulging with inventory. On-hand and available-for-sale quantities in their computer systems aren’t accurate. The return on investment from inventory is not satisfactory. To achieve an optimum utilization of the resources available for the better performance and profit attainment to the company they need to apply an efficient stock management policies and methodology.