Stock Loss Control – What Does It Entail?
Stock control should be an important factor to consider for any company holding large amounts of stock at any given time. Proper control procedures need to be in place to ensure that employees and customers do not walk away with your inventory. Security measures need to be implemented to prevent this.
Mantis Security is able to design the necessary systems to identify the causes of shrinkages and implement an effective action plan to minimize the risks associated with any stock control losses.
What Does Stock Loss Control Entail?
“Every business suffers from stock control and inventory management problems. “Shrinkage” accounts for a considerable amount of total sales that includes theft by customers or employees, or staff and administrative errors. And if you are trying to grow your business, keeping track on stock levels the way you manage your inventory can influence your growth in terms of profit or loss and also your customer satisfaction ability.
Key Goals Of Inventory Management Systems
- System should be able to tell real-time location of your inventory.
- System should be able to tell and update changes in your inventory.
- It should involve a plan for how much inventory to order and keep, and when to re-order as well.
Reduce Shrinkage In The Stock Control Process
Check All Stocks Inwards
Your first focus should be checking on whether the delivered stock is exactly what you ordered from your supplier. Sometimes suppliers get stock orders incorrectly packed and while assuming you have correct numbers you add the inventory to your shelves. In these cases when you receive orders you are liable to get short stocked and thus lose your sales and your credibility as well. In another case you might actually have more stock than needed and you won’t even know when to reduce prices or not order anymore of it.
Store Your Stocks Wisely
It is easier to place your stock wherever it fits. But the easy way isn’t always better, as this can make it harder to track the product. And if you have similar products with similar packaging (could differ in quantity or have unnoticeable difference) then while in a hurry, you or your staff may make a mistake and likely cause errors.
Create Clear Labels For Each Product
Each product in your stock must have a clear label on it with product number, quantity, basic description including vendor name and other important details. Labelling makes identifying the product much easier. It makes tracking easier as you are always able to know about the box’s contents with its exact quantity. This can also be done using barcodes instead of labels.
Keep Track Of Expiry Dates
If you offer expired products, then you will obviously be liable for hefty fines if the product gets delivered to the customers. So, it is important for you to keep track on the best before dates of each product in line so that you can clear the stock before it gets outdated by either lowering the price or any other way. It is also important to check the best before dates of outgoing orders before packing.
Don’t Compound Problems
If you have made a wrong delivery, then when delivering another product instead make sure to amend the stock levels for both the products. At times, it may seem obvious, but while in all the hassle of running the business, this can easily be overlooked.
Set Threshold Stock Levels
Every business has different peak times when the sales increase or decrease with large differences and also each supplier also has their own different lead times. So, if you want to keep your business going and want to escape out of stock situations then you should be able to establish how long you can restock normally and forecast the amount of time the minimum stock level will get exhausted.
Manage Returns Effectively
One of the biggest issue surfaces while handling the returns mainly in fashion and electronics markets. If you get any delivered stock returned when they are discovered defective, then you have to make sure that your stock levels don’t get adjusted upwards and make sure to account for it with your suppliers.
Always Keep An Eye On Stocks
You should always keep track of your stock in real-time. If you have made or are encountered with an error, then it’s better to point it before taking the order. If not, then you will have to spend time contacting them if an error is spotted later or restocking if you haven’t and in the worst case you fail to deliver and lose your sale with the credibility of your brand.
Keep Priorities In Check
Keeping track of inventories altogether is a time consuming and exhausting task. So, you should keep your priority straight. You should set management operations i.e. forecasting, stock-level check, and reordering of these products as priority. Then make next best-selling products next on your list. You can focus on stock tracking accordingly for rest of your stock too.
Consider An Automated Solution
And then you can always consider using automated solutions for inventory management and controlling of your stock levels. These solutions provide you with a number of tools for assisting you with proper and efficient management of your inventory and keeping you from time consuming but important processes done manually. These can also be a big factor in reducing errors and increasing your productivity. You can also use cloud-based automated solutions for inventory management so that you are always available from wherever you are and whenever needed. These can have a considerable impact on your bottom line and allow you to grow faster.
All opinions expressed in this article are not the onus of the publisher nor supplier.