Stock loss control is something that should be front-of-mind for anyone in the wholesale distribution business. In the simplest of terms, stock loss control involves having greater oversight over one’s stock, designing the necessary systems to identify the causes of shrinkages and implementing an effective action plan to minimize the risks associated with any stock control losses. Some refer to it as “internal control” or even as an accounting system set up to safeguard assets. Let’s take a look at why stock loss control is so important as well as what’s involved in developing an effective system.
What is Stock Loss Control & Why Is It Important?
Understanding what you have, where it is in your warehouse, and when stock is going in and out can help lower costs, speed up fulfilment, and prevent fraud. Your company may also rely on inventory control systems to assess your current assets, balance your accounts, and provide financial reporting.
Stock loss control is also important to maintaining the right balance of stock in your warehouses. You don’t want to lose a sale because you didn’t have enough inventories to fill an order. Constant inventory issues (frequent backorders, etc.) can drive customers to other suppliers entirely. The bottom line? When you have control over your inventory, you’re able to provide better customer service. It will also help you get a better, more real-time understanding of what’s selling and what isn’t.
But what if you don’t have the capacity to carry out internal stock control systems and audits? Then it’s time to consider outsourcing this vital process to professionals.
The Benefits of Outsourcing Stock Loss Control
Benefits of Outsourcing Stock Loss Control – Improve Overall Process Efficiency
Every manufacturer becomes more competitive when they can focus on their core business. Efficiencies gained from outsourcing inventory management allow a company to:
- Maintain focus on core competencies
- Avoid outlying, resource-intensive tasks
- Reduce or eliminate the presence of theft and syndicates, either within the company or external threats.
Benefits of Outsourcing Stock Loss Control – Free Up Resources
Every company has a limited pool of capital, both monetary and personnel. Tying up either of these reduces efficiency. Freeing up capital as management time and resources makes sense because this can:
- Trim management administration costs
- Reduce sourcing and shortage issues
- Minimize management distractions
- Reduce the chance of disciplinary hearings as a result of internal theft.