What is stock

The stock is a supply of goods in inventory.

The stock in a retail outlet is a very important factor, indeed it is necessary to ensure that there is a quantity of goods that satisfies all customers.

If the goods in stock are not enough to satisfy everyone and run out sooner than they should, an out of stock situation occurs, which is a shortage.

"Stockists" are true professionals who assess how the material should be sold and place their bid to acquire the entire lot.

Stock Management

The management of stock involves operations that manage the inventory of goods in a warehouse.

Unlike the inventory, which is a description of every single item existing in the warehouse, managing the stock implies  maintenance of a certain quota of materials that ensures the proper functioning of the production and distribution processes.

In practice, inventory management means control and optimization of goods.

The investments in inventories of a company represent an important part in the management phase, indeed, decisions on inventories have a significant impact on service costs provided to the customer.

Inventory Management Goals

When stocks in the warehouse are managed effectively, fundamental objectives can be achieved.

To ensure this happens the necessary actions to be taken are:

• Adjusting stock according to demand: it is important to forecast demand and manage inventories to keep stock at optimal levels. Some companies make predictions based on the seasonality of the products they manage;
• Ensure optimal service: the warehouse must always have the necessary stock on hand to meet every request and guarantee an excellent level of service;
• Reduce inventory and cut costs: there are two strategies to cut costs related to inventory, cross docking or just in time. Cross docking is the unloading of materials directly from outbound trucks, trailers, or railcars with minimal or no storage. Just in time, on the other hand, is a production system that manufactures products based on market demand.

The variability of customer demand is very important for managing inventories effectively, because depending on variations, a different stock must be maintained for each request.

A change in consumer habits can represent a real revolution for a warehouse, where every change in trend shifts large segments of customers towards a specific product or brand.

Indeed, suppliers must adapt quickly to the myriad of codes they receive from their clients.