If your business currently carries stock, there are a number of advantages to having an effective and robust stocktaking system in place. From improving your cash flow and increasing profits to being able to provide your customers with products as and when they need and want them, here’s a quick rundown of some of the ways in which stocktaking can add value to your business.
Maximising stock availability
Most products are effected by seasonal demand; you won’t see us buying a winter coat in the height of summer, nor a pair of board shorts at Christmas. For that reason, it’s important to make sure that your products are available to customers as and when the demand is there. Stocktaking can play an active role in identifying buying trends and ensuring that you’re always one step ahead in meeting them.
Identifying areas of stock loss
Stock loss can happen for a number of reasons, depending on the industry you’re operating in. Understanding where stock is being lost in your processes, whether it is as a result of shoplifting in the retail sector or poor distribution channels when dealing in perishable goods, will allow you to improve on inefficiencies.
Once the cause and cost of stock lost are identified and remedied it can have a considerable impact on your bottom line profits.
Helping improve cash flow
There’s the old adage that ‘cash is king’ and every business certainly needs a level of cash flow in order to operate, no matter how high or low its expenses and run-rate are. Having a thorough knowledge of the stock levels you need to be carrying (particularly if you’re holding high levels of a certain item) can free up cash within your business which can then be allocated to other areas where stock is low and demand is high, or other areas of investment and growth.
Large amounts of distressed or expired stock
If you sell a product that is perishable or is constrained by a sell-by date for some other reason, then it’s vital that you understand your current stock levels, as anything that passes that date will be written off and weigh heavy on your profit margins.
Stocktaking can ensure that the levels of stock are kept at a level at which you can continue to meet demand, but also reduce wastage in end product or the supply chain.
As a business we’ve been working in the stocktaking industry for more than 30 years. We work with businesses of all sizes across a broad range of industries and no matter who we work with our ultimate goal is to help your business perform to its maximum potential.
For more information on our stocktaking services please give us a call on +44 (0)1637 874609 and we’ll be happy to answer any questions you may have.