Transparent, practical stock management procedures are vital to any business that processes even small amounts of physical product. Inadequate stock management can equal as much as 10% of the total spend on parts.
Common symptoms of a subpar stock management process include:
- Labour wasted searching for parts that are not located where they should be.
- An inventory that has been gathering dust and is consuming valuable space.
- Computerised records that bear no resemblance to reality.
- A backlog of unprocessed goods-in receipts.
Poor stock management procedures have obvious financial consequences, including cash tied up in inventory that has been over-ordered, and inventory that could be sold but is invisible to the sales team because it has not been recorded on stock systems.
However, there are other implications. Mismatches between records and reality can build a culture of mistrust, with management suspecting employees of theft. Customers, and therefore your reputation, suffer too – goods may be delivered late, or staff may turn up for service assignments without the correct equipment.
While there are some sophisticated solutions available, such as barcode technology, simple can be suitable. It is most important to use a methodology that is appropriate for your business.
Underlying any strong stock control system is good organisation and discipline, and a management-led culture that emphasises its importance. Whether these things are supported by paper-based systems or barcode scanners is somewhat incidental – both would fail without the right foundations to back them up.
WLP has helped clients with all aspects of stock management, from putting the building blocks in place to implementing technological solutions. Benefits include:
- Providing management teams with trustworthy data that enables meaningful measures of performance.
- Enhanced customer experience.
- Better margins.
If you would like help with your stock management, contact us at enquiry@w-l-p.co.uk