stockcontrol

Stock control, or inventory control, is the management of a business's stock and materials to balance availability with cost. It covers the planning, tracking, and auditing of items held for sale, production, or internal use, across manufacturers, wholesalers, retailers, and service providers.

Core concepts include setting target stock levels (minimum, maximum, and safety stock), maintaining inventory accuracy, and choosing between perpetual (continuous) and periodic (discrete) recording. Techniques such as ABC analysis classify items by turnover, while FIFO or LIFO govern how items are valued or used.

Key processes are forecasting demand, procuring goods, receiving and storing stock, recording movements, picking and packing orders, and handling returns. Regular cycle counts or annual audits verify stock accuracy, and reorder points tied to lead times trigger replenishment to reduce stockouts.

Technology supports stock control through inventory management software, ERP systems, barcode scanning, and increasingly RFID. Methods like Economic Order Quantity (EOQ) and safety stock calculations help determine optimal order sizes and buffer levels.

Common metrics include stock turnover, days of inventory on hand, stockout rate, service level, and carrying cost. Good stock control reduces carrying costs and improves cash flow and customer service, but excessive stock raises obsolescence risk and ties up capital.

Effective stock control requires data accuracy, integration with purchasing and sales, regular audits, and staff training. It should align with overall operations strategy and be scalable to growth and demand variability.