Inventories are related to all the goods involved in the operating cycle of a company either to be consumed or to be sold as-is or at the end of the production process. Good stock management will help meet future needs.
Good stock management is a factor of flexibility for the company. Indeed, stocks represent a financial burden and immobilization of capital.
Inventory management within a company concerns the following positions:
- The stock of goods: resale of goods at a profit, without prior transformation.
- The stock of raw materials: products purchased for processing.
- The stock of semi-finished products: these are products in the process of being manufactured.
- The stock of finished products: once the processing of raw materials is completed, the product is ready to be sold.
- The packaging stock: this is empty packaging such as crates, pallets, etc.
The loss of merchandise is a common problem in the SME that directly affects the profitability of the company. Below we will analyse the main causes of this problem and present some techniques to reduce the risk of these losses occurring.
Loss of merchandise can be attributed to fraudulent and non-fraudulent activities such as the following:
- Employee Theft
- Fake Sales
- Administrative Errors
How can we avoid it? Although the loss of merchandise is something that can hardly be eradicated 100%, there are a series of measures that we can implement to reduce the risk of it occurring.
- Recruitment: Be sure to ask for references and conduct proper employment research.
- Video Cameras: Install monitoring cameras in areas where merchandise is handled
- Separation of tasks: Separate the billing and merchandise delivery area so that it does not depend on the same person
- Audits: Lean on an administrative system for inventory control that allows you to perform audits sporadically.
Managing and controlling your inventory through the help of experts of CAC can help you a lot to reduce administration errors and, on the other hand, to establish controls to detect fraudulent activities.
Inventory Management Company allows you to keep track of all your business processes including inventory control.
Through the receipt and storage of goods, their rotation and their availability, the linear functioning of the processes, the efficiency of the production cycles, and – fundamentally – customer satisfaction are guaranteed. The issue of inventory management can also benefit enormously from consulting experts in the field, such as CAC.
Inventory is all industrial equipment and goods that are stored, whether intended to complete the production process or for sale to the customer. For an industrialist, it is necessary to have the raw material and the elements essential to the manufacture of the products ordered to meet his delivery deadlines. Good inventory management comes down to minimizing costs, avoiding breakages, overstocking, and accidents.
The objective of inventory management is to minimize the financial immobilized amount of the inventory, to ensure its availability, to limit losses due to the inventory.
And this is why we recommend you contact the experienced team of CAC and ensure good management of your inventory to satisfy the future needs of your business.