Running out of your best seller loses sales. Sitting on stock that does not move ties up cash. Good stock control is mostly a few habits done every week, plus the right tool once the list grows too long to keep in your head.
Know what you have
Start with a count. Count everything once, record it in one place and give each product a clear name or code. From then on, change the number every time you receive or sell stock. A list that is only updated once a month is a guess.
Set a reorder level for fast sellers
A reorder level is the quantity at which you order more. Work it out from how much you sell while your supplier delivers, plus a small buffer. If you sell ten a week and delivery takes two weeks, reorder when you are down to about twenty-five.
Count a little, often
Instead of one big count a year, count a few products every week, starting with the fastest sellers and the most expensive items. Differences show up early, while you can still find the reason.
Watch for the quiet problems
- Stock that has not sold for months
- Damaged or expired items that are still counted
- Theft and mistakes, which show up as differences between the count and the records
- The same item recorded under two different names
When software is worth it
A spreadsheet is fine for a small range in one place. Move to a stock system when you have hundreds of products, more than one location, several people updating stock, or you sell online as well as in store.
Barcode scanning speeds up receiving and counting, and linking stock to your till or online store removes the retyping.