What is stock management and what are its objectives?

What is stock management and what are its objectives?

06/23/2021 - Pricing strategy

Stock management is a key step to maintain a healthy warehouse. Furthermore, it helps you to correctly meet your business strategies. What implications do e-commerce stock management have? Why is it key to count on a sales prediction software to control the stock of your store? Learn to manage your online catalog with the keys we give you.

Why is stock management necessary? 

Stock management is the strategic study of the necessities of your warehouse facing the market’s sale forecast. This involves monitoring stock, inputs produced in your warehouse, as well as the predictions of necessities to face seasonal stages in which you can see the peaks and falls in demand.  

The tasks of stock management are a fundamental part of the development of a business because they affect the base of the entire structure: the sales. Without reliable product stocks, any other element of strategy won’t make sense.  

3 objectives of stock management 

  1. Prevent stock outs. Getting to know the purchase recurrence of every product and its seasonality allows for the avoidance of stock outs and sale losses from depleted units. Making a correct sales forecast is known as demand forecasting, and it is essential so that the warehouse does not affect the sales and vice versa.  
  2. Reduce structural costs. The stock management of your warehouse allows you to get to know firsthand what are the vanishing points where you lose investment, whether it’s for its placement, low output, or showy movement, for example.  Furthermore, it allows you to get to know which security stock you should have so that you don’t lose units if you spend more in excessive product storage. 
  3. Optimize the sales strategy. Correctly managing your stock will open doors for you to have a better maintenance cost ratio allowing  you to output products that you have in large quantities with more aggressive sale strategies. In addition, you can take advantage of this knowledge to evade batches of obsolete units and sell them on time.

How to manage the stock of your e-commerce? 

To carry out stock management it is essential that you have all the firsthand data that affects the treatment of your products of your warehouse. This implies from your location and categorization until the traceability when sales are produced, or its replacement in a concreate number of unites to always maintain a solvent stock. 

With the increase in references that contain the catalogs of online stores, counting on a tool for stock management is more necessary. Especially regarding forecast calculations. The demand forecasting software Reactev is  the solution that you need to carry out your stock management with all the security, generating alerts and updating data with every departure from the warehouse.

Category: Pricing strategy

Tags: competition, ecommerce

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