Are you looking for simple ways to better manage your stock?
If yes, you’re in luck! CFO On-Call has collated a useful 5-step guide to supercharge your stock management, cash flow and profit.
Think of stock as dollar bills piled up on your stockroom floor. To reduce the money tied up in stock, you need to manage it better.
In our free eBook, ‘5 Steps to Supercharge Your Stock Management, Cash Flow and Profit’, we share how the following 5 steps will help you to improve your stock management system and improve your cash flow in the process.
Step 1 – Getting The Balance Right
You need to have enough stock to deliver to customers’ needs, but not too much that it consumes precious cash in your business.
Regular stock takes help you to know how much stock you have and where it is, so you don’t accidentally over-order or lose stock. Focus on security of stock, which in turn helps to avoid wastage and theft.
Step 2 – Cost and Selling Prices
Buying prices need careful attention and constant monitoring, so you maintain your profit margin.
Step 3 – Stock Management System
Handling stock efficiently is the key. Considering which stock location is best for your business – be it on site, outsourced or consignment – can make a big difference in profitability. It’s important to analyse and compare the cost of each option.
Factors like measurement, labelling, systems, reporting, picking, packing and distribution all have an impact on efficiency and cost as well, and should be taken into consideration.
Step 4 – Cash Flow Impact
Good stock management has a big impact on cash flow.
Slow-moving or obsolete stock is dollar bills piled up on the stockroom floor – you need to get rid of obsolete stock to improve cash flow.
Step 5 – Profit Impact
Good stock management has a big impact on profit. Having just the right amount at the right time will ensure you earn a good profit!
Want to learn more? Our free eBook ‘5 Steps to Supercharge Your Stock Management, Cash Flow and Profit’ looks at each step in further detail.
Download our free eBook ‘5 Steps to Supercharge Your Stock Management, Cash Flow and Profit’ and discover useful tips for managing your stock.