Stock Control Advice Needed

[JosieR]

My name is Josie and I at the infancy stage of opening a retail outlet, selling eco-friendly products, in Hastings, East Sussex and I'm here to find help and advice in running my business. My first question is - what is the easiest system in keeping stock control?

[Indizine]

Hi Josie

Welcome to A1

Can you start a new thread with your question in the relevant business forum for that topic so we don't go off topic in this introduction thread.

[seanstevens]

Hello Josie, Welcome to the forum.

[openmind]

As this is more a general business question rather than intro I'll move it so you get a better response...

[LOS Design UK]

Ahh, stock control. Me old job...this takes me back.

Right, first off, let's see what you know.

What is your current understanding of stock control and how important is it to you.

Regards
Daren.

[JosieR]

Hi Darren,

Thank you for your reply. At the moment I am keeping a record of goods received in on a spreadsheet and making a note of what has sold, then I deduct these items from my spreadsheet.....easy. But, there's always a but.....the shop is not open yet and I'm due to start trading on the 7th. Should I just have a book by the till and write everything down that I sell and continue deducting and adding stock on the spreadsheet? It's important to me to know just how much value I have in current stock and also to keep tabs on what is running low and needs reordering. Is there an easier system than this? Regards Josie

[Paul Norman]

The answer to your question will depend on resource and sales volumes.

However, as a general note, stock control is vital in a business such as yours, and I would manage it carefully. You need to know which lines are selling, and which are not. Which have better margins. And which stock items are becoming too attached to the shelves. You need to know at any one point exactly how much of each thing you have.

There are a number of simple stock control systems on the market at manageable cost, but if in the short term cash is too short to commit to one, I would just ensure your spreadsheet is very up todate at the close of each day's trading.

[skeeter]

Fifo for for perishables.
Lifo for non perishables.

These are the easiest two.

[LOS Design UK]

Fifo for for perishables.
Lifo for non perishables.

These are the easiest two.

Skeeter, they are not a stock control system, that is a stock rotation usage in place for date restricted stock such as food, batteries etc.

I agree with Paul, build a spreadsheet that will measure sales and can do some simple stock re-order calculations (stock holding not date or value) and once you have this in place, use a P.I. on your top 10-25% (highest value and sell thru rate) initially to keep an eye on stock accuracy. To control stock, this is the way to start IMHO.

I do, however, split margins and stock control into two totally different areas. Stock accuracy will drive your stock value. Your selling points and margins would be assumed efficient prior to entering the stock control cycle in my instance. BUT, yes Paul, they do need to be maintained.

BUT implement the PI AFTER you have an accurate stock count of ALL your lines.

Once this is in place, you will then have the data you need AND time to evaluate what you need to move forward

It really does depend on your sales flow, stock movement and accounting requirements as to which direction you go in.

Feel free to shout if you need clarification.

Regards
Daren

(p.i. = perpetual inventory...)

[marketing difference]

Dependent on your budget, invest in an EPOS (electronic point of sale) system. That you will you will be able to track sales and stock levels accurately and make forecast of future demand.

If the budget isn't there then the spreadsheet option sounds good.