If your business involves making a product, it’s very important to carefully manage your stock at all times.
Your stock includes:
- Raw materials
- Products bought for re-sale but not yet sold
- Products already in production but not yet complete
- Products already made but not sold
- Office stationery
The two big mistakes that businesses make with stock are either:
- Running out of stock and not meeting their production deadlines as a result, or
- Carrying too much stock. This can work out expensive if all the stock is not sold.
The best way of avoiding any stock problems like these is to plan, plan, plan. Think ahead to when your busy times will be and have extra stock available at these times.
Likewise, try to anticipate when things will get quiet and plan to order in / make less stock at this time.