Give three reasons for controlling stock
1) Inventory management: Controlling stock enables businesses to effectively manage their inventory levels. By keeping track of stock levels and implementing stock control measures, companies can ensure that they have sufficient stock to meet customer demand. This prevents the risk of stockouts, which can lead to loss of sales and customer dissatisfaction.
2) Cost control: Controlling stock helps businesses to minimize costs associated with holding and managing inventory. By monitoring stock levels, companies can avoid overstocking, which can tie up capital and lead to increased storage and handling costs. Additionally, stock control measures such as implementing just-in-time (JIT) inventory systems can help reduce carrying costs of stock, including obsolescence and spoilage.
3) Demand forecasting and planning: By controlling stock, businesses can gain insights into customer demand patterns and trends. This helps in accurate demand forecasting and planning, which in turn facilitates effective production scheduling and procurement. By aligning stock levels with anticipated demand, companies can optimize their supply chain, reduce lead times, and enhance customer service levels.