20 WAYS TO BE MORE PRODUCTIVE – Shrewd Stock Control
Productivity means higher output using your current resources, or achieving the same level of sales with less resource.
Fundamental to keeping your cashflow positive, gaining better purchasing power with your suppliers, and optimizing the stock usage to your advantage, is to ensure you have an accurate stock control system. This can be as simple or as extensive as you feel you can manage. The most expensive or highest rotation stock items must be managed so as never to fall below the minimum to allow the business to function, but not go over a maximum quantity so as to end up with all your cash on the shelves in the store room and not in the bank.
A few basic principles to follow are:
- build a good relationship with the supplier you feel provides best quality and service.
- know your suppliers order process and lead times which will dictate your minimum quantity requirements in your stock control system.
- Review your suppliers prices at least annually and compare with alternatives in the market, to ensure your are consistently achieving the best deals.
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My book “20 Ways to Be More Productive” offers easy tips, case studies and ways you can improve productivity and save money in every aspect of your business.