Why Stock Taking Important for Business?

Madison Leigh Gerhard is a student of psychology who has acquired experience in retail services. One of her jobs was as a sales associate and fashion consultant for Bee Boutique, a New Jersey-based women’s attire business in Sea Girt. Part of Madison Leigh Gerhard’s responsibilities there included enhancing customer relations, pricing merchandise and stock taking.

Also known as inventory control or stock management, a stock take shows a business or store how much of their products are in stock and how efficient their tracking process is. Regularly done, it allows the business to maintain correct quantities and have them at the right place, so that they can replenish showrooms and deliver to customers on time, but not take up expensive warehouse space for too long. It ensures that the business is not unnecessarily tying up capital and that precautions are in place in the event of production and supply chain hitches.

Regular stock management and records provide trends that help decision-makers in the company to implement data-backed improvements. They will, for example, show which products are doing well and which may need less investment, changing up elements in the supply chain accordingly. Counting and verifying stock also ties into the company’s accounting and budgetary concerns; apart from regulating changing costs in terms of staff, technology and space, stock taking includes reviewing and updating price lists of existing and upcoming inventory against previous numbers.