Seven practical controls that reduce stock confusion

Stock problems start small

Missing stock is rarely theft or disaster. It is usually a thousand small gaps: an item sold without a bill, a return not recorded, a delivery counted wrong. The goal of stock control is to make each of these gaps visible quickly.

The seven controls

These habits work with a notebook and work better with software.

• 1. Record every purchase on arrival, checked against the delivery.
• 2. Bill every sale, even small ones, so stock reduces with it.
• 3. Record returns and exchanges the same day.
• 4. Set a minimum level for fast-moving items and review low-stock alerts.
• 5. Count a small section of the store every week rather than everything once a year.
• 6. Give each user their own login so every change has a name.
• 7. Review slow-moving items monthly so cash is not tied up.

Why weekly counts beat yearly counts

A yearly count finds a large gap you can no longer explain. A weekly count of one section finds a small gap that someone still remembers. Over a few months, this habit reveals which process creates most of your differences.

Use margin, not only quantity

Knowing that you have fifty units is useful. Knowing that each unit earns a thin margin is more useful. Look at profit by item and category so that shelf space goes to products that earn it.

Let software do the arithmetic

The software's job is to apply the controls consistently: reduce stock with each sale, increase it with each purchase and show variances. Your team's job is to follow the process. When both do their part, stock confusion becomes the exception.