2. • Managing stock as a retailer is a vital task.
• Stock management grows more and more complicated with the increase of
sales volume and diversification of product assortments.
• Effective and efficient stock management methods are critical to reach an
optimum level in terms of stock quantity.
STOCK MANAGEMENT
3. POINTS TO CONSIDER
CONTROL AND TRACK
SYSTEM AND DESIGN
DOCUMENTATION
REPORTING
COORDINATION
PRECAUTION
FLEXIBILITY
ANALYSIS AND METHODS
4. CONTROL AND TRACK
- Hold stocks.
- Hold products in the store for the customers. In this case the stock accuary is
very important.
- Decrease to the minimum all problems and inventorize periodically.
- Orders should be followed up and physical stocks should be confirmed.
5. SYSTEM AND DESIGN
- Stock layout can be changed for campaign and discount situations which gain
quickness, that stock turnover raises.
- Active construction should be established and whole stores should take
action. In this situation the optimum layout should be arranged.
- New technologies provides lots of new tools which are “RFID” can check your
stock accuary instantly.
6. - Shelf system for products should be arranged and whole users should use it.
- Product stocks can be constituted like locational which can be feeded.
- Stocktaking should be done with handled terminal.
- Overstock or under stock situations, automatical transfer system can be
constituted, in this way you can do delivery plan and stock feeding according to
store sales.
- Stock status and order situations should be defined transparently.
SYSTEM AND DESIGN
7. DOCUMENTATION
- Documentation must be very efficient. Goods entrance and issue must be
controlled according to the procedures.
- Delete jobs which are based on experience only, and turned them into
systematic tasks.
- Stock accuary must be synchronized with system. System mistakes should be
detected, and resolved.
- Procedures for cancels and returns should be defined.
- Job descriptions should be fixed.
8. - Reports should be done for whole products category.
- The company should have efficient database and access to updated
knowledge about products.
- Data should be valid, and the updates should be automatic
REPORTING
9. COORDINATION
- Products which are sold rapidly and slowly should be analysed very well.
- Stock and order management should coordinate together.
- Amount of stock in the sales field and in the warehouse should be balanced.
- Warehouse of store feeding place should be updated and should support
sales.
10. PRECAUTION
- Amount of safety stock should be arranged for the unexpected times.
- Seasonal products should be defined so precaution for the future will be
more efficient.
- Supplier products should be counted and controlled for the compliance to
the set specifications in order to prevent likely errors.
11. - New products should register immediately and without errors.
- Whole employees should enter same door and check their bags.
- Check garbages to prevent steal product from trash.
- Alarm system should be updated.
- Sample products should be registered.
- Prevent illegal sales.
PRECAUTION (THEFT)
12. FLEXIBILITY
- Stock control system can be different for each stores. So product
Portfolio can be arranged for each stores too. The most important thing
is stock accuary and respond in time.
- Hot sellers quantity should be raised. The layout should be arranged
for outbound speed.
- Technology products should have life time.
- Company should give fast reaction when shock times come.
13. ANALYSIS AND METHODS
- Priorities should be chosen.
- You should find a solution for orders. When will you order or How
much will you order?
- Stocks should be tracked all the time and these two construction
should be synchronised.
- Stock management method should be optimum for the company.
14. PRE-ORDER LEVEL
- The amount of stock is known. When the stock comes some level company
should give an order again.
- This pre-order level takes a value between a minimum and a maximum
limit. But this method can not be used for all products. Because in real life
the demand is independent and is affected from lots of variables.
- Also campaigns and discounts can not give possibility to use this method
constantly. Generally it can be useful, but for different situations can be
implementable various methods.
15. - This analysis, examine the past values and help predict the future .
- It is always useful to forecast stochastic process.
- Ultimately the real datas are used to help find value which is the
nearest to future value.
- AR-MA, ARIMA, ARCH, VECM, GRANGER and GARCH these models
can be used to predict the future.
TIME SERIES ANALYSIS
16. TIME SERIES ANALYSIS
Amount of Stock
Demand
Scope Volume (m3)
Amount of Delivery
Costs
These variables can predict the nearest value for future.
After results, future plans can be constituted.
17. ABC ANALYSIS
- ABC analysis is an inventory categorization technique which prioritise
products.
- Holding valuable products will raise stock costs.
These products should be controlled frequently. If quantity raises, control
products will raise too.
- ABC analysis sorts and categorize products with sales values.
In this way the control point will be arranged.
- ABC analysis can be used for delivery quantity and frequency.
18. REGRESSION ANALYSIS
- Regression analysis can be used to find a relationship.
- Regression model should be established with suitable
variables.
- After analysis results which gives constants that will
forecast future values.
19. • It can be used for annual stock raising.
• Stock costs ratio can be predicted.
• Factors which are affecting amount of stocks can be formulize with logical
constants.
• After measured past values dimensions and delivery quantities that can
help to create future plans.
REGRESSION ANALYSIS
