Meaning of stock control

Meaning of stock control

Stock Control is the process of making sure that the correct level of stock is maintained, to be able to meet demand while keeping the costs of holding stock to a minimum

Inventory management is a strategic area in logistics operation and has an impact on efficiency and effectiveness of the overall supply chain system. As the cycles of production and consumption never match, goods have to be kept in stock to get over the uncertainties in demand and supply. However, higher inventory levels will affect the bottom line of the company. This is a high risk and high impact area, which has to strike a balance between the two polemic goals of lower cost and a higher level of customer service. Companies block sizable funds in their inventories, which would otherwise have been invested in more productive areas.



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