A stocklist is a document that shows a comprehensive detail of all the products that a business has in stock. This is a dynamic list that is or should be updated as changes occur in the inventory.
There are several benefits for businesses in keeping a stocklist.
What are the Benefits of Creating a Stocklist for Businesses?
Businesses can avail of the following benefits by creating a stocklist:
Inventory Visibility
One of the major benefits of having a stocklist is that inventory is clear and visible to the company. It is crucial for businesses to know what’s in stock, how much quantity is there, which products are about to finish, etc.
This visibility is also helpful in retaining customers. When a customer places an order, the business can use a stocklist and immediately tell how many units of the item are in stock. Companies can then make decisions accordingly.
Performance Tracking
Performance tracking is an essential part of running a business. Companies should know how well the inventory turnover ratio is, which products are selling fast, and which ones are slow, etc.
This means that the product with a slow turnover rate can either be dropped or a new strategy can be applied to increase its sales.
Data-Driven Solutions
A list of items that are in stock is an important document with useful data. Companies can put this data to use in several ways and solve issues.
Suppose that a business deals in two products and one of them has higher sales than the other. A detailed analysis of sales data can help the business create strategies that speed up sales for this product.
Let’s now check out which components are essential in a stocklist.
Essential Components of a Stocklist
The following are the main components of a stocklist:
Name and SKU of the Product
The first component of a stocklist is the name and SKU number of the product. These two are very basic levels of information that separate one product from the other.
Not only for the business internally, but the names of products are essential for identity building in the minds of customers. This means that while SKUs may be for internal use in the stocklist, names are for internal and external use.
Product Description
On the stocklist, the product description is kept brief. In some cases, the product description only informs about the category of the product.
In other cases, there may be a small paragraph that tells the basic characteristics of the product. This mostly describes the product. Businesses should ensure that this description remains short and crisp.
Product Manufacturer Information
Stocklist also contains the manufacturer or supplier’s information from which the product was purchased. A link can be added here to the agreements and the past transactions with the respective manufacturer or supplier.
These details also help if the business wants to retrieve crucial information about the product. This way, businesses can keep the customers satisfied in case there is a query from their side.
Price
The price of products might be the most essential component of the stocklist. The price includes the per-unit price and the sales price.
Businesses need to know what price is set for which product. This way, they can make changes easily if required.
Number of Units in Stock
This is a highly important component for businesses. Companies should know the status of stock for every product. The number of available units tells how much inventory the business can commit to the customer.
This can help businesses prevent situations like overstocking or understocking.
Reorder Point
Reorder point is the indication that the inventory has to be replenished. When a product reaches the reorder point, it is time for the business to place an order for the product.
If a business is using an automated inventory management system, the system itself notifies that the reorder point is reached. The number of units that will be the reorder point for a product is also mentioned on the stocklist.
Using these components, there are multiple ways of creating a stocklist.
Ways to Create a Stocklist
There are three major ways of creating a stocklist:
Create Manually
The first way of creating a stocklist is to do it manually. For this, companies can use a pre-made template that has some or all of the above-mentioned components.
Once the staff member has the template, stock information can be added manually, and the stock list will be ready. A major drawback of this method is that there is a lot of room for human error. This method is also very time-consuming, depending on the amount of inventory.
Use Excel
The next method is to use Excel to create a stock list. Even though Excel also needs manual input, it is a better way to create records.
It creates the record in the form of spreadsheets. Excel stocklists are ideal for small businesses or startups. But for businesses looking to expand, there is a better option for them.
Use an Automated Inventory Management System
An automated inventory management system is perfect for creating stocklists for businesses, especially those with large inventories. For example, all the information in the stocklist doesn’t have to be manually entered.
By using a barcode scanner or RFID, one scan can enter all the data in the system automatically. This not only saves time but also reduces the chances of human error. Using an automated inventory management system can be an ideal way of creating stock lists.
Reasons Why Businesses Should Automate the Stocklist
Below are some of the reasons businesses should automate stock lists:
Increased Accuracy
As mentioned above, the manual method of stocklist creation and updation involves some level of human error. This can range from small errors to big ones that can impact business operations.
To avoid this, businesses should employ automated inventory management software. This improves the accuracy of the stocklist. This way, when the mistakes are reduced, the chances of financial loss are also reduced.
Time-Saving
Manually creating a stocklist is also a time-consuming task. While time consumption may not seem like a big issue, it can cause problems.
For example, the stocklist has to be updated regularly as the status of the product changes. If this doesn’t happen on time, the company will have inaccurate data. This inaccuracy can lead to issues like overstocking, understocking, and ultimately financial loss.
Stock Control
An accurate stocklist gives better control of stock in the hands of the company. This means that the company is in better control of the stock and, consequently, of its finances.
They can make flexible decisions if a complete and clear picture of inventory is available, which is provided by the stocklist. All this can be possible with an automated inventory management system.
Improved Data Reporting and Analysis
Knowing what’s in stock at all times is crucial for businesses to make informed decisions. A stocklist created and updated by an automated inventory management system can provide the required information.
This is because the stocklist is updated in real-time with automation. This real-time data can help businesses make timely and necessary decisions.
Conclusion
Businesses should ensure that their stock list is well-maintained. This gives them better control of their stock, which can help in making informed decisions. There are multiple ways of creating a stocklist. Businesses should choose a method that suits them the most.
