Introduction to Inventory Control
Regardless of the branch of the company, every entrepreneur must pay attention to some administrative activities that, if properly worked, can directly influence the profit of any business - and even avoid the unpleasant (and common) losses, usually caused by bad management. After all, who has never heard of a company that had everything to succeed, but ended up failing mismanagement?
Prospecting customers is one of the important steps for increasing your company's sales, but you have to take into account many other arguments for business success. Having a prestigious company still demands many other administrative factors ranging from sale to production. Understand how control the entry and exit of products of your company, for example, is essential if profitability is to be assured: having complete inventory control means you do not waste unnecessary money and invest only where you need it.
If your business segment requires many products to be marketed at one time, it is stock management, the kick-off for the company to have full control of its costs. This is because, by knowing how to store your products well, you can better serve your customers, more effectively and cautiously, so that he does not look for another company because you do not have the product desired by him at the moment .
Problems with missing inventory management can be fatal to your business, since it directly influences your expenses. Having a stock control, for example, you avoid the risk of losing goods by expiration date (if you buy more than you should) and lose sales opportunity (in case you buy less merchandise than you are looking for).
What many entrepreneurs sin on this subject is how much they attempt to carry out manual control. The difficulty of using complex means, in addition to lack of time, influence them so that they can not perform a good inventory management. But there are simple and practical alternatives to inventory control accurate, which is through Excel spreadsheets. It allows you to access, in a single document, the quantity of materials in the stock, as well as the new orders and the total value of the products stored. That is, the worksheet is nothing more than a true business "diagnosis", where you can view the production and sales stages from the following steps:
How to do Inventory Control in Excel
Step 1 - Product and Supplier Registration
This is the first record you need to make when thinking about making good inventory control. To begin with, you must record the product name, your initial stock, what the minimum stock (the least amount for you to make a new order for that item), and the cost of that entry.
Example: if your company is a building materials store, it is interesting that you control the quantity of products that you already have of a certain type and what is the minimum quantity so that your establishment is not lacking and, at the same time meet your customers' demand. Problems such as the lack of frequently sought products in your company would be easily avoided by conducting an inventory. See this record below:
As I said earlier, you also can not forget to keep a record of all your suppliers. If necessary, make average delivery time observations and which products to request from which supplier according to price, quality and ease of payment negotiation.
Step 2 - Product Entry and Exit Entries in Stock
This is where the changes that occur in your inventory are recorded. Every time you make a sale or make a purchase you must note the amount of entry or exit of each item to keep a good control and know exactly how your stock is. Here's an example of how this inventory control can be done in Excel:
Example: In this step, it is important to fill the spreadsheet with as much data and information as you have in real time, so you can efficiently track the stock generated and some other information from your inventory:
Step 3 - General and Individual Stock Control
Here you will do an analysis of information about your current inventory: whether it is with an adequate amount for sale or if it is at a minimum. In this step it is also possible to know the total stock value, based on the unit value of each product.
In a general review, you can see a snapshot of your inventory control and know information such as current inventory, status of each item (whether the quantity of items is comfortable, moderate, or whether it is time to place a new order), outputs, as well as total spending on products. Look:
Example: Using the monthly stock performance information, you can perform a seasonal analysis. If you realize that in a particular month you sell more, and therefore you need to make a bigger replacement at that time; and in another month the sales are smaller, therefore it is not necessary to acquire large quantity of products to not spare. With this sales performance indicator, it allows the entrepreneur to seek solutions to improve revenues and generate profits in periods of low sales.
In addition to the overall analysis, it is also worthwhile to do individual reviews for items that are highly relevant to your sales and inventory. In this view, you get a picture of the product for each month of the year and even see its ABC rating:
Step 4 - Visual Analysis of Inventory Control
Here is made the graphical analysis of monthly stock. You can view the values of items in stock each month. Knowing the quantity of items you can make a better control and know if there is space in your inventory for new shipments.
In addition, it is also worthwhile comparing products above and below minimum inventory and receiving automatic alerts accordingly.
If you liked the post, do not miss our 3.0 Inventory Control Worksheet.