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The merchant’s guide

Inventory management

To be successful, a company must have the right stock, in the right place, at the right time and at the best cost. Regardless of its size, it is a difficult equation. In fact, the challenge of good inventory management is to avoid stock outs, while having enough space in your storage area to gain efficiency, and at the same time reduce the immobilized cash. How do you get there? Discover with Alfa Cybernetics the different methods to gain efficiency in the rotation of your stocks and the management of your supplies.

The essential concepts to know in inventory management

Before understanding how to optimize your inventory management, it is important to clearly define what we are talking about.

Stock definition

When we talk about a company’s stocks, we are essentially talking about a part of its assets made up of:

  • goods acquired and intended for sale;
  • raw materials dedicated to manufacturing;
  • products manufactured or in progress;
  • defective items for repair

All these materials, products and materials must be stored in an optimal way.

Storage rules

Storage must meet a few essential rules:

  • employee safety;
  • preservation of property;
  • optimization of space

Storing well means above all respecting these rules and knowing the number of items available at the moment.

The importance of stock management

Inventory software for small business refers to all the processes set up in the company and making it possible to define:

  • the supply thresholds;
  • the quantities to be acquired

It is one of the links in the logistics chain.

The three challenges of stock management

Stock management must respond effectively to three challenges.

Satisfying customer demand

For a store, it is necessary to have articles in sufficient quantity to meet the demand of its customers. For an industrialist, it is necessary to have the raw material and the elements essential to the manufacture of the products ordered in order to meet his delivery deadlines. Whether you are running a store or a factory, it is therefore essential that the person in charge of purchasing is fully aware of the demand, market trends, and supplier and distributor deadlines.

Cost optimization

Storing costs money. In fact, to the costs of acquiring goods are added those linked to conservation. Then, when the year-end inventory is carried out, some of them cannot be valued either because of their condition (deterioration or breakage) and their aging, or because of their outdated technology.

Space optimization

Logistics must be organized to bring in and out stocks in a controlled and rapid manner. For reasons of safety and easier movement within the storage area, it is essential to optimize space and storage. The preparation of orders thus becomes faster and the staff becomes more comfortable, which prevents work accidents and limits sick leave.

Good inventory software for small business comes down to minimizing costs, avoiding breakages, overstocking and accidents.


For more details, please visit: alfacybernetics.com

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