Introduction to Stock Management Process

Retail (Links to an external site.), as we know, is a business that sells goods and services to the end consumer. As book retailers we primarily sell stock, in the form of books, with an accompanying service.

Stock costs us between 30% and 50% of our turnover. It also makes up the majority of our current assets. The stock is our business! It therefore has a serious impact on our cash flow.

The process of managing stock (Links to an external site.) includes knowing:

what stock we need,
what stock is due to come in
what stock we have,
what stock we have sold
what stock needs to be returned to the suppliers
what stock we have returned to the suppliers
what stock we have to mark down and then write off

To run the business efficiently we need to know, at all times, what all the above stock specifically is as well as the value of the stock. This process we will call the stock management process: see figure 1 below

Figure 1: Stock Management Process Flow

In this module we will cover the following topics:

Keeping Track of Your Stock
Ordering Process
Receiving Process

Step 1: Delivery Process
Step 2: Receive stock on / from invoice
Step 3: Reconcile the Invoice; your Order Numbers, your stock On Hand
Step 4: Create a return request for any invoice discrepancies
Step 5: Create price labels for each item
Step 6: Ready the book for merchandising

Selling Process
Stock Adjustments

What can I expect in this Module?

Below is a summary of the Module contents, make sure that you have participated in all these items to complete the Module.

Number of

Content Pages:

Number of

Videos:

Number of

Quizzes:

Number of

Assignments:

Approx Time Required to Complete Module:

Requirements for Completing Module:

3 Hours

Submit 6 Quizzes

See Also:		Related Topics:
MODULE: The Business of Running a Bookshop MODULE: Money Process MODULE: Stock Management Process		Keeping Track of your Stock