stock control

3 WAYS TO IMPROVE CASHFLOW: The Stock Control Approach

Insight Business Sage Africa
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Stock control is a very important issue, if not managed well, it can lead to loss of money, loss of customers, or impact negatively on the cash-flow. Too much stock or inventory can tie up your money and under-stocking can lead to lost sales or revenue.

The best approaches to stock control are to know when to restock, how long it’d take the stock to be delivered, how long each stock item was on the shelf before been sold. All this can be automated by using an inventory or stock control software.

Though most manufacturers operate the nick of time stock control model, this helps them save a considerable amount of money.



The first thing you need to do is to identify and separate your stock into fast and slow-moving stock items, the slow-moving items will most time tie up your money while the fast-moving stock items give you the desired cashflow. This would help you in decision making when restocking. Also.

1.      Know the turnaround time of your stock

2.      Just “Sell off” outdated stock, the longer it stays on the shelf, the difficult it gets to sell.

3.      Consider removing slow-movers from your product range.


Bulk buying might sound like a good idea. You get more stock items at a lesser rate. However, when you calculate the additional costs involved you’d be amazed, costs like increase in logistics, storage, insurance, and so on, the costs will also shoot up if you used credit facilities (with interests) to purchase the goods.

A good stock control strategy is to buy what you need and can turn over in a short period, excess goods add to your operational costs negatively affecting your cash flow.


Perform your stock control by using technology, adopt the use of online software that integrates with your sales team, suppliers, account departments. There should a seamless communication between all departments. Also, provide a multichannel payment option and make sure the software has reporting features that make you plan accordingly.

REFERENCE: Sage Advice

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