Minimum stock

The minimum stock or safety stock, is nothing more than the minimum quantity that must exist in your stock. It has the function of covering replacement delays on the part of the supplier, so that this product will not be lacking in your company.

Usually out of stock occurs due to consumption spikes and often delays in delivery by the supplier, however you must be prepared to carry out an effective inventory control, so that your company’s sales flow is not affected due to this lack.

With the definition of the value of this stock, it is worth mentioning that if it is a very high value, it will incur storage and acquisition costs, however, if this stock is very low, you run the risk of ending up with no product in the stock and with this may lose sales, or in some cases it will have to stop production.

For you to be able to have an effective control of your stock, three points are important to be analyzed:

  • Best-selling products: These are the products with the most output in your company, so you cannot miss your list of goods, thus generating a continuous replacement of it.
  • Most profitable products: These are the products that will bring the most financial return for your company. It is these products that will bring you more cash, so the importance of always having this merchandise in your stock.
  • Customer habits: In this step it is important to know the habit of your customers, to avoid that in season of season, you have a high demand for merchandise and are unable to serve your market.

We can understand, then, that having an inventory control means you generate the amount of supplies needed for your business, without it causing unforeseen events or any very high investment. In a much more succinct way, it can be said that working with the minimum stock will help you organize it, in a way that you will not be short of products and will not bring you surpluses.

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