4 Stock Management Problems and How to Overcome Them

Stock management activities in warehouses are matters that need to be properly taken into account. However, in reality, there are several companies that overlook the importance of stock management. As a result, in the management process, companies are often faced with various problems, such as inconsistent product quality or a decline in company profits.

One effective solution to face stock management problems is by implementing stock management software. It should be noted that the implementation of such software aims to improve stock management performance. Below are common problems that occur during stock management and how stock management software plays a role as the solution to these problems.

Common Problems in the Stock Management Process

Managing warehouse stock needs to be monitored thoroughly. The goal is so that companies can optimize certain points when problems occur. Here are several problems that are often found in stock management:

1. Inaccurate stock quantity

Having stock records that match the physical stock in the warehouse is not an easy task, especially if the recording is done manually. In addition, discrepancies in stock quantities can be caused by warehouse staff or human error.

With manual recording, records can easily be lost, making it difficult for warehouse staff to match stock quantities during the stock management process.

Therefore, using a Warehouse Management System (WMS) can help companies solve this problem. With WMS, records will be stored automatically and human error can be minimized.

2. Ineffective warehouse storage locations

Every company certainly has different warehouse storage location arrangements depending on the type of business and existing standards. However, in reality, many companies still do not carry out proper stock management in their warehouses.

For example, there is no separation or grouping of stock based on its classification. Storage locations that do not match the type of goods often cause problems such as hampered inbound and outbound stock flow. As a result, the stock management process becomes less optimal in preparing stock to fulfill orders.

The solution for ineffective storage is to implement a warehouse layout system. Of course, this solution can be applied both in large storage areas and small warehouses. Applying warehouse layouting can help improve the effectiveness of stock management processes.

3. Changing stock demand

Stock management problems can also be caused by external factors, such as the ongoing pandemic. Changes in people’s activity patterns affect consumption power and purchasing behavior. This results in rapid changes in stock demand. As a result, stored stock in the warehouse may not generate sales. If companies are unable to adapt, they will certainly experience losses.

Therefore, companies need to have complete and integrated stock management data history in order to forecast market demand and always be ready to face changing stock demand.

4. Uneven stock quality

Warehouse staff involved in stock management activities generally have multiple responsibilities. For example, staff who handle item picking in the warehouse may also do packing and quality control. In fact, multitasking in this way will reduce warehouse staff performance.

Companies need to involve different warehouse staff for certain processes in stock management. For instance, warehouse managers can handle stock quality control. In addition, warehouse staff responsible for inbound or outbound stock can also perform quality control.

Overcome Stock Management Problems with Stock Management Software

To overcome common problems that occur in stock management processes, companies need to consider implementing software as a solution. By implementing stock management software, companies can carry out management processes more efficiently, effectively, and accurately. That way, the problems mentioned above can be resolved. In addition, good stock management works based on data. Thus, companies can forecast demand, conduct evaluations, and make the right policies to grow their business.

As a provider of Stock Management Software, Prieds is here as a warehouse management solution for companies through software that can be connected with hardware using WMS technology. The various advantages and features offered by Prieds Stock Management Software can help your business optimize management processes efficiently, effectively, and accurately.

You can learn more about solutions to stock management problems by consulting with the Prieds expert team. Get the right solutions and various benefits by implementing Prieds Stock Management Software in your business.