What is Stock Management?

Achieve greater sales volumes by efficiently predicting and acting on stock fluctuations

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Stock management is the function of understanding the stock mix of a company and the different demands on that stock. The demands are influenced by both external and internal factors and are balanced by the creation of purchase order requests to keep supplies at a reasonable or prescribed level. VMI helps organizations manage their stock by placing the responsibility of stock replenishment on the supplier.

TrueCommerce Datalliance receives data from a distributor, retailer or end user called a Product Activity Report. The report contains information such as sales, product transfers, and inventory position (on hand, on order, in transit).

  1. TrueCommerce Datalliance’s VMI platform reviews the data and sends a recommended replenishment order.
  2. The supplier reviews the recommendations.
  3. The supplier then creates a purchase order and sends to a customer (distributor, retailer, end user).
  4. Once the customer approves the purchase order, the order is shipped.

Decreased Inventory Costs 

Clients can minimize their inventory holdings, leading to reduced storage and handling expenses.

Enhanced Stock Availability 

By actively managing inventories, vendors decrease the likelihood of stockouts, thereby improving service levels.

Strengthened Supplier Relationships 

VMI encourages a collaborative partnership between the client and supplier, fostering better communication and mutual advantages.

Key Takeaways 

  • Stock Management Overview involves ordering, storing, tracking and controlling inventory to balance customer demand and holding costs. 
  • Effective VMI management prevents excess inventory and shortages.
  • TrueCommerce VMI platform streamlines inventory management by analysing sales and inventory data and enabling suppliers to generate purchase orders.
  • VMI reduces inventory costs by minimising holdings, enhancing stock availability and service levels. 
  • VMW strengthens supplier relationships through better communication and collaboration.