In the world of logistics, “stock movement” refers to the physical activities associated with moving goods or products from one location to another in the supply chain. It includes all the steps involved in the dispensing, transportation, and storage of goods from the supplier to the customer or point of sale. Stock movement is an important part of the logistics process involving inventory management and distribution.
Here are some key aspects of stock movement in the context of logistics:
- Goods Receiving:
- The process of receiving goods from suppliers or manufacturers to a warehouse or distribution center.
- Receiving goods involves checking the quality, quantity, and physical condition of the goods.
- The storage of goods in a suitable warehouse or storage facility.
- This includes the selection of optimal storage locations, stock organization, and the use of technology or automation systems to monitor inventory.
- The process of dispensing or taking goods from a warehouse or distribution center for delivery to customers or points of sale.
- Dispensing must be done accurately and efficiently to ensure timely delivery.
- Dispensing of goods often involves transportation steps, be it by truck, ship, plane, or other modes of transportation.
- Selection of the right mode of transportation and efficient shipping routes are integral to stock movement.
- Tracking and Monitoring:
- Continuous tracking and monitoring of stock movement from one point to another.
- The use of technologies such as inventory management systems (ERP), barcodes, or RFID (Radio-Frequency Identification) can help in monitoring stock in real-time.
In the context of logistics, the efficiency of stock movement is critical to reducing costs, improving customer service, and optimizing the overall supply chain. A good understanding of stock movement helps companies manage inventory more effectively, reduce lead times, and improve responsiveness to customer needs. Check out the full article at TransTRACK!
Benefits of stock movement recording
Recording stock movement has several important benefits in inventory management and business operations. Here are some of the main benefits of recording stock movement:
Analyze the Movement of Goods over a Period of Time
- Recording stock movement allows companies to track changes in the inventory of goods or products over a period of time. This helps in understanding trends, patterns, and fluctuations that may occur.
- Analysis of stock movements can provide insights into when and why changes in inventory occur, helping in planning production, distribution, and sales strategies.
More Optimized Inventory Planning and Recording
- By regularly monitoring stock movements, companies can make more efficient inventory planning. This helps avoid situations where stock is excessive or understocked, which can affect product availability and customer satisfaction.
- Accurate recording of stock inflows and outflows also helps in identifying items that tend to run out quickly or sell slowly, allowing companies to optimize purchasing and production.
Solid Basis for Strategic Decisions
- Recording stock movements provides a solid basis for strategic decision-making. Stock movement data can be used to evaluate the performance of a particular product, brand or product line.
- This information can also assist management in designing marketing strategies, pricing, and investment decisions in production based on actual market demand.
Recording stock movements not only helps in managing inventory more efficiently but is also an important tool to improve responsibility, transparency, and risk management in a company’s supply chain. By having a deep understanding of stock movements, companies can improve their operational efficiency and competitiveness in the market.
How to Create a Stock Movement Report
Creating a Stock Movement Report involves a few key steps that involve data preparation, analysis, and recording of stock movements. Here are the general steps for creating a stock movement report:
- Collect stock movement data from various sources, such as the inventory management system, goods receipt records, and goods issue records.
- Ensure that the data collected includes information on the date of entry and exit of goods, quantity of goods, and description of goods.
Make a Forecast
- Use historical data to make forecasts of future stock movements. This could involve analyzing sales trends, seasonality or special events that could affect demand.
- These forecasts help in planning inventory to avoid shortages or overstocks.
Inspection Before Goods are Stored in the Warehouse
- Make sure to check the quality and quantity of goods before they are stored in the warehouse. This may involve physical inspection, matching with purchase orders, and checking against quality standards.
- Record the results of these checks in the stock movement report to ensure data integrity.
Code Each Item
- Use a labeling or recording system to assign a code to each item. This can include SKU (Stock Keeping Unit) codes or other codes that are unique to each product.
- These codes help in efficient and accurate tracking of stock movements over a given time.
Separate Old Stock and New Stock
- In the stock movement report, segregate between old stock and new stock. This helps in understanding how well a particular product is moving in the market and whether there is a need to reduce or increase the stock of a particular product.
- Analysis of old and new stock can also provide insights into the product lifecycle and when products are likely to experience a decline in popularity.
Once these steps are complete, you can compile a stock movement report by summarizing relevant data, showing trends, and providing insights for future decision-making. A good stock movement report helps companies to manage inventory more effectively, prevent stock shortages and improve operational efficiency.
By bringing together various logistics services in one integrated platform, LSI opens the door to complete alignment from goods receipt to delivery. It provides unparalleled visibility into the entire logistics process, ensuring that companies have complete control over their stock movements.
One of the key added values of LSI is its ability to accurately plan inventory. The intelligent analysis provided by LSI helps companies to avoid costly stock shortages and reduce excess inventory costs. With real-time stock monitoring, companies can make quick and informed decisions to maintain an optimal balance in their supply chain.
If you want a solution that not only solves your logistics problems but also transforms the way you operate, Logistic Service Integrator from TransTRACK is the answer. Don’t let the complexities of logistics get in the way of your business potential. Discover how LSI can help you optimize stock movement, improve efficiency, and deliver the best experience to your customers.
Get in touch with the TransTRACK team today to gain further insight into how LSI can bring about a revolutionary transformation in your logistics management. Explore LSI solutions, and discover how to take your logistics operations to the next level. TransTRACK and Logistic Service Integrator – a partnership that will take your business to the pinnacle of success.