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It can be used alongside a simple re-order system.

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For example, the two-bin system works by having two containers of stock items. When one is empty, it's time to start using the second bin and order more stock to fill up the empty one. Stock cards are used for more complex systems. Each type of stock has an associated card, with information such as:. More sophisticated manual systems incorporate coding to classify items. Codes might indicate the value of the stock, its location and which batch it is from, which is useful for quality control. Computerised stock control systems run on similar principles to manual ones, but are more flexible and information is easier to retrieve.

You can quickly get a stock valuation or find out how well a particular item of stock is moving. A computerised system is a good option for businesses dealing with many different types of stock. Other useful features include:.

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The system will only be as good as the data put into it. Run a thorough inventory before it goes "live" to ensure accurate figures. It's a good idea to run the previous system alongside the new one for a while, giving you a back-up and enabling you to check the new system and sort out any problems. There are many software systems available.

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Talk to others in your line of business about the software they use, or contact your trade association for advice. Avoid choosing software that's too complicated for your needs as it will be a waste of time and money. Radio Frequency Identification RFID allows a business to identify individual products and components, and to track them throughout the supply chain from production to point-of-sale.

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An RFID tag is a tiny microchip, plus a small aerial, which can contain a range of digital information about the particular item. Tags are encapsulated in plastic, paper or similar material, and fixed to the product or its packaging, to a pallet or container, or even to a van or delivery truck. The tag is interrogated by an RFID reader which transmits and receives radio signals to and from the tag.

Readers can range in size from a hand-held device to a "portal" through which several tagged devices can be passed at once, e. The information that the reader collects is collated and processed using special computer software. Readers can be placed at different positions within a factory or warehouse to show when goods are moved, providing continuous inventory control.

Using RFID tagging for stock control offers several advantages over other methods such as barcodes:. The costs associated with RFID tagging have fallen over recent years, and continue to do so, to bring the process within the reach of more and more businesses. The benefits of more efficient stock control and improved security make it particularly attractive to retailers, wholesalers or distributors who stock a wide range of items, and to manufacturers who produce volume runs of products for different customers.

Keeping stock secure depends on knowing what you have, where it is located and how much it is worth - so good records are essential. Stock that is portable, does not feature the business' logo, or is easy to sell on, is at particular risk. A thief coming in from outside is an obvious threat. Check the security around your premises to keep the risk to a minimum. In a store, thieves may steal in groups - some providing a distraction while others take goods. Teach your staff to be alert and to recognise behaviour like this. Set up a clear policy and make sure staff are trained in dealing with thieves.

Offering to help a customer if you are suspicious will often prevent a theft. Avoid using confrontational words like "steal" if you do have to approach a suspected thief, and avoid getting into a dangerous situation. Quality control is a vital aspect of stock control - especially as it may affect the safety of customers or the quality of the finished product.

Efficient stock control should incorporate stock tracking and batch tracking. This means being able to trace a particular item backwards or forwards from source to finished product, and identifying the other items in the batch.

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Goods should be checked systematically for quality, faults identified and the affected batch weeded out. This will allow you to raise any problems with your supplier and at the same time demonstrate the safety and quality of your product. With a good computerised stock control system, this kind of tracking is relatively straightforward. Manual stock control methods can also use codes to systematise tracking and make it easier to trace particular batches.

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Radio Frequency Identification RFID can be used to store information about a product or component's manufacturing date, to ensure that it is sold or processed in time. The system can also be used to trace faulty products quickly and efficiently. There are many administrative tasks associated with stock control. Depending on the size and complexity of your business, they may be done as part of an administrator's duties, or by a dedicated stock controller.


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For security reasons, it's good practice to have different staff responsible for finance and stock. Stock can tie up a large slice of your business capital, so accurate information about stock levels and values is essential for your company's accounting. Figures should be checked systematically, either through a regular audit of stock - stocktaking - or an ongoing program of checking stock - rolling inventory.

The investor then sells the stock, retaining the cash proceeds. The short-seller hopes that the price will fall over time, providing an opportunity to buy back the stock at a lower price than the original sale price.


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Any money left over after buying back the stock is profit to the short-seller. At first glance, you might think that short-selling would be just as common as owning stock. However, relatively few investors use the short-selling strategy. One reason for that is general market behavior. Over time, the stock market has generally gone up, albeit with temporary periods of downward movement along the way.

For long-term investors, owning stocks has been a much better bet than short-selling the entire stock market. Sometimes, though, you'll find an investment that you're convinced will drop in the short term. In those cases, short-selling can be the easiest way to profit from the misfortunes that a company is experiencing. This book, regardless of your expertise and experience in dealing with the stock market will help you learn everything you need to know to start short selling today.

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