Stock is money, so knowing when and where to apply is essential to the entrepreneur

Many entrepreneurs, even in the twenty-first century, still do not understand when and as little as purchase stocks during the different periods of the year.

Some businesses work with seasonal products should boost the stock in the period of increased commercialization and consequently reduce them or eliminate them at other times.

Caring for purchases

Excessive purchases in order to obtain discounts from wholesalers , distributors or manufacturers can be a trap for the cash flow of the company . On many occasions it is preferable to work with the narrow margins have much stock , and have a volume of sales that may not materialize , and products and goods would be stranded , lose validity, obsolete, thefts etc. and such.

Inventory control

Most entrepreneurs learn to control stocks in the ” hard way ” or experience of everyday life, however, there are tools such as statistical and mathematical models that facilitate in decision making , since the data and information that meet them are correct . There are individuals who believe that the mere computerization and IT department are sufficient to solve all management problems . The technology is worthless if the staff , data and information are not adequate.

Cooperative purchases. Some supermarket chains and other lines of business, with the aim of achieving better negotiations with suppliers, join to the achievements of quotations and purchase of various inputs, which effectively guarantees them buy in smaller lots and also the logistical advantage.

It is important to the buyer , the micro and small business understand the costs embedded in the buying process.

Currently lives in a scenario of measured inflation, averaging 5.9 % per year. What bit would represent the interest of the investment , or rather the opportunity cost of money compared to inflation and Selic (basic rate of the economy). However it is necessary to calculate it for finding the optimal buying known by scholars as LEC, economic batch purchase quantity and also the determination of “resupply”. (when issuing purchase order).

ABC model

A method that is widely used by businesses , especially those with large quantity and variety of items in stock is the inventory control system ABC.

ABC – Stocks in Group A represent the large volume of resources that the company invests in it. Or at high unit price, or the lot that needs to keep stored.

For example: an aircraft manufacturer will devote more attention and care for the stock turbine rivets and screws to fasten the structure . The stock of group B are raw materials , products and goods of intermediate unit or total values. Have the stock group C consists of items that can be kept in quantity by the low value added and total, which would not justify a continuous control.

Costs such as storage, capital, preparation, procurement, conference among others should be considered and directly influence the determination of the sale price and may be disregarded, sacrificing profit margins of each item in the mix of business.

Companies that benefit from tax credit of certain taxes could eventually acquire more goods, products and raw materials to pay higher taxes. It is a plan that the entrepreneur and the purchasing department should perform along with accounting and sales sector.

Be aware of the stocks is very important for day to day business . Who possess knowledge or assistance of a planning consultant is prudent .

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