Keys to Improving Stock Management

If we want to be profitable, in the current era of electronic commerce, it is essential to manage our warehouse well. Properly managing the stocks we have is what can differentiate a viable company from a non-viable one. So let’s see how to make optimal stock management to boost our warehouse.

What is Stock Management?

Respond to customer demand with the minimum possible stock. This is, broadly speaking, the objective of inventory and warehouse management. By means of this, it is tried to obtain that the derived costs of the maintenance of the inventories go down as much as possible. The limit is that the service offered to the customer continues to be satisfactory.

Differences between Stock Management and Control

Proper management of our stock is not achieved merely with its control. This control covers an exhaustive inventory of all the products we have for sale. Consequently, of course, adequate stock control is necessary for any warehouse. But for its optimal management, we must also have a strategy, a plan to manage it optimally, and an analysis of the results we are obtaining.

Stock Classification According to its Function

It depends on the type of stock that we manage, we will choose a different strategy for its management. Therefore, it is necessary to carry out a stock classification. Here we establish the following categories:

Security Stock

This is the inventory that we keep in our warehouse as a guarantee against any eventuality. For example, in the event of a meteorological problem, the delay of a supplier, a sudden change in demand. This safety stock prevents a failure in our service from occurring and that the client is not affected by this eventuality.

Minimum and Maximum Stock

Closely related to the previous concept is the minimum stock. In this case, we are talking about the minimum number of stocks of a product that we must keep in our warehouse before having to resort to the safety stock.

On the other hand, the maximum stock refers to the maximum volume of inventory that we can keep without our costs being affected. How could this happen? For example, if the products bunch up, deteriorate, or even end up breaking. Therefore, a maximum stock must be set.


It is, in short, the goods that have already become obsolete in our warehouse. They can no longer be sold and, therefore, they must be disposed of.

Recovery Stock

In contrast to the dead stock, the salvaged stock can have a second life. This includes, therefore, products that can be redistributed or reused for a new purpose.

Speculative Stock

As its name suggests, it is a stock that we accumulate from speculation. This speculation, which obviously should be based on some proven hypothesis, can foresee, for example, that the demand for a certain product will grow. Therefore, the speculative stock would be that which we accumulate based on a forecast.

Cycle Stock

This is the usual stock, that is, the one that we must keep in a normal situation. If there are no unusual circumstances, the cycle stock is the appropriate reference to consider.

Seasonal Stock

If we know that certain products are consumed more at a certain time of the year, we will have a greater quantity of these in our warehouse ready to face this foreseeable growth in demand. That, in short, is the seasonal stock that we must always keep in mind as well.