Inventory management is the process of ordering, handling, storing, and using a company’s
non-capitalized assets – AKA its inventory. For some businesses, this involves raw materials
and components, while others may only deal with finished stock items ready for sale.
The role of inventory management is to maintain a desired stock level of specific products or items. The desired level is a function of customer service requirements and the cost of inventory investment.
Average inventory formula: Take your beginning inventory for a given period of time (usually a month). Add that number to your end of period inventory (month, season, or year), and then divide by 2 (or 7, 13, etc). (Beginning of Month Inventory + End of Month Inventory) ÷ 2 = Average Inventory (Month)
Stock control is important because if high risk food is kept too long, even under favourable conditions, harmful bacteria may multiply. Additionally, even foods with a longer shelf life, whether dried, tinned or frozen, may deteriorate if they are kept for too long.
Stock Controller responsibilities include tracking shipments, overseeing inventory audits and maintaining reports of purchases and pricing. To be successful in this role, you should be familiar with supply chain procedures and have good communication skills to interact with vendors, clients and internal teams.