
What is stock management? And how to master it in a warehouse
February 7, 2025
Stock management is the process of ordering, tracking, and storing inventory. Warehouse managers, inventory specialists, and business owners will understand the importance of stock management, as it plays a crucial role in both warehouse efficiency and customer satisfaction.
In this article, you'll learn more about the common challenges associated with stock management and how to solve them. We'll also provide you with practical warehouse stock management tips to help you improve inventory management and streamline related procedures.
What Is Stock Management, And Why Does It Matter?
Stock management also referred to as inventory management, involves ordering and tracking stock as well as optimising inventory levels. A few of the core functions of inventory management include:
- Inventory tracking
- Stock replenishment
- Storage optimisation
- Stock rotation
When you have an efficient inventory management system in place, you can expect to enjoy the following benefits:
- Improved operational efficiency
- Reduced holding costs
- Prevention of supply chain issues
- Fewer overstocking incidents
- Better customer satisfaction
Common Challenges Businesses Face With Stock Management
Depending on the size of your business and the scale of your operation, inventory management can get quite complicated. Managing inventory comes with plenty of challenges and operational risks, some of which include:
Overstocking
Overstocking is a common problem, especially for new business owners who are scared of running out of inventory. However, excess inventory can tie up your capital and take up valuable storage space. Certain products may also expire before you get the chance to sell or use them.
Stockouts
A stockout happens when a certain product is out of stock. This can happen when you aren't paying close enough attention to your stock levels, resulting in missed sales opportunities and customer dissatisfaction.
Inefficient Stock Rotation
Inventory should be moved around so that older stock is sold before newer stock to eliminate the risk of sitting on obsolete or expired stock. When you don't have an effective stock control system, this problem becomes increasingly common.
Lack of Visibility
Efficient stock management requires you to know exactly where your stock is located. If you don't, you may experience challenges tracking inventory across multiple channels. As a result, you won't be able to effectively allocate inventory to the channels where it's most likely to sell, missing out on potential sales opportunities.
Manual Processes
If you're still using manual processes as part of your inventory management system, you may want to consider swapping over to specialised inventory management software. Manual processing often leaves room for human error and inefficiencies in stock control.
Forecasting Inaccuracies
Understanding customer demand can be difficult, with over - or underestimating leading to inventory imbalances.
- Overestimating demand leads to excess inventory, increased holding costs, and tied-up capital that could be used elsewhere.
- Underestimating demand leads to stockouts, lost sales, disappointed customers and potential damage to brand reputation.
This is why data-based predictions and forecasting are so important.

7 Practical Strategies To Improve Stock Management
There are plenty of actionable steps that will improve your stock management system and minimise inefficiencies.
Let's take a look at seven proven strategies to improve your stock management processes.
Accurate Demand Forecasting
Using historical sales data and keeping track of the current market conditions should help you maintain optimal stock levels. Leveraging tools like StoreFeeder's WMS (Warehouse Management Software) can assist you in making more accurate predictions.
For example, with a WMS, you can effectively analyse your supplier lead times, current inventory levels, and sales data to ensure you're never short of key products.
While unexpected factors can always crop up, you should always have a somewhat accurate idea of how much stock you'll need each month.
Inventory Categorisation
ABC analysis is an inventory management method that involves categorising stock into three different groups based on importance and value. The three categories include:
- Category A: These are high-value items that may sell infrequently but need to be handled with extra care.
- Category B: These are items with moderate value that sell regularly. They are not as valuable as 'A' items.
- Category C: 'C' items are low-value items that are sold frequently. They are not as important as the items in the other two categories.
Using this system, you'll be able to identify the most important items and distribute resources accordingly. Different categories typically require different management systems and controls to streamline your warehouse operations.
Inventory categorisation helps with stock management as it allows you to:
- Save time by finding items quicker
- Determine which items require the most resources
- Ensure that high-value items are always in stock

Adopt Barcode Scanning and Automation
Barcode scanning and automation use machines that scan barcodes (patterns of parallel lines) so you can easily see which items are coming in and out of your warehouse. Scanning the barcode attached to a certain item will also provide you with detailed information about the item.
Barcode scanning and automation are the industry standard in most modern warehouses. If you are not yet using these methods to assist with inventory control, you are most likely at a disadvantage, as these methods help streamline inventory tracking and reduce human error.
Optimise Warehouse Layout
An optimised warehouse floor plan is essential for maximising efficiency and organisation. The ideal layout for your warehouse will depend on its size, operational requirements, and the types of products you stock. It is also a good idea to perform a warehouse audit, paying close attention to different zoning areas.
For example, you could designate specific zones for receiving, picking, packing, storage, and shipping to prevent bottlenecks and confusion.
Intelligent routing will help you save time when locating and moving different items. You may also want to look into the most efficient picking methods for your production process, such as wave picking, batch picking, and zone picking, among others.
Set Reorder Points
Warehouse Management Software typically allows you to automate replenishment triggers to avoid stockouts or excess stock. This software monitors your stock levels and will notify you when you need to replenish your inventory.
You also need to be aware of any supply chain issues so that you can order stock well in advance.
Conduct Regular Inventory Audits
If you want to increase efficiency when it comes to inventory control, you should use cycle counting for ongoing accuracy. Cycle counting is an inventory management system that involves counting your inventory to ensure it aligns with your records.
If you identify any discrepancies, you should always address them as soon as possible, as these are typically the result of theft, human error, or inaccurate recording.
First-In-First-Out (FIFO) or Last-In-First-Out (LIFO)
FIFO and LIFO are accounting methods used for stock management.
- FIFO method: The oldest items in your inventory are the first to be sold.
- LIFO method: The newest items in your inventory are the first ones sold.
In most cases, FIFO is the preferred process, especially when it comes to raw materials and perishable goods. However, LIFO offers advantages in certain applications. For instance, LIFO is sometimes the preferred choice for businesses that value data recency. However, it's best to do a bit of research to determine which option is best suited for your operational needs.
How StoreFeeder Can Help Optimise Stock Management
Our specialised programmes and warehouse operation solutions help streamline stock management processes and resolve common inventory challenges.
From warehouse operations and inventory management to order processing and multi-channel listings, we aim to assist you at every step of your journey.
Here are just some of the ways StoreFeeder can help you optimise your inventory management:
Real-Time Inventory Tracking
As an eCommerce business owner or warehouse manager, it's vital to know your exact stock levels of various products on any given day. Well, with StoreFeeder, that's 100% possible.
Our fully integrated WMS ensures near-instant visibility of stock levels and reduces reliance on manual stock checks. With just a few clicks, you can see the exact inventory numbers you have across multiple warehouses.
Data-Driven Insights
StoreFeeder uses innovative analytics and reporting tools to identify trends and inefficiencies. These valuable insights present you with actionable data that can help you improve your decision-making. All data is presented in a format that is easy to understand and act upon.
With our data-driven insights, you'll more than likely discover unexpected information about your business's inventory, which can be used to your advantage.
Automation Features
Automation is an essential part of any stock management system as it helps streamline processes like replenishment and demand forecasting.
Automation also helps minimise any human error in stock management, leading to increased accuracy and efficiency. If you're still using a manual system, this is the right time to invest in an upgrade.
Centralised Management
We believe that stock management should be as straightforward as possible, which is why we offer centralised systems. StoreFeeder helps you integrate inventory data across multiple sales channels with ease, thanks to its innovative processes.
No matter how much stock you carry, you can still find all the relevant information in one place. Our centralised management also helps maintain consistency in stock levels across different platforms.
Scalability
As your business expands, you'll require a more effective inventory management system that can handle your growing needs. With StoreFeeder, you can welcome business growth with open arms. Our WMS is completely scalable and grows with your business as it can handle increased inventory levels and complexity.
Even businesses experiencing rapid growth and a sharp increase in inventory can scale with ease.
FAQs
What is the goal of stock management?
The goal of stock management is to ensure that inventory is readily available and easy to find. Warehouse operations should never be slowed down due to a lack of stock or badly organised stock.
What is the role of a stock manager?
A stock manager is someone who oversees the day-to-day tracking and monitoring of inventory.
Is there only one way to manage stock?
No, there are dozens of different methods and systems for managing stock. The system that will work best for you will depend on your business's size, location, and a variety of other factors.

Conclusion
No matter the size and scale of your operation, you need to implement efficient inventory management systems if you want your business to succeed. Yes, there are plenty of challenges to overcome along the way, such as excess inventory, supply chain issues, forecasting inaccuracies, and many more.
Fortunately, StoreFeeder provides an all-in-one solution for eCommerce business owners, inventory specialists, and warehouse managers. Our stock management system is designed to help you meet customer demand, minimise inefficiencies, and increase profits. We invite you to explore StoreFeeder’s WMS features, which aim to enhance your warehouse operations.
If you're interested in learning more about how StoreFeeder can help you manage inventory, book a demo today to try it out for yourself.