• 04Sep

    The Advantages and Disadvantages of Stock Control Software

    Stock control software is a fantastic service used in businesses for keeping checks on your products and how well they are doing. There are like most things in life both advantages and disadvantages of using the system. This article will take a look at both to help you decide if stock control software is for you.


    Stock control software increases the efficiency of your business by putting into place a number of features that help with the smooth operation of ordering and checking stock.

    • The software makes sure that you have the right quantity of stock in your business. Too much stock can cost the business money as can too little stock.
    • When a customer has bought a product from you the system is able to recognise this. If the product is scanned or punched into a till system at the checkout the information can then be sent to the stock control software where it is able to record the activity.
    • Once your products start to run low the system can automatically contact the main warehouse to deliver more goods to you at the right time and in the right quantity.
    • The system can create and produce reports on a regular basis. These reports carry information about how many products have been sold, how much they were sold for and how quickly they sold. This sort of information allows you to decipher whether or not a product is selling well. If the product is not doing well you are then able to make adjustments to try and promote the product or you can choose to get rid of the product completely.
    • Stock control software saves businesses a lot of time and effort. Manually doing stock control can be time consuming once you have checked what you need, ordered it and produced your own reports. With the stock control software in place your business may not need as many staff as before therefore improving the businesses profit.


    • If stock control software is not set up properly it can damage your business rather than help it. Buffer stock is the products that you keep out back to refill your shelves. If your system orders too much stock then you could potentially start to lose money. Overstocking cost your business money as you will need extra warehouse space, your insurance costs will be higher, security costs will be higher to prevent theft, stock may become damaged and it could even go out of date. Money that was spent on this stock could have been spent better elsewhere instead of having to go to waste.
    • The software could also order too little stock which would result in a stock-out. A stock-out is when you run out of the products that you should have available. This can cause your business suffer consequences and gain a bad reputation. If you run out of stock you still have to pay your staff for coming into work. Without the movement of products selling you will be making no profit. If you have any business orders or sales you could risk losing them if you do not have the stock available for them when they want it. If the business does not meet the customer’s requirements through lack of stock it could potentially lose these customers.
    • Changing your business form a manually run stock control business to a system based business could mean you need to shut shop for a while until everything is put into place.
    • It can be quite expensive to use stock control software as you may need to invest in new equipment as well as support and training for staff.
    • The system could break down at any point due to technical difficulties. In this case you would need a backup plan or procedures put in place in case of this ever happening. It could be costly to have your equipment repaired and you may have to buy backup equipment or a support agreement.

    There appear to be more disadvantages than there are advantages however you need to take into account the likelihood of some of these things occurring. As long as you set up your system properly you should be just fine. The decision of course is yours and should be made in regards to how it is going to benefit you and your business.


    Author: Emma (1 Posts)

    Emma frequently writes on the subject of business software & efficiency and is currently guest blogging for Synergy ICT.

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