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Stock and money

How to manage shop inventory in five steps, with a worked example

Most shops do not lose money on stock because of theft or bad luck. They lose it because nobody knows what is on the shelf. Here is how to manage shop inventory in five steps that you can start today with a notebook, and finish much faster with Dukaan POS.

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The stock screen: levels, low stock and out-of-stock at a glance
5 stepsstart with a notebook
Low-stock listis your order sheet
Best forOwners who want to stop running out and stop over-buying
Works onOn paper to start, faster in the app
Not forWarehouses with several locations

1Step 1: Count what you have

Start with one honest count. Walk the shop with a notebook and write each product, its unit and the quantity. Count in the unit you sell: kilograms of sugar, packets of tea, pieces of soap. Do not count in your head. A first count takes a few hours, and it is the most valuable few hours you will spend, because every later number depends on it.

Where a typical shop's sales come from

Example split by item group

80%15%
A items (top 30) 80%B items 15%C items 5%
💡 A few items carry the shop, so that is where stock attention pays most.
Illustrative example numbers to show the idea, not results from a real shop.

2Step 2: Sort items by importance

Not every item deserves the same attention. Mark the thirty items that bring in most of your sales; these are your A items. Check them every day. The next group, the B items, gets a weekly look, and the slow rest, the C items, a monthly one. This single habit saves more effort than any tool, because it points your attention where the money is.

Without a method

  • Stock-outs on the busiest days
  • Cash stuck in slow items
  • Counts that never match

With the five steps

  • Minimums for the top items
  • Weekly review of slow stock
  • Deliveries recorded at the door

3Step 3: Set a minimum for each A item

A minimum is the quantity at which you must reorder. Multiply daily sales by the days your supplier takes, then add a day or two as a buffer. If you sell 12 kg of daal a day and the supplier needs three days, your minimum is 12 x 4 = 48 kg. When stock touches 48 kg, you order. Our reorder point guide goes deeper.

🧮 When should I reorder?

Reorder at
Sales during delivery
Buffer stock

Reorder point = daily sales x delivery days + a safety buffer.

4Step 4: Record every delivery

Stock goes wrong at the door. When goods arrive, write the supplier, items, quantity, rate and bill number before the delivery person leaves. Compare against the bill. Anything short or damaged should be noted at once, when you can still claim it. Entering costs matters too, because without them you cannot know your profit.

5Step 5: Review weekly and fix the gaps

Once a week, check what ran out, what is piling up and what is near its date. Move old stock to the front, discount items that are slow, and raise or lower minimums. After a month the pattern settles, and surprises become rare. The review takes twenty minutes and pays for itself in reduced waste.

6How Dukaan POS does the steps for you

In the app, stock falls with every sale and rises with every purchase, so Step 1 is done once. Minimums feed the low-stock list, which is your shopping list. Expiry dates trigger warnings, and the valuation report shows how much money sits on the shelf. You can see how the alerts work and try it for seven days free.

★Get started in four steps

  1. Count the shop onceWrite each item and quantity in its selling unit.
  2. Mark your A itemsThe thirty that bring most of your sales.
  3. Set minimumsDaily sales times delivery days plus a buffer.
  4. Review weeklyWhat ran out, what piled up, what nears its date.

!Good to know before you start

  • The method works on paper; the app only makes it faster and more accurate.
  • Counts still need a physical check from time to time.
  • Dukaan POS tracks stock per product, not per batch.

?Questions about how to manage shop inventory

How often should I count my stock?

Count everything once to start, then check your top items weekly and the rest monthly.

What is a minimum stock level?

It is the quantity at which you must reorder so you do not run out before the delivery arrives.

Do I need software to manage inventory?

No, but software removes the arithmetic and keeps counts current after every sale.

How do I deal with slow items?

Keep a small amount, avoid reordering until sold and discount them if they age.

How do I handle expiry dates?

Record the date on delivery, check weekly and sell the oldest first.

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Solution

Inventory management software

Inventory management software for shops: stock reduces with every sale, purchases add stock, counts fix errors, and low-stock and expiry warnings come in one list.

Feature

Low stock alert software

Low stock alert software for shops: set a minimum for each product, see low and out-of-stock items on the home screen and in alerts, and reorder in time.

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POS stock report software

POS stock report software for shops: stock valuation at cost and retail, low stock list, product sales and stock history, downloadable as PDF or CSV.

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Stock management software

Stock management software for shops: a live stock record with history, staff stock requests, damaged and expired write-offs, and stock value. Free 7-day trial.

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