Efficient stock control is having the right amount of stock in the right place at the right time. It ensures that your capital isn't tied up unnecessarily, and protects production when problems arise with the supply chain.

There are four main types of stock:

• raw materials and components - ready to use in production
• work in progress - stocks of unfinished goods
• finished goods ready for sale
• consumables - for example, fuel and stationery.

Deciding how much stock to keep depends on the size and nature of your business, and the type of stock involved.