Stock management: Meeting demand, ensuring continuity, and cost control

Stock management is essential for every purchasing organisation and forms the backbone of logistical processes. An effective stock management system helps organisations find the right balance between demand and supply, ensuring there is always sufficient stock available without unnecessary storage costs. For example, consider a university that requires real-time updates on laboratory supplies to ensure continuity in research or a healthcare facility that automatically orders new medical equipment when stock falls below a certain level.

In this article, we discuss why stock management plays a crucial role in every organisation and how modern purchasing software with integrated stock management features supports finance and purchasing professionals in their daily tasks.

14 January 2026

Indissolubly linked: Purchasing and stock management

Always sufficient stock

Purchasing and stock management are closely linked, with effective stock management helping to control costs, prevent stock shortages, and increase efficiency. By implementing the right purchasing software, purchasing and stock teams can collaborate to ensure that the right products are ordered and delivered at the right time, preventing stockouts and overstocking.

Demand forecasting and stock planning are key elements here. With the right purchasing software, including stockmanagement functionalities, organizations can analyse historical data and accurately forecast future demand. This enables purchasing teams to make proactive purchasing decisions.

KPIs for stock management

Do you want to truly improve your stock management? Then it is essential to monitor performance with the right KPIs. Three important KPIs:

Average stock value

Keep track of your average stock value to analyze trends and avoid overstocking.

Turnover rate

Meet the rate at which stock is consumed by dividing the annual cost of goods sold by the average stock value.

Backorder percentage

Calculate the percentage of orders that cannot be delivered immediately. This helps to identify stock shortages and improve delivery reliability.

Stock management as an integral part of your purchasing software

It is clear that stock management cannot be seen separately from procurement. But which functions are then important? Here are some essential features that modern procurement and stock management software should have:

Real-time stock tracking: With real-time updates after each transaction, procurement teams can quickly respond to changes in stock levels.
Order levels and safety stock: Setting minimum and maximum stock levels to automatically generate an ordering recommendation when stock falls below a certain level.
Stock management per location: For organisations with multiple warehouses, this provides insight into the reorder point, maximum stock, and reservations per location.
Demand forecasting and planning: Analyze historical data to accurately predict future demand and prevent stock shortages.
Supplier management: Keeping track of supplier information to consistently choose the most reliable suppliers.
Automation of procurement processes: Automatically generate purchase orders to save time and costs.
Reporting and analysis: Detailed reports on stock levels and turnover rate to provide insight into stock trends and support decision-making.
Internal webshop: For internal orders, ensuring approved requests are processed and delivered efficiently.

Practical tips for optimal stock management

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With the right insights and tools, you can take stock management to the next level. Whether you work at a university, healthcare institution, or another company focused on logistics, effective stock management can make a world of difference. Does your organization have specific stock management needs? We are happy to think along with you.