In short: Know how much of each item you sell per day, reorder when stock reaches the reorder point, and count a small part of the shop every week.
In this guide
In most shops, the stock on the shelves is the biggest pile of money in the building, bigger than the drawer. Yet it is usually managed by eye. This is a practical guide to running stock by the numbers: what to order, when, how much, and how to clear goods that tie up your cash.
Stockouts and dead stock are the same problem
When an item a customer asks for has run out, you lose the sale and maybe the customer, who buys next door and may get used to it. When shelves fill up with items that do not move, your money is frozen there and you cannot buy what actually sells.
Both come from the same habit: ordering from suppliers by feel instead of by numbers. The goal is not big stock or small stock. It is enough stock to last until the next delivery arrives, with a sensible safety margin.
Start with a clean item list
- One clear name per item, not three names for the same product typed by three different people.
- A barcode for every item, either the factory one or a label you print.
- The cost price saved next to the selling price, or you will never know your profit.
- A clear unit: piece, carton or kilo, and how many pieces in a carton.
- Expiry dates recorded for items that expire, like dairy, cosmetics and canned goods.
- A minimum for every key item, so you know when to reorder.
When to reorder: the reorder point
Every item has a quantity at which you should order more. Work it out simply: daily sales multiplied by the number of days your supplier takes to deliver, plus a small safety margin.
Example: you sell 12 cartons of a particular milk a day and the supplier delivers in 3 days. You need 36 to cover the wait, plus 12 as a buffer. When stock hits 48, order. Good inventory software alerts you at that point so you are not doing the sum every time.
Make stocktaking a weekly habit, not a yearly event
A big year-end count is exhausting and finds the gaps far too late, after the money is gone. It works better to count a small section every week: cleaning products this week, canned goods next week. In two months you have counted the whole shop without closing for a single day.
Counting by scanning is faster and more accurate. Scan the item, type what is actually on the shelf, and the software compares it with the recorded quantity and shows the gap. A gap that keeps appearing on the same item points to an entry mistake, spoilage or theft, and deserves a closer look.
Read your stock in numbers
- Items not sold in 14 days: decide their fate, a discount, a return to the supplier, or no reorder.
- Days of stock left: how long the current quantity lasts at today's selling rate.
- Stock value at cost: how much of your money is sitting on the shelves right now.
- Top sellers: these should never run out.
- What expires within a month: discount it before it becomes a total loss.
- Purchase invoices: each supplier invoice updates quantity and cost price, so your profit figures stay right.
Deal with suppliers using numbers
When you know how much of each item you sell, you negotiate with confidence. You order smaller amounts more often for fast movers, and you turn down deals on items you know sit on your shelves, however tempting the discount.
Keep track of what you owe each supplier and when it is due, so month-end totals do not catch you off guard. And plan for the seasons: Ramadan, Eid and back-to-school change demand for many items, so check last season's numbers before you order.
Where software helps
All of this can be done in a notebook, but it eats hours every week. In Ghalleh, quantities drop with every sale and you get an alert when an item falls below its minimum. The stock report shows your stock value at cost, items not sold in 14 days with the money tied up in them, and what expires within a month, so you can put it on offer or return it. The order list gathers what is running low, grouped by supplier, ready to send.
You can bring your items in from an Excel or CSV file of up to 20,000 rows: Ghalleh matches the columns itself and shows the rows for review before saving. When a supplier invoice arrives, photograph it or upload the PDF and Ghalleh reads its lines. Supermarkets also get about 388 ready packaged items with their company logos. For the full picture of the inventory software, see Ghalleh's inventory page.
Common questions
What is the easiest way to do a stock count?
Split the shop into sections and count one section a week by scanning barcodes and entering what is on the shelf. You never close the shop, and you catch gaps early instead of at year end.
How do I spot dead stock in my shop?
Look for items with no sales in two weeks or more and work out their value at cost. That money is frozen, so decide on a discount, a return to the supplier, or stop ordering them.
How much stock should I keep of each item?
Enough to last until the next delivery plus a small buffer. Multiply daily sales by delivery days, add a day or two as safety stock, and review the figure monthly because demand shifts around Ramadan and the school season.