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The manufacturing sector is plagued with uncertainty and is often hostage to factors beyond its control such as fierce global competition, interest rates, currency values, employment levels, and educational training.

Companies operating in such a business environment need experienced, professional advisers to help them steer a steady course. With years of experience acting for clients in the manufacturing sector, we can help you: Minimise risks from pricing and supply fluctuationsOptimise your stock control make important investment decisionsArrange acquisitions, mergers, or disposalsRaise finance manage cashflow through interest rate exchange and rate fluctuationsHandle foreign currency transactions

And, of course, we can help with all your accounting, tax, and audit requirements.

Whatever your business structure – sole trader or a limited company – we can help you manage your profitability through our specialized services.

There are three powerful forces at work in the retail sector that are driving changes in the way manufacturers to manage their stock: The need to supply an increasingly wider range of products, often with narrower, specialist appealsThe need to cut the cost of holding stock to a minimum need to be able to order and reorder at short notice in response to fluctuations in increasingly volatile markets

In other words, retailers are requiring more frequent, smaller deliveries, while manufacturers would prefer to deliver larger consignments with longer lead times.

The onus shifts to manufacturers
The retailers seem to be winning, and gradually the onus and cost of holding and managing stock are being transferred to manufacturers.

Since holding stock is no less expensive for manufacturers than it is for retailers, manufacturers need to develop effective stock management procedures if they are not to see their margins corroded by this trend. The key is to analyze your stock into individual stock-keeping units (SKUs) and then monitor the movement and performance of each.

For example, you might discover that a particular size or color of a garment outsells all others and adjust stock levels accordingly. Indeed, this approach enables you to mix and match SKUs to optimize sales with different customers and in different markets.

Focus on profitability not volume
The secret is to focus on the profitability of each SKU rather than its volume. For example, high volume low margin products might turn out to be less profitable than relatively low volume high margin ones, and you might want to reflect this in your stock management priorities.

Stock management audit
Stock management can be a complex and time-consuming area for business owners. We are always happy to help you conduct an audit of your stock management procedures and develop a more effective and profitable approach.

to arrange a preliminary review.

With years of service to clients in the manufacturing sector, we pride ourselves on being able to deliver a full range of client-focused services, including help and advice with: Improving financial controlsManaging cashflowControlling and reducing production costs and especially material cost-effective supply chain managementOptimising stock management through improving sales forecasts and production plans improving production and process efficiency and adopting appropriate technologies improving management processesCapital and financial planning to enable appropriate and timely investment dealing with an increasingly complex tax, reporting, and regulatory environment

Contact Us today to discuss how you can benefit from our range of specialist services.

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Please contact us if you need further advice, have any questions about our services, or would like a free consultation or a fixed quote.