Regular monitoring of stock levels is essential for every business regardless of your production cycle, whether it’s a day or a month long. 

Should your production cycle be just a day long, monitoring stock levels becomes crucial mostly in terms of observing you have what you need in stock tomorrow. You must make your stock monitoring as automatic as possible to ensure that nothing gets missed or neglected in terms of what to order.

The longer the production cycle, the more time you seemingly may have to ensure your stock levels are meeting production needs, however it becomes more crucial optimizing that your order things with longer shipment time in the right time. There’s no point in keeping storage space underneath goods you need in a months time for instance, however it’s important to have them there once the month has passed.

Another thing to note is that regardless of your production cycle, goods or materials no longer in use with no future usage planned either should be excluded from your stock, resold to someone who uses them or scrapped. It’s about clearing the storage space as well as the company’s balance sheet from assets which in fact are no longer worth their value most probably.