slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Inventory is often referred to as the graveyard of business because over investment in stock is a frequent cause of busi PowerPoint Presentation
Download Presentation
Inventory is often referred to as the graveyard of business because over investment in stock is a frequent cause of busi

Loading in 2 Seconds...

play fullscreen
1 / 28

Inventory is often referred to as the graveyard of business because over investment in stock is a frequent cause of busi - PowerPoint PPT Presentation


  • 112 Views
  • Uploaded on

STOCK CONTROL. Inventory is often referred to as the graveyard of business because over investment in stock is a frequent cause of business failure. STOCK CONTROL. Many business costs, such as: A storeman’s wages Storage costs Insurance of the stock Interest on borrowed money,

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Inventory is often referred to as the graveyard of business because over investment in stock is a frequent cause of busi' - bernad


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

STOCK CONTROL

Inventory is often referred to as the graveyard of business because over investment in stock is a frequent cause of business failure.

slide2

STOCK CONTROL

  • Many business costs, such as:
  • A storeman’s wages
  • Storage costs
  • Insurance of the stock
  • Interest on borrowed money,
  • are directly related to investment in inventory.
slide3

STOCK CONTROL

  • it is important to control stock and inventory so that there is:
  • enough to keep work flowing efficiently
  • not too much so that money spent on the stock lies idle while it is not used.
slide4

STOCK CONTROL

An inventory is simply a list of all the goods purchased and used in the manufacturing process.

For example

  • raw materials
  • work in progress
  • finished goods
slide5

STOCK CONTROL

  • Stock control is used to:
  • Reduce the costs of running the businesses
  • Reduce excess stock and wastage
  • Make sure there are enough goods to meet the demand
  • Speed up deliveries to customers.
slide6

WHAT ITEMS ARE RECORDED?

  • Equipment, such as static machines
  • Tools, such as hammers and spanners
  • Packaging, such as bubble wrap or boxes
  • Spare parts, such as extra cutterblades for machines
  • Accessories, such as door handles
  • Other consumables, such as nails and screws.
slide8

HOW IS STOCK CONTROLLED?

Systems can be:

Paper based, such as hand written stock cards or sheets

Computer generated.

  • Stock control records should contain:
  • a description of the goods
  • details of where the goods are stored or located
  • the amount of goods currently held
  • details about the movement of the stock
slide9

DOCUMENTS AND FORMS

  • Used to control stock include
  • Purchase requisitions
  • Purchase orders
  • Delivery dockets
  • Invoices
slide10

PAPER BASED SYSTEMS

Some of the typical ways of keeping a paper based system up to date involve the use of:

Job cards - Job cards are used as a means of keeping account of the amount of goods you have produced.

slide11

STOCK CARDS

Stock cards – use minimum/maximum stock levels.

Stock cards are used to monitor the amount of raw materials that are used.

  • When using this system, you need to consider:
  • The time taken for delivery
  • Reliability of suppliers
  • Importance of the stock item.
slide13

REQUISITION BOOKS

Requisition books are used to request an order to be raised for materials. A duplicate of the requisition is then forwarded to the purchasing department.

This system works well if the employees are vigilant toward maintaining stock.

A requisition is NOT an order for product.

slide14

DELIVERY DOCKETS

  • Delivery dockets are used to account for and record:
  • inward goods – materials coming in
  • outward goods.- product going out
slide15

CUSTOMER ORDERS

Orders from customers are received, - lists of raw materials needed is raised

When using this method, consumables are not indicated.

Disadvantage -work cannot start on the customer order until the stock arrives.

Advantage - you don’t spend a lot of money on stock with the risk that you may not use it. You can use customer deposits to fund materials.

WHICH SYSTEM DO YOU USE?

slide16

COMPUTER GENERATED RECORDS

  • Computers help to:
  • eliminate extra paperwork
  • centralise stock control
  • generate orders automatically
  • save time.
  • Computers can
  • enter stock data manually
  • entering data with bar code readers
  • scanning documents, such as invoices
slide17

COMPUTER GENERATED RECORDS

  • All of the following information can be produced by computer.
  • Invoices.
  • Orders.
  • Supplier lists.
slide18

DATA ENTRY

  • The computer application can then:
  • Check to see if the stock is on hand
  • Produce an order for more stock
  • Place an interim hold on the stock
  • Produce a job card
  • Produce working drawings
  • Produce delivery dockets and invoices
slide19

BARCODE SYSTEMS

  • This system can be used for all sorts of stock items, such as:
  • Boxes of nails
  • Loads of timber
  • Containers of adhesives
  • Paint
  • Boxes of fittings and accessories.
slide20

BARCODE SYSTEMS

  • Barcodes are attached to all goods or groups of goods and can contain a whole range of information, such as:
  • Quantity
  • Price
  • Size
  • Type
  • Supplier name
  • Date of expiry, if applicable.
slide21

SCANNING

  • A scanner is a piece of equipment that acts like a photocopier and can:
  • be used to copy a paper invoice or order.
  • transfer this copy to the computer for storage and easy access.
  • have text recognition, so the information can be interpreted and processed by the computer automatically
stock control without records
STOCK CONTROL WITHOUT RECORDS

Detailed records of stock movements and levels may not always be necessary:

  • in small businesses – owner/operator looks after all stock control issues
  • in businesses such as prefabricated or made-to-order products.
bin systems
BIN SYSTEMS
  • Bin systems can replace formal stock control records.
  • Single bin, two bin and three bin systems
imprest systems
IMPREST SYSTEMS
  • In an imprest system, an upper limit is set for inventory items in stock and orders are placed to bring the inventory back up to this level. This level equals the quantity necessary to:
  • provide supplies to cover delivery time
  • maintain supplies to cover the review period.
stocktaking
STOCKTAKING

Stocktaking is the process of counting the amount of materials and goods the company has on hand.

Physical stocktakes are important so you can identify:

  • discrepancies between what is ordered and what is received
  • discrepancies between prices paid and value received
  • patterns of usage.
slide26

STOCKTAKING

  • Stocktakes are usually held at least twice a year,
  • Important points to remember when stock taking:
  • Count everything
  • Use stock recording sheets and stickers so things aren’t counted twice.
  • 3. Electronic recording devices make it much faster
slide27

SUMMARY

  • The more efficient the control of stock is, the less will be wasted or stored unnecessarily.
  • Good stock control:
  • Saves time
  • Saves money
  • Makes sure the workplace is more efficient.
  • You can use paper based and computer based stock control methods to:
  • Record the movement of stock items
  • Maintain stock lists
  • Adjust levels to meet demand.
slide28

Your companies name

Order No:

Supplier:

Delivery address:

Date of order:

COD/30 Days

Courier ?

Quantity

Order maker

Litre / sheets

C grade 12mm 7 ply

2400x 1200

Special Instructions

Costs and charges

Authorising signature and date