IMPORTANCE OF STOCK CONTROL TO BUSINESS ORGANIZATIONS

IMPORTANCE OF STOCK CONTROL TO BUSINESS ORGANIZATIONS

For many  years now a lot of manufacturing company does not know  the important of stock methods and even when they know, it is not consciously handle or put in the care of professional. Infact, they belief that the stock control methods is not the ultimate things the organization desire this means the contribution on effective stock control  can make to the success of an organization still not very widely appreciated and hence it is of great significant to reflect the  impact and  effective and efficient stock control would have on an organization as well as the profitability level of the company.
The fundamental point about stock control is that by the very nature of it’s operation, every items of the store receives individual attention. The stock is the key element of working capital which has the power to influence the future of the company either positively or negatively and the effect is said to prevail over the other when it is not highly controlled. Where an organization materials are not systematically controlled, it can result to unnecessary trying up capital in stock and losses through breakage, pilferage, deterioration, theft, obsolesce etc. Beside, any organization which of stock out control stock is always faced with the problem of stock out in which may cause hold up in production service and sales, the staff become idle mean while salaries still have to be paid. Effective and efficient stock control will go along way in preventing loses and waste as such increase the point level of the organization.

Infact a slide percentages increase in efficiency a stock control will amplifies the profitability level. Since stock is often regarded as a life wire or life given element of an organization, the control of stock therefore is highly significant and should start   right from the time the need is identified to purchase order expediting. Receipt and inspecting storage and issue so that services will be rendered in the most effective manner and  at the lower possible cost. The achievement of the potential benefits that are there in an efficient stock control system will only be possible if any one when store personal are well trained in their profession make available necessary material handling equipment and  above all ensure an effective secure o the stock card, store house,  store personnel  as well as the keys to every entrance.

In September, 1969 the federal military government decided to merge the (ECN) Electricity Corporation of Nigeria and (NDA) Nigeria Dams Authority into a single body to avoid duplication for resources in the two organizations.

A year later, a Canadian firm of consultants (Shansimont Ltd) was appointed to look into the technical detail of the merger. The report was submitted in 1974.consequently a decree merging the two organizations in the National Electric power authority (NEPA) is to develop in efficient, coordinated and economical system of electricity for all parts of the federation.

IMPORTANCE OF STOCK CONTROL TO BUSINESS ORGANIZATIONS