NEED FOR EFFICIENT STOCK CONTROL IN AN ORGANIZATION

NEED FOR EFFICIENT STOCK CONTROL IN AN ORGANIZATION

ABSTRACT

For any organization to be successful, it will take the issue of efficient stock control serious. It has been stated clearly that the need for efficient stock control in any organization is necessary. Therefore, management of any organization should know that inefficiency procurement of materials can seriously affect the financial health of the organization resulting to its closure. Purchasing as has earlier stated is the hub of any business organization. so to decentralize the function of purchasing is to deny a firm some of its potential profits. But centralization of purchasing function is essential for the attainment of both optimum operating efficiency and maximum profitability. A company’s purchase should motivate its stock control with other staff. Finally, if this procedures is followed, purchasing objective will be ensures it term of obtaining material of the right quality and right quality of the material from the right source, at the right time and place for effective stock controlling. Therefore, this research concentrates on the need for efficient stock control in an organization and suggested possible ways to improve efficient stock control in any organization.

CHAPTER ONE

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
For an organization to be successful, it depends on the efficient control of stock in that organization. Therefore, for the study of purchasing and supply management to be complete, there must be efficient control of stock. Store management is very closely liked with product and distribution and is a much neglected area of business study. Yet stock control is a vital part of all industrial organization, and it must be design to suit the particular needs of the organization it sation and it service. Stock control is set up in any organization to assist in the production of goods and services and no industrial unit or public undertaking of substantial size can be efficiently manage without it. The basic aim of every efficient manager is to reduce the time and labour involved in each operation to the absolute minimum consistent with maintaining the required quality.
According to (BIM 1952), stock control represent the clerical control of the movement of materials into an out of stores, and of the level of stocks in the stores at all times with due regard to the economy in storage as weks as on ordering cost, purchase price agreed, and the level of organizations working capital.

NEED FOR EFFICIENT STOCK CONTROL IN AN ORGANIZATION