NEED FOR STOCK CONTROL AND STOCK KEEPING IN AN ORGANIZATION
CHAPTER ONE
INTRODUCTION
Stock control management and stock keeping comprises the policies and procedures which systematically determine and regulate which or what item are hold in stock and what quantities of item are held and to take the record of what or item in the stock. In industry as well as in the public sector organization, the “stores” has remained as one of the production department, and storage, whether of raw materials, partly processed work or finished products is part of the sequence of operations both cherical and physical, which starts as soon as the customers order or management decision to manufacture and completed by the dispatch of the finished product.
In industries where operation takes the place of manufactures the principles and procedures are eseatly the same. Stock control and stock keeping management can be defined as the act of managing stock in term of physical assets and production item. It also means the manner in which stock are organized in an undertaking a local authority or in the aimed force. The management of stock is therefore the responsibility of the stores manager or any such other designated specialist. This is also in line with the view of G.W. Aljian where he said in discussing the organization of duties for a mining concern, one of the success of minies was the store man who selected purchased receivers and delivers all article required stock control has much been neglated in some manufacturing companies in Nigeria and this has resulted in lower annual profit or even the total closing of the factories in support of this culvent said a member of management has to accept full responsibility for stock because historically, it faild to understand the requirement of stock and has denile stock personnel the right to think constructively”.
The stock control for which the store manager has over all responsibility is avital part of many organizations. The stock manager work varies considerably in scope depending if he is working for a single shop retailer, small multiple shope, a large chain of stores etc. It will therefore be importance to defined which is the stores management basic function, having outlined these, the next question that may reality come to mind it, what is the purpose of stock control? Stock control according to Morrison is process of marketing available the correct quality and quality materials as when required with due regard to economy in storage and order in cost, purchase price and working capital. No industrial unit public undertaking of subalantia size can manager efficiently without stock control and it must be fully recognized by all concerned. Handling material, which is one of the activities in store house and stockyard, is a costly operation and therefore needed efficient equipment the types of equipment used depend on the nature of the business the types or kinds of stock carried and the size of the accommodation. Some factor that affects the effective handling of material must be borne in mind when considering the types of requirement to be used some of the factors according to morrision in “storage” and control of stock includes.
- Position of the warehouse
- The cause of manual handling
- The movement of packaging income materials, economy of movement and the selection of suitable machine etc. Stock keeping has do with buying in bulk of raw materials and to help stock level. There are reasons for keeping stock time.
- The time lags present in the supply chain from suppliers to user at over stages requires that you maintain certain amount of inventory to use in this lead time” uncertainly-inventories are maintained as butters to meet uncertainties in demand, supply and movements of goods.
Economics of scale-ideal condition of “one unit at a time at a place where user needs it when he needs it” principle tends to income lost of cost I terms of logistic so bulk-buying movement and storage brings in economics of scale, thus inventory. There are many types of stock but the three distinct ones are, pre-production, in-production ad post-production. These types have different method of control because of their nation. The basic features all stock control system is that they are system designed to maintain supply by maintaining stocks and new order are mandated automatically by change in the stock level. Every time the stock drop to re-order as issued for a further supply. There are basically three main system of control.
1. A continuous stock control system
2. A periodic stock control system
3. A programmed order system.
The basic method of controlling stock by quantity is by means of fixing for each commodity stock level which are noted on the stock records subsequently used as a means of indicating when some action, is necessary. The activities involve in stock, control management and stock keeping is much not to talk about this benefit that will occur when it is properly operated. It is in this spirit and recognition at the import and role the profession will play in man power development of the country that the federal ministry government granted indisputed recognition of the Nigeria institution of purchasing and supply management to enroll and register both minitary personnel and student in higher institution of learning in the country for the London examination of institution of purchasing and supply management.
1.1 BACKGROUND TO STUDY
The background of study of this project under the importance of store keeping and stock control in a manufacturing organization this is all about to study and research of how important and their helping hand in so many manufacturing organization how they can apply and their duties productivities, base on without them there is no how an organization can function well to attain or achieve their set objective and goals. In nutsell and finally background study of the importance of storekeeping and stock control is stipulated and stimulating department in manufacturing organization that involve or comprises the policies and procedures which systematically deter. Mine and regulate which or what items are held in stock and what quantities of item held and to take the record of what or item in the stock.
In industry as well as in the public sector organization, the “store” has remained as one of the production department and storage, whether of raw materials, partly processed work or finished products is part. The sequence of operations both clerical and physical, which starts as soon as the customers order or management decision to manufacture and is completed by the dispatch of the finished product. So the historical background of this study is to let us know and to put in practices when we employee as store manager in any organization or manufacturing organization. The loopholes to be filled in management of stock need to be taken care of the research fell that through this mediums they can suggest the right professional techinghis suitable for stock control, and store keeping in all sector of the economy.
1.2 STATEMENT OF PROBLEM
Manufacture companies most times experience and or pass through the difficult rigors in receiving their raw materials and items of equipment at the actual time. They need it at reasonable price and of the right quality. Problems associated with effective and efficient procurement of material and items of equipment are:
1. Difficulties associated with determination of optium stock level to maintain.
2. Problem of determining the right time to order for materials and equipment.
3. The problem fluctuation in price of material.
4. Inadequate knowledge of storage management which results in efficiency and ineffectiveness.
5. The difficulties of not being able to select the right pant and equipment for its operations.
6. The problem of inefficient inventory planning, controlling and keeping.
1.3 OBJECTIVE OF STUDY
The main purpose of this study is to establish analysis and highlight the importance of stock control and stock keeping for manufacturing organization concers and why it should be given a serious attention in the manufacturing industries.
Secondly is to make explicit that inventories needed for manufacturing purpose are made available in the right quality and quantity at the required time and place.
Thirdly, is to ensure that inventory is kept a practical minimum as possible in order to avoid excess inventory with its attended losts.
Fourthly, to certain the laliber of staff that carries outs the purchasing and store activities including the inventory management. These activities or functions may include purchasing traffic, store and receiving inventory control in addition, to ascertain the inventory control systems use or adopled by most manufacturing companies concern what that will execute by the duties of storekeeping and stock control in order to achieve organization objective or goals. Finally is to find out the importance of stock control and stock keeping in a manufacturing company concern it is duties of stock control and stock-keeping to know how their store operation look like it is of a standard that will help in the attainment of the organization goal.
1.4 THE RELEVANCE OF THE STUDY
The relevance of this research or stock control and stock keeping in a manufacturing companies is aimed at identifying to all the manufacturing companies and to attribute the finding to other institution and organization. The cooperate to be filled in the management of stock need to be taken care the researcher feel that through this medium, they can suggest the right professional techniques suctable for stock control, and stock keeping in all sector of the economy finally, the studly is a prerequisite for the award of Ordinary National Diploma (OND) in purchasing and supply management.
1.5 THE SCOPE OF STUDY
This research work covers stock control and stock keeping for the manufacturing companies or manufacture sector (industry) base on the effectiveness of stock control and stock keeping and the respond that comes from the most manufacturing companies, the practice of inventory management as in stock control and stock keeping shall be concentrated on a manufacturing organization. To ascertain the principles of inventory management being used by the manufacturing companies to effectively and efficiently attained the organizational goal.
1.6 THE LIMITATION OF STUDY
As a result of time factor, combining classroom lectures with the research process was not easy to come by and more over, the researcher was faced with some problem during research process, these include the following.
1. Poor responses: The respondents I meet during the inter view were not all that cooperative to my question, this made the data gathering process difficult.
2. Time: There was no enough time for the research to conduct the research work properly.
3. Money lock of adequate and enough funds limits the research efforts.
4. Distance: The distance of the going to internet, various companies was very far and this created obstade as effort are being made to present good project at the end.
