STOCK RECORDS – ISSUING AND CONTROL
Reason for developing an efficient and effective control system are as follows:
- Shortage or poor stock rotation will reduce standards and therefore directly reduce revenue.
- When supplies are lacking items may need to be borrowed from other sections.
- Excessive stock may constitute a safety risk and reduce cash flow.
- Losses may occur will must be identified, caused established, and controls implemented.
- Good storage control is necessary ti implement health and safety procedures eg. Care for substances hazardous to health safe procedures.
- Monitoring of use and product evaluation is better achieved.
- Budgetary control is facilitated.
- Standardization of quality is facilitated.
STOREKEEPEER: The storekeeper plays a very important role in the control of stock and the smooth functioning of the day to day operations. The storekeeper must have:
- A good technical knowledge of the products especially the shelf life of the products.
- The ability to deal with suppliers, own staff, and personnel from other departments as well as the management.
- The ability to count and measure accurately and keep up-to-date record on costs and level.
- Knowledge of up-to-date legislation e.g. health and safety legislations.
- Absolute honesty and trustworthiness in all dealings.
Stores and stock control involves:
- Ordering
- Delivery of goods
- Storage
STOCK RECORDS:
An essential part of the storage function is the maintenance of clerical records to record all stock movements accurately in and out of the stores. The system used will depend on the type and size of the establishment. Upon arrival at the stores all goods must be recorded and added to the original stock “goods received books”.
- Bin card: It is a record of all the receipt and issue of a particular item and is either attached to the particular books or kept in a file.
- Monthly consumption sheet: to find out the total of items used over a period of time or to compare usage rate the information can be taken from the sheet.
Stock taking: It may be done monthly or quarterly or yearly depending on the policy of the establishment. It is an essential process to prove the accuracy of the stock records and should be carried out by the departmental head or an external auditor. In order to carry out stock taking it is necessary to suspend all movement of goods during the count and to make sure that all goods are checked and accounted for. Any discrepancy should be noted and investigated wherever necessary. Issuing: The system of issuing goods from the stores in various departments will vary but a right system of issuing should be in operation. All issues should be made against requisition or specification for ease of control. In various departments forms items should be checked and weighed accurately before the order is made ready for dispatch. In some establishments stores may be issued daily, weekly, or monthly by a topping up system to meet a required basic stock imprest system. New for old, or full for empty: Whichever system is used spot checks should be made by the supervisor to check usage rate and prevent wastage and pilfering. Staff should be discouraged from ordering more than is actually required, and issue should be permitted only on the stated day or time unless there is an emergency.
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