Project Materials

STOCK CONTROL AS A MANAGEMENT TOOLS FOR EFFICIENT AND EFFECTIVE STORES OPERATION

ABSTRACT

Stock control has been a neglected role in an organisation because most organisations, both public and private, lack professionals in the field who are capable of carrying out a competent stock system. This work, titled ”stock control as a management tool for effective and efficient store operation,” demonstrates that an ineffective stock control system has a significant impact on the organization’s profitability. The primary goal here is to provide a consistent and uninterrupted flow of materials inside an organisation. To do this, the work was separated into five chapters. The first chapter contains the work’s introduction, which is followed by the problem description, study objective, scope and significance, study limitation, and definition terms. The second chapter discusses a survey of contemporary literatures, including the need for stock control, motivations for holding stock, factors influencing the level of stock retained, the cost of stock control, and so on. Chapter three discusses the research technique and design. Chapter four focusses on data presentation and analysis. Chapter five includes the summary, conclusion, recommendation, and bibliography.

CHAPTER ONE

INTRODUCTION

1.0 Background of the Study 

Effective and efficient store operation is inextricably tied to production and distribution, and it is a mostly overlooked area of business study.

However, the store function is an essential component of all industrial organisations, including public and private utilities, federal, state, and local governments, and armed services, and it must be tailored to the specific demands of the organisation it serves.

A store is defined as any space reserved and equipped for holding materials that are awaiting dispatch to customers for further processing of final consumption. In most organisations, stores are a place where all types of equipment, materials, components, and supplies required for production, distribution, maintenance, packaging, and so on are received.

Stored and distributed to users. To guarantee that the store runs smoothly and efficiently, a stock control system should be implemented. In today’s competitive market and unstable economic conditions, cost containment is the difference between profit and loss.

The overarching corporate purpose is to maximise profit margins while minimising production costs, which has driven many executives to take actions in all aspects of their firm to reduce material or stock costs from a significant portion of an organization’s total investments.

This is primarily because, regardless of the type of industry an organisation works in, whether merchandising or manufacturing, there must be a enough supply of supplies to keep the enterprise running.

A manufacturing company, for example, cannot function without raw materials, purchased parts, intermediate parts, subassemblies, and final goods ready for transportation and sale.

Stock control affects not only individual businesses but also the economy as a whole, as stock is held until it is needed for production. A previously said that it does not immobilise capital resources but can build inventories. Inventory resulting from a decrease in stock owing to a decrease in sales may set off a long chain of reactions affecting the entire system.

Thus, effective stock control not only benefits the firm, but also influences the overall profitability of the nation’s economic development.

I have attempted to look into books and study work done by others to obtain knowledge on areas in which the stock controller or manager, as the case may be, should be watchful in order to effectively use stock control as a management tool for effective and efficient store operations.