Lesson 1, Topic 1
In Progress

2.2. The importance of quality, quantity, time, price and source in managing stock are explained with examples.

ryanrori January 14, 2021

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Control the quality of your stock

Quality control is a vital aspect of stock control – especially as it may affect the safety of customers or the quality of the finished product.

Efficient stock control should incorporate stock tracking and batch tracking. This means being able to trace a particular item backwards or forwards from source to finished product, and identifying the other items in the batch.

The British Standards Institution (BSI) has a scheme to certify businesses that have achieved a certain standard of quality management. Achieving the standard is one way of showing customers and regulators that you take quality control seriously

The rate of stock turnover for a business unit is calculated and an indication is given of how knowing turnover assists in planning. 

Stock control administration

There are many administrative tasks associated with stock control. Depending on the size and complexity of your business, they may be done as part of an administrator’s duties, or by a dedicated stock controller.

For security reasons, it’s good practice to have different staff responsible for finance and stock.

Typical paperwork to be processed includes:

  • delivery and supplier notes for incoming goods
  • purchase orders, receipts and credit notes
  • returns notes
  • requisitions and issue notes for outgoing goods

Stock can tie up a large slice of your business capital, so accurate information about stock levels and values is essential for your company’s accounting.

Figures should be checked systematically, either through a regular audit of stock – stocktaking – or an ongoing programme of checking stock – rolling stock take.

If the figures don’t add up, you need to investigate as there could be stock security problems or a failure in the system.