Proper stock control administration is an essential requisite for any small business.
Stock control plays a crucial role in the daily operation of a small business. There are a number of administrative tasks associated with stock control which, depending upon the size and complexity of the business, are either part of an administrator’s duties or carried out by a dedicated stock controller.
Why is Stock Control Important?
When it comes to small businesses, many of them sell products which are either made in house or supplied from elsewhere. There is a risk here of losing track of the stock available, which can lead to missed orders if sufficient stock isn’t at the immediate disposal of the business.
The role of stock control shows how much stock you have at any given time, and provides details of the system employed to keep track of stock at every stage of the production process.
How is Stock Control Implemented?
When it comes to administration of stock control, it is important to have different staff responsible for stock than the ones responsible for finance. This is for security reasons and serves as a preventive measure against fraud.
A range of paperwork associated with stock needs to be processed in order to properly maintain a stock control system. This typically includes delivery and supplier notes for incoming goods, and requisitions and issue notes for any outgoing goods. Further, purchase orders, receipts, credit notes and return notes also need to be maintained and processed.
Methods of Stock Control
There are a variety of systems available for the purpose of stock control in a small business. The most commonly used is the traditional paper based system. This can be very time consuming and provides records which are inflexible and lack the level of information a computer-based system can provide.
If the stock control system is simple, it can be built simply on spreadsheets or some other computer database. For more complex systems, a computer software purchase might be required. These can be bought off the shelf, but the software generally costs thousands of dollars and might be too expensive for a small business.
An alternative to computer software is online systems which are not only more cost-effective, but also allow small businesses to access and monitor their stock information from anywhere they want.
Maintenance of Stock Control
Once any of these stock control systems has been set up, it is important for the figures to be checked systematically. This can be done through “stocktaking,” whereby an audit of stock is conducted on a regular basis. Alternatively, “rolling stocktake” can be employed through an ongoing programme of checking stock.
This is to be constantly on the lookout for any instance where the figures do not add up. Any such event might be indicative of security problems or a failure in the system and needs to be properly investigated.