THE IMPACT OF EFFICIENT STOCKEEPING AND CONTROL IN AN ORGANIZATION

1.0 Introduction

For an organization to be successful, it depends on the efficient control of stock in that organization. Therefore, for the study of purchasing and supply management to be complete, there must be efficient control of stock. Store management is very closely liked with product and distribution and is a much neglected area of business study. Yet stock control is a vital part of all industrial organization, and it must be design to suit the particular needs of the organization.

Stock control is set up in any organization to assist in the production of goods and services and no substantial size can be efficiently manage without it. The basic aim of every efficient manager is to reduce the time and labour involved in each operation to the absolute minimum consistent with maintaining the required quality. Bin (1952: page)

According to (BIM 1952) stock control represents the clerical control of the movement of materials into and out of the stores, and of the level of stocks in the stores at all times with due regard to the economy in storage as well as on ordering costs, purchase price agreed, and the level of organizations working capital.

The stock control process focuses attention on factors related to time utility location, quality and quality of materials used by the operations of the organization.

1.1 Background of the Study

Rokana Industry Owerri

Rokana Industry Industry was established in the year 1998 by the Former Manufacturing Association of Nigeria (MAN) President,Engr Charles Ugwuh.The company is into manufacturing and production of goods and services. Its coporate headquarters is situated at Victoria Island Lagos with manufacturing units situated at different parts of country which includes Owerri,P.H, Onitsha and recently Enugu.

They produce good quality beverages and confectionaries for daily consumption.They produce quality Post-boards,Companies adverts Postboards,Posters etc.Also ,they are into Plastic/Polymer Productio.The number of Rokana Products sent to market, in doubt has made tremendous impact on the reduction of the micro economic variables problems in this country through generating to our economy, creation of job opportunities etc .Efficient Stock keeping has significantly improved profitability and productivity of Rokana Industry.

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1.2 Statement of the Problem

The efficient of stock control in an organization is so vital in both large and small firm upon the efficient of stock control. The researchers, in carrying out this research work were able to identify some problems that hinder the progress or smooth control of stock in an organization. Some of these problems are identified below:

1. The method of sources of information used in the organization in terms of checking the control of stock is not encourage able in the sense it was done without considering if the individual has the capacity.
2. Professionals were not employed in the purchasing department and this makes the strategies involved in the efficient control of stock not to the work or job were not well trained.
3. The efficient stock control records are not properly kept and this makes the stores manager/keeper to be very active.
4. Another problem which hinders the progress of stock control in an organization is the type of materials purchased by the procurement manager. This implies that the material might be in a bad shape, thereby stops the smooth running of the organization.
5. Finally, the stock held in stock for so long can also cause a problem in controlling the stock in an organization. This means, the stocks are not supposed to be keeping in the stores for so long before that are dispatched to be they are needed.

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1.3 Objective of the Study

Obviously, every organization, according to carter (1982:31) has its own needs and requirements which have to be met by its stock control system. However, if we look at stock control in terms of the average medium size production and distribution organization we will obtain a complete in selecting and operating stock control methods control the level of stocks, the stock controller of the organization is seeking to achieve the following fundamental objectives.

1. To stress on the importance of stock control in an organization, thereby motivating the management to develop interest on the stock control function.
2. To highlight on the need of employing young and energetic employees for the purpose of stock control operations.
3. To lay emphases on the importance of employing a workers of technical know – how on the current advancement of technology e.g. computer.
4. Employing people with business experience knowledge for the purpose of transacting effective with suppliers and other department in another objective.
5. To ensure that there is efficient and effective control of stock in the organization.
6. To control the inflow and outflow of the materials held in the organization.

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1.4 Significance / Relevance of the Study

The relevance of the stock control in an organization to know the various ways of controlling the stock held in there firm/organization.

Stock control is an important aspect of business management and must not be neglected by management. This is so because any management that neglects it control of stock will generally reduce its profit potential or even the level of service provided, shortage in inventory and as well as tools, for instance, will interrupt production, rendering machines and labour force idle and will further lead to losses in sales revenue.

In the same manner, if there is an unintentional excess buying and over stocking of materials in inventory, the organizations fund will be tied up in stock and will represent cash that would have been used for other purpose.

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1.5 Research Question

In other to make a complete investigation of subject matter, the researcher has come out with the following question; thus:

1. Does store department have adequate number of staff?
2. Does your organization adopt any method to supply requirements of materials without holding stock?
3. Do you find out reason why customer waste much time in the company?
4. Does your organization control their stock?
5. What are the tools for stock and material control?
6. What are the process and procedures for stock control?

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1.6 Scope of the Study

In industries as well as in the public sector organization, the “stores” has remained as one of the production departments, and storage, whether of raw materials, partly processed work or finished products, in part of the sequences of operations both clerical and physical which starts as soon as the customer's order or management decision to manufacture and is completed by the dispatch of the finished product.

The major aim of every efficient manager is to reduce the time and labour involved in each operation to the absolute minimum consistent with maintaining the required quality so as to achieve minimum output and reduce manufacturing cost. In treating the stock control as an operation, the manager must have similar objects in minds, his aim in this regard to ensure that every piece of material, whether raw or worked, coming into ant store, shall stay therefore as short a time as possible before moving either out into the factory to be processed, or, in the case of such things spares, tools or building materials, into use.

The essential qualifying condition here is that stock must be maintained just high enough for a constant supply of materials or components to be available when required.

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1.7 Limitation of the Study

An investigation of this kind is confronted with several limitations, its limitations; its limitations are as follows.

Financial Problem:

Financing this project has been a trying experience, because of the prevailing economic condition in the society. So, the researcher is unable to travel and cover many places of interest in order to gather comparable data or information for the research work.

Limited Time Factor:

Due to the schedule of academic activities for every final year students both in ND's of the polytechnic is lactic, the researcher needs to attend classes, read other courses that is related to her course of study, collect data/information from other polytechnics which she would have loved to do but due to limited time factor, the researcher was unable to so.

Natural Factor:

This also a hindrance to the study. These projects work is disturbed from effects of regular rainfalls and hot whether wind thereby, hinders the researcher's movement in her bid to collect data/information and distribution of questionnaires to respondents.

Transportation Problem:

The researcher was also confronted with transportation problems. She wasted so much time on the road or on the vehicles boarded, and thereby making her to reach her place of choice to get information from the school libraries.