Need For Effective And Efficient Stock Control In An Organization

1.0 INTRODUCTION
Production operation will highly be hampered if the stores functions are not properly and effectively carried out. The basic stores functions is that of holding stock, thus, the need for proper stock control an becomes imperative.
Stock control in an organization involves activities designed towards the effective management and control of all inventory items held in stock. Stock control can be further defined as “a means by which materials of the correct quantity and quality is made available as and when required, with due regard to economy in storage and ordering costs, purchase prices and working capital” from the above definition, it could be deduced that stock control is a system aimed at maintaining a balance flow of materials by properly arranging, in a continuous basis, receipts and issues so that at any given time, the stock balances are adequate to meet current operational requirement.
Stock control, however, involves the actual implementation and carrying out policies which management has established to regulate and maintain adequate stock balance without excess or deficiencies.

1.1 BACKGROUND OF STUDY
For an organization to be successful, it depends on the efficient control or 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 designed to suit the particular needs of the organization, it station and it service. Stock control is set up in any organization to assist in the production of goods and services and no industrial unit or public undertaking of substantial size can be efficiently managed without it. The basic aim of every efficient manager is to reduce the labour involved in each operation to the absolute minimum consistent with maintaining required quality.
Stock control represents the clerical control of the movement of materials into and out of the stores, and the level of stock in the stores at all times with due regard to the economy in storage as well as an 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.

1.2 THE 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 identity some problems that hinder the progress or smooth control of stock in an organization. some of these problems are identified below.
a. The method of sources of information used in the organization in terms of checking the control of stock is not encourageable in the sense it was done without considering if the individual has the capacity.
b. Professionals were not employed in the purchasing department and this makes the strategies involved in the efficient control of stock not achievable because the staffs employed to do the work or jobs were not well trained.
c. The efficient stock control records are not properly kept and this makes the stores manager/keeper to be very active.
d. 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 materials might be in a bad shape, thereby stops the smooth running of the organization.
Finally, the stock held in stock for so long can also cause a problem in controlling the stock in an organization. this means, the stock are not supported to be kept in the stores for so long before that are dispatched to were they are needed.

1.3 THE OBJECTIVE OF THE STUDY
Obviously, every organization, 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 picture of stock control and its objectives. In selecting and operating stock control methods to control the level of stock, 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 energetic employees for the purpose of stock control operations.
3. To lay emphases on the importance of employing a worker 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.

1.4 RESEARCH QUESTION
In other to make a complete investigation of object matter the researcher has come out with following question, thus.
1. What method an organization adopts to supple requirements of materials without holding stock.
2. How does an organization control their stock.
3. What are the tools for stock and materials control
4. What are the tools for stock and procedures for stock control

1.5 SIGNIFICANCE OF THE STUDY
It is hoped that this study will be of great benefit to students in the polytechnics, Universities, Tertiary institutions, the state and the general public. It is expected that the study would help to improved the effective and efficient control of stock in an organization.
The study will significantly define the importance of stock control in an organization. it will help to find answers to the numerous issues that have hindered the effective and efficient stock control in an organization.
The study is assumed to offer suggestion and remainders on way of improving the control of stock in an organization. it will identity the neglects and failures of stock control systems, levels or techniques in an organization.

1.6 THE SCOPE OF THE STUDY
In industries as well as 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 customers 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 involves in each operation to absolute minimum consistent with maintaining the required quality so as to achieve minimum output and reduce manufacturing cost.
In treating the stock control manufacturing, the manager must have similar objects in mind, his aim in this regard being to ensure that every piece of materials whether raw or cooked, coming into the 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.

1.7 THE LIMITATION OF THE STUDY
An investigation of this kind is confronted with several limitations, its limitation are as follows:
a. Financial Problem: financing this project has been a trying experience, because of the prevailing economic condition in the society so the research is unable to travel cover many places of interest in order to gather comparable data or information for the research work.
b. 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 sources that is related to her course of study, collect data/information from other polytechnic which he would have loved to do but due to limited time factor, the researcher was unable to do so.
c. Transportation Problem: The researcher was also confronted with transportation problem. He wasted so much time on the road or the rehide boarded, and thereby making him to reach his place in choice to get information from the school library.

1.8 DEFINITION OF TERMS
For purpose of charity and proper understanding of this study it is necessary that the following concepts be defined.
STOCK CONTROL
A systematic operation of continuously arranging receipt and issues so that stock balance are adequate to supply the current rate of consumption without experiencing deficit or carrying to much excess stock.
ORGANIZATION
A group of people who form a business, club, etc. together in order to achieve a particular aim.
OBJECTIVE
Clearly set out goals to be achieved by the organization
EFFECTIVE
Producing the result that is wanted or intended, producing successful result.
EFFICIENT
Doing something well and thoroughly wish no waste of time, money or energy