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The Stores Function

The Stores Function. Temporary location for materials needed for operational purposes. Obsolete, redundant and surplus stock is simply money sitting on the shelf. This requires more money for its custody. Goods should be stored for the shortest possible time. The Stores function.

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The Stores Function

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  1. The Stores Function • Temporary location for materials needed for operational purposes. • Obsolete, redundant and surplus stock is simply money sitting on the shelf. • This requires more money for its custody. • Goods should be stored for the shortest possible time

  2. The Stores function • High demand goods – shortest period on shelf • Unpredictable demand- store for longer periods. • Since stock ties up large sums of money, it is essential to organise stores so that investment is kept at minimum

  3. Stock Control • Most problems occur because insufficient time is given to staff to complete the task.

  4. Store keeping • Procedures whereby goods are received, identified, stored, issued, accounted for, and replenished in accordance with defined level of service and OHS.

  5. Check carton quantities and sign for delivery. Only authorized persons to sign. Goods should be checked for quantity and quality. Quality check marks or faults on products. Label not attached properly Leakage from containers broken seal poor condition of packaging. Stock Control - receipting

  6. Perishable goods should be tagged with date received. Meat should be weighed and temperature checked. Delivery personnel not allowed in stores. Receipt of Goods

  7. Receiving goods Spot check temperatures of goods delivered. • Meats 2 - 4o C • Seafood 1- 2o C • Dairy 2 - 4o C • Fruits and vegetables 5 - 7o C • Frozen goods : minus 18 oC

  8. Stock Control • Safe handling and storage is important • Minimize accidents and damage to stock. • Minimize loss from deterioration • Rotate stock “first in first out”FIFO

  9. Dating and pricing • Date and mark current purchase price of goods. • This helps in stock rotation, FIFO. • This routine is time consuming. • Meat is tagged with a two part tag- one is attached and other is passed to cost control department.(helps establish better FIFO)

  10. Stock Records • Manual or electronic. • Manual- Inventory or bin cards • All incoming stock is added to total on hand and reduced as stock used. • Physically counting stock on a regular basis(weekly or monthly)

  11. Stock Records • Electronic • Point of sale linked system to give immediate information on all aspects of stock. • Some systems are capable of ordering when stock reaches a minimum level(PAR)

  12. Stock Taking • Verify accuracy of stock records. • Support value shown in books by physical verification. • Disclose possibility of fraud,theft or loss. • Reveal weakness in system for custody and control of stock.

  13. CREDIT NOTE • Shortage due to stock delivery being short. • In this case a claim should be made to the supplier for a CREDIT NOTE. • Credit note covers goods that have been invoiced or paid for but did not arrive.

  14. Stocktake • Physical stocktake is a true measure of stock on hand and allows any differences to be adjusted in the computer. • Book stock is the estimated stock on hand without a physical stocktake. • Add purchase to opening stock and deduct usage

  15. If physical stock figures are less than computer records than you have a If physical stock figure is more than computer records than you have excess- this also must be investigated. (May be an order was not entered in computer) Stock Records SHRINKAGE

  16. Documentation • Purchase Requisition • Purchase Order • Delivery Docket/Suppliers Advice Packing note/Consignment note • Invoice • Statement • Cheque Requisition

  17. Stores requisition Requirement voucher Stores indent Issue voucher Stores order Demand note Kit marshall note Picking note Stores schedule Issuing documentation

  18. Bin Card

  19. Par Stock Method • Level of stock needed on hand to maintain continued supply. • Items needed between ordering. • Bars have a certain stock level. • Replace every empty bottle to maintain the par level. • Count on hand and subtract from par level to establish re-order from stores

  20. Par Stock Method (CONTINUED) • SKU stock keeping unit • UPC universal price code

  21. Elements of stock control • Stocktaking • Ordering • Receiving • Internal orders • Returns • Sales

  22. STOCKTAKING • Stocktaking is a process where all stock is physically counted, recorded and valued. This is normally done at the close of a trading period to determine trading performance and profitability. A stocktake can take place unscheduled as a “spot check” especially when there are problems in the organization.

  23. Frequency of Stocktakes Frequent: Daily, weekly, fortnightly Advantages: pinpoints stock levels, losses and inefficiencies more accurately. Problems can be fixed before they get out of hand. Deters theft and wastage. Disadvantages: Costly, time consuming, inconvenient/disruptive.

  24. Infrequent Stocktakes (monthly, quarterly, yearly) The advantages and disadvantages are opposite to those of frequent stocktakes (i.e. less time consuming etc. but problems compound and are harder to isolate) Frequency of stocktake depends on the size, type and turnover of the business and the advantages and disadvantages weighed carefully by management.

  25. CONDUCTING A STOCKTAKE • Prepare stock sheets in advance for all storerooms to be assessed • Notify staff of a stock take • Ensure all paper work is up to date • Stock sheets should be numbered • Name of stock takers, date and time should be on the sheets • One person to write, one person to call out the stock

  26. Procedures for a stock take • full bottles are counted as single unit (1) • opened bottles are counted as tenths( /10) • expensive stock should be estimated carefully • do not jump from place to place in count • stick to a pattern, left to right, top to bottom • if interrupted place marker between stock • check all areas carefully

  27. Procedures for stock take cont. • check stock behind other stock, don’t assume it’s the same stock • call item name before amount i.e. J.W. 2btl • careful with O.P. and U.P rums standard and deluxe brands • avoid distractions, social chats, spectators • beware of confusing unit descriptions and unit price i.e. cartons, cases, dozens, 2 dozen, singles, large, small etc.

  28. Reasons for variances between book value and physical stock take • Inaccurate recording and receiving issues • Theft • Errors in stock taking • Breakages/ discarded items not recorded • Improper documentation • Poor systems in place

  29. Key areas where security is required • Stores/Inventory – large amount of stock, stationary, linen, cutlery etc • Cash – needed for all operating areas • Premises – damage to property, unauthorised use • Staff/Guests – access to staff only for business, guest details kept confidential, security of rooms and belongings, access to rooms with permission ie. Maintenance • Equipment- authorised use only

  30. Storage Faults exercise

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