Purpose of the Policy
This policy provides guidelines for monitoring and managing the amount of stock within the business to ensure that there are suitable levels of stock available to customers at all times. This policy covers stock in store, stock in storage, stock in distribution centre etc.
It is stock manager responsibility to ensure that the stock control policy is adhered to by all employees.
Procedures
Purchase of Stock
It is stock manager responsibility to:
- identify core stock and ensure that appropriate levels are held at all times
- monitor all stock levels and ‘stock turn’ (how many times stock turns over in a year)
- for fast-moving stock negotiate with suppliers for ‘just in time’ deliveries where possible
- regularly review sales budgets and order necessary stock in line with budgets
- negotiate with suppliers for best price, quality, delivery methods and returns policy
- order all stock required
- maintain “preferred suppliers” list
- keep up to date with customer and market trends and seek out new products for recommendation to the CEO.
Purchase of all stock must be authorised by stock manager and CEO.
All stock purchases must be requested by using a purchase order form and adhere to the purchasing policy.
Receiving Stock
When stock is received from the supplier, it is stock manager responsibility to:
- review delivered items to delivery docket, including quantity, quality and completeness of order
- match delivery docket to purchase order
- follow up and ensure correct stock order will be received where there is {insert possible issues on delivery such as under/over-supply, damaged goods etc.}
- store the stock securely and in appropriate area
- update all stock records for receipt of goods
- inform {insert relevant job title here, such as sales manager} of any under/over supply or damaged goods.
Managing Stock
It is stock manager responsibility to:
- identify core stock and ensure that appropriate levels are held at all times
- monitor all stock levels and stock turns
- regularly review sales budgets and ensure that stock is ordered in line with budgets
- understand each stock item – which items are the fast and slow moving stock
- monitor re-order levels and ensure orders are placed in adequate time to reduce non-availability of core or necessary stock items
- meet weekly with CEO and CFO to co-ordinate stock purchases, review stock performance, sales performance and any other matters that should be addressed regularly regarding stock monitoring
- ensure that all staff are aware of new product, price changes and procedures for accurate recording of all stock movements
- ensure that there are adequate controls (physical and administrative) in place to minimise theft and/or waste of all stock items
- organise and oversee physical stock take {insert timing here, recommended twice a year} and match records of stock take to administrative and financial records.
It is all sales employees’ responsibility to:
- identify core stock and ensure that appropriate levels are held
- raise purchase orders for low levels of stock
- understand the importance of good stock control
- keep up to date with stock pricing and new products
- ensure that all stock records are kept accurately
- ensure that all stock is securely stored to minimise theft and wastage.