Functions of stock administration

Functions of stock administration

Stock administration involves the following functions.

Receiving of goods

This involves handling incoming goods and includes:

1. Accepting deliveries from transporters or carriers
2. Checking the condition, quantity, and quality of the goods
3. Unloading the goods
4. Comparing goods received with the purchase order and delivery documents
5. Informing the purchasing department about the status of goods
6. Recording the details of goods received

Placing items

This means arranging the goods properly in the storage area:

1. Allocating goods to their appropriate places
2. Arranging goods in a proper order so that older stock can be used before newer ones (FIFO method)

Care of stock

This involves maintaining the goods in good condition:

1. Cleaning and dusting the storage area
2. Sorting out and removing damaged or spoiled goods
3. Ensuring proper storage conditions to avoid spoilage or damage

Issuing of stock

This is the process of giving out goods:

1. Delivering goods as requested, using stock issue vouchers
2. Keeping records of all goods issued to departments or customers
3. Ensuring accuracy of quantity and type of goods issued

Stock control

This involves monitoring the stock at all times:

1. Checking and recording the quantity and value of stock regularly
2. Identifying fast-moving and slow-moving items
3. Preventing overstocking and understocking of goods