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

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

Stock Control

Most problems occur because insufficient time is given to staff to complete the task.

Store keeping

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

Stock Control - receipting

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.

Receipt of Goods

Perishable goods should be tagged with date received.

Meat should be weighed and temperature checked.

Delivery personnel not allowed in stores.

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

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

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)

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)

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)

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.

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.

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

Stock Records

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)

Documentation

Purchase Requisition Purchase Order Delivery Docket/Suppliers Advice

Packing note/Consignment note Invoice Statement Cheque Requisition

Issuing documentation

Stores requisition Requirement

voucher Stores indent Issue voucher Stores order

Demand note Kit marshall note Picking note Stores schedule

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

Par Stock Method (CONTINUED)

SKU stock keeping unit UPC universal price code

Elements of stock control

Stocktaking Ordering Receiving Internal orders Returns Sales

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.

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.

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.

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

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

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.

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

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

Storage Faults exerciseFAULT CAUSE REMEDYDamaged bottle labelLeaking bottlesOff keg beer within use by dateWhite wine gone fizzy, over carbonated

Dry sherry gone vinegary

Oxidized wineOut of date liquor