Customer Care - Stock Control

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Stock Control

  • Physical Resource: a tangible item required of the business
  • Asset: something the business owns, made up by some physical resources
  • Capital: the form of wealth, either money/assets
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Physical Resources

  • Records
  • Land/property
    • all businesses must have a postal address
  • Machinery
    • e.g., tills, power tools
    • anything that needs power
  • Tools and equipment
    • things needed to complete daily activities
  • Stock
  • Tenure: the financial arrangement for paying for a property, can either by owner occupancy or tenancy
    • in tenancy the landlord owns the land
  • Materials: the items you will be selling
    • includes raw materials and stock
    • includes materials used for service
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Monitoring Stock

  • perishable: can go out of date/past its best
    • illegal to sell out of date products
    • e.g., antivenom, feeds
  • non-perishable: cannot go out of date/past its best
    • e.g., soft toys
  • Sell-by: how long the shop has to sell the item
  • Use-by: the time it takes for the item to go off and potentially make the consumer ill
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Stock Rotation

  • Reduces wastage
    • make a financial loss from the item, still have to pay the supplier
    • throw in the bin as past sell-by or broken if non-perishable
    • can use a first-in first-out basis, shortest date at the front
  • Cost-price: the amount of money an item costs the business to make
    • if we throw that away or if it breaks then we make a loss by the same as the cost price
  • Can use special promotions to reduce the price and encourage the public to buy a product near its sell-by/use-by date
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Stock Inventories

  • Need to be able to predict what the demand for a product is
    • make sure they have enough stock
  • too little = lose sales
  • too much stock = money tied up in capital
  • stock items have 2 prices
    • selling price: what the business sells a product for
    • cost price: what the business buys the product for
  • write offs are how we record wastage
  • holding stock: stock that has been bought from the supplier but has not been sold
  • buffer stock: the minimum stock level we can have to keep the business running and prevent selling out
    • amount sold in a week + 1 (to make sure we don't run out)
    • till system can automatically order more if stock falls below the buffer
    • can be changed, so needs constant monitoring
    • only paying for stock you need
  • lead time: time it takes for stock to be delivered after ordering
    • buffer stock needs to last for the lead time
  • some businesses do an annual stock take
  • departmental stock take is where different sections are done each week
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What are the key areas of stock control?

  • how much of each item is sold in how much time
  • stock inventory
    • non-perishable and perishable stock
      • perishable stock rotation
  • buffer stock
    • identify how many the business normally sells
    • controls cost
  • stock review
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