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Store Management System

JUSTIFICATION FOR HOLDING STOCKS

Article 63 of the EFG Procurement and Property Administration Proclamation (PPAP) states that all acquisition of public property is for facilitating the delivery and maintenance approved programs as efficiently and effectively as possible.2 Article 65 sub article 4 of the PPAP also states that supplies not acquired for immediate consumption shall form part of supply inventories and the custodial responsibility be assigned for such inventories.

In facilitating the smooth running of approved programs, public bodies are sometimes forced to hold stocks for the following reasons.

  • Anticipated price increases may necessitate early buying for storage
  • Bulk purchases may lead to economic procurement
  • Need to avoid interruption of public bodies operation due to running out of stock
  • Imported stock require large lead time for transportation/shipment
  • Unable to find dependable supplier, delivering materials of the right quality on the right time
  • To keep strategic stocks that are not acquired easily from the domestic market

Stock management functions

There are range of activities in managing stocks ranging from identifying the need for a property to materials and supplies to receiving, to using and disposing. For clarity and brevity, it is important to identify the typical functions that fall under stock management and its relationship with other functions in the broader supply system.

The Stock management involves the following functions and activities:

  1. Identifying stock:- this function involves classification and coding of stock.
  2. Receiving:- actives performed in this function include receiving of fixed assets, and stocks from all sources and conducting inspection.
  3. Issue:- handing over stocks and fixed assets to users departments and outsiders are the activities under this function.
  4. Stock record and accounting:- the major activities under this function are keeping and updating and reporting the record for the movement of stock.
  5. Stock taking and stock control:- this function involves the periodic physical count of stock and fixed assets in storehouses, and ensuring materials and supplies are available when needed.
  6. Storage:- the proper keeping and preservation of stock and fixed assets while it is in store houses and stock yards.

In performing these functions, there exists relationship with Procurement and users departments/units.

WHY CLASSIFICATION AND CODING?

Classification and coding are necessary for the following reasons..

  1. To avoid repeated use of long descriptions in all stores documents which entail more clerical labor and confusion
  2. Accurate identification of all stock items
  3. Prevention of duplication, since similar items will be group together and once an item is coded should not be given any alternative code number
  4. Codes assist in standardization, which is the most important use of stock code.
  5. It serves as storehouse location and allocates the storage space
  6. It provides as a base for sorting stock documents like receipts and issues
  7. Coding simplifies computerization and data processing
  8. The classification/code system can be used as a means of physical control for location and storage of stocks.

In performing these functions, there exists relationship with Procurement and users departments/units.
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