Stock Control & Cost Control

Course details

Good customer service involves ensuring you have enough stock to meet demand at all times. Good business management involves ensuring stock holding costs are kept to a minimum. Sometimes it can be hard to find the correct balance between both. Keeping accurate stock figures and ordering correct quantities of stock at the right price is easy if you know how. This course is designed to help participants manage their stock and cost more effectively and make it work better for their business.

OBJECTIVES

Develop an Understanding of the Importance of Each Element of Stock Control & Cost Control Management.

Develop and Maintain Good Stock Control & Cost Control Practices.

SUMMARY CONTENT

STOCK CONTROL

Financial Considerations

• The Effect of Stock Control on Working Capital and Cash Flow
• The Effect on Company Profitability

How Much To Order:

• Cost of Holding Stock
• Cost of not holding enough stock
• Cost of Ordering
• Economic Order Quantities
• Effect of Discounts

Systems of Stock Control:

• Basic Stock Cards
• Computer Systems

Forecasting Future Demands:

• Demand Patterns
• Seasonal Effects
• Moving Averages
• Trends

Stocktaking :

• Reasons for Stocktaking
• Periodic vs. Continuous
• Treatment of Discrepancies

When to Order:

• Safety Stocks
• Re-Order Level
• Service Factor

Other Stock Issues

Obsolete, Redundant and Surplus Stocks:

• Identification/Disposal
• Seeking Credit

Stock Control Exercise

COST CONTROL

Understanding Costs:

• What Are Costs?
• Measuring Overheads
• Review Periods
• What You Measure, You Manage

Benchmarking:

• How Do Your Costs Compare with Others in Your Sector?
• How Do Your Costs Compare with Other Sectors?

Taking Action:

• Knowing what to Buy
• Knowing when to Buy
• Tendering
• Quotes
• Buying Terms
• Payment Terms
• Negotiating
• Taking Tough Decisions