Perform Stock Control and Minimise Theft
Tanya Scrivener Week 1
There are six key areas that
you should be aware of to
effectively control
inventory.
Each area should have a
defined procedure.
Causes of
Stock
Losses
Stock losses are caused by:
•theft (by staff and customers)
•unrecorded discounts and markdowns
•damage to products resulting in markdowns
•careless price quotes resulting in lower gross
profit than budgeted for
•merchandise on loan unrecorded
•merchandise out for repair unrecorded
•invoices from previous stock take not
processed
•errors in invoices not identified
• sales dockets not processed
• errors on stock sheets - additions,
extensions, quantities,etc.
•stock missed when taking physical count
•credits passed, but goods not received
•book keeping errors and omissions.
•incorrect cut off points on receiving and dispatching
•incorrect treatment of undelivered sales
Stockrooms and related areas
Missing stock can happen with poor
documentation controls, inadequate
checking of deliveries and messy storage
areas.
Theft of stock from the stockroom and related areas
can be minimised by following a few precautions:
Lock all storage and receiving area doors unless
accepting deliveries or putting stock away.
Check and store incoming goods as soon as possible.
Avoid leaving stock near doors, customer pick- up areas
or other areas relatively accessible to the public
Never leave any person unattended in the area
Contain unauthorised persons such as delivery drivers
to the dock/ receiving area only
Never allow customers in the stockroom
Receiving the stock
 When a delivery of merchandise from the
warehouse or suppliers reaches the store, there are
four basic steps involved in taking delivery of the
shipment.
1) Shipping documents are compared with order
documents to ensure correct quantities and type
2) Goods are unpacked and visually checked for type,
quantities and possible damage
3) Stock reports are updated– input incoming stock
into the appropriate system used by the store
4) Goods are placed into storage or prepared for
display
Checking Outer Cartons
Ensuring that the goods delivered to your store:
• have not been tampered with
• are not stolen
• have not been damaged by the delivery process
• are the correct goods for your store in both size and
quality
will enable you to refuse the delivery if necessary.
You should note on the delivery docket why
you are not taking delivery of the items
before the driver has left your receiving bay.
You do not want to be left with stock that you
cannot sell because it has been damaged or
does not suit the customers who enter your
store.
Making sure that only one delivery occurs at a time will mean
that your store receives the right merchandise. Keep a sharp eye
out for cartons that:
 Damaged , torn or have
holes
 May have been opened
or have creased flaps
 May have been crushed
or dented
 Have wet glue or
multiple glue points
under flaps
 May have been
resealed
 Are incorrect stock
 Just do not look right
2. Check to see that the description of the cartons on the
invoice or delivery docket matches the contents described on
the cartons
Discuss
 1. What would you do if you have
received two deliveries at the same time?
Both delivery dockets have been handed
to you.
 2. What would you do if the label on a
carton is for your store, but does not have
the correct address for your store? It is
the address for a branch in another
suburb.
 3. What would you do if the carton has a
flapping lid and the stock is exposed?
NEXT WEEK
Ordering
Purchase orders
Sally’s hotdogs scenario