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The Significance Of Stock Control To Efficient Operational Activity Of Business Organization
[A CASE STUDY OF NIGERIAN BOTTLING COMPANY PLC ILORIN]
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Chapter one
1.1 Introduction
In recent time, stock control has been an important area in manufacturing organization. Both private and public sector make use of stock control for proper record of stock held in store.
The store as set up in any organization to assist in the production of goods and services. The primary objectives of stock is to provide services to the operating department in an organization. These function include maintenance of a balanced flow of material components tools in order to meet operational requirement to receive and issue work in progress, finished products accept stock scraps and other discarded materials.
Going by the above, there is need for strict stock control to ensure that the physical goods held in store house and stock yards for which proper records are kept.
It is important to note that stock in any organization has financial implication, because materials held in store represents money (i.e material is money). Almost large proportion that make up organization is capital went on materials. Therefore proper control is essential in an organization.
Moreover, the store manager must adopt modern stock control methods for effective operation of the store house.
1.2 Historical background of Nigerian bottling company.
The Nigeria bottling company came into existence on may 8th 1886, when the late A.G Leventis founded the company. It was the first in this country to be offered franchised by an international soft drink firm from a humble beginning as a family business, the company has grown to become a predominant bottles of non alchoholic beverages in Nigeria.
The first plant which was sited in lagos state went into operation in march 1953. Coke was the first soft drink to have its own designed shaped bottles, wjich was different from the common trade bottles. In 1972.
Some years after, the Ibadan plant was opened but later shutdown due to non availability of good water in Ibadan metropolis. Ilorin plant was mainly established to meet the needs of the people in Bida, Jebba, Ogbomosho, Okene, Oshogbo,Kontagura, Ijagbo, Offa, Lokoja and Ilorin metropolis.
The Ilorin plant has 8 managers.
The range of soft drink bottled by Nigerian bottling company plc (NBC), Ilorin plant produces the following soft drinks: Fanta orange, coke, sprite, Krest, bitter lemon, ginger Ale and Eva water. In terms of sales the company enjoys a wide acceptance of its products ranking Nigeria bottling company plc, as a whole. Its acceptance is higly appreciated.
The company presently has (13) bottling facilities and over 80 distribution warehouses located across the country. Since production started, Nigerian bottling company plc, has remained the largest bottler of non-alcoholic beverage in the bottles sold per year is 1.8 billion sales volume
1.3 Statement of the problems
There are some problems being encountered by the organization under study in the area of stock control activities. No matter how efficient an organization is, obviously, it will still be faced with one problem or the other while performing stock control function.
One of the problem is that some unit of stock are held in excess of immediate release as a result of poor stock control system.
Poor store arrangement owing to poor stock control and this can hinder free movement of personnel and material from one place to another.
Another problem is lack of adequate storage facility and material handling equipments.
Also modern stock control methods has not been adopted into the store operation of the organization.
1.4 Aims and objectives of the study
This research work was written in partial fulfillment of the requirement for the award of higher national diploma (HND) certificate in purchasing and supply awarded by department of purchasing and supply, institute of finance and management study, Kwara state polytechnic Ilorin.
In addtition, the research work was conducted to enable the researcher to have a comprehensive knowledge on stock control as it affects the store operation of manufacturing organization.
CHAPTER ONE -- [Total Page(s) 2]
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