6 theft (by staff and customers) unrecorded discounts and markdowns Stock losses are caused by:theft (by staff and customers)unrecorded discounts and markdownsdamage to products resulting in markdownscareless price quotes resulting in lower gross profit than budgeted formerchandise on loan unrecorded
7 merchandise out for repair unrecorded invoices from previous stock take not processederrors in invoices not identifiedsales dockets not processederrors on stock sheets - additions, extensions, quantities,etc.stock missed when taking physical countcredits passed, but goods not received
8 book keeping errors and omissions. incorrect cut off points on receiving and dispatchingincorrect treatment of undelivered sales
9 Stockrooms and related areas Missing stock can happen with poor documentation controls, inadequate checking of deliveries and messy storage areas.
10 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
11 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
13 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 type2) Goods are unpacked and visually checked for type, quantities and possible damage3) Stock reports are updated– input incoming stock into the appropriate system used by the store4) Goods are placed into storage or prepared for display
14 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.
15 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.
16 Damaged , torn or have holes 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 holesMay have been opened or have creased flapsMay have been resealedAre incorrect stockMay have been crushed or dentedHave wet glue or multiple glue points under flapsJust do not look right
17 Describe why it would be important to: 1 Describe why it would be important to: 1. Check for damaged or broken cartons2. Check to see that the description of the cartons on theinvoice or delivery docket matches the contents described on the cartons
18 Discuss1. 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?
19 NEXT WEEKOrderingPurchase ordersSally’s hotdogs scenario