Stock related security 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

theft (by staff and customers) unrecorded discounts and markdowns 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.

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 holes May have been opened or have creased flaps May have been resealed Are incorrect stock May have been crushed or dented Have wet glue or multiple glue points under flaps Just do not look right

Describe why it would be important to: 1 Describe why it would be important to: 1. Check for damaged or broken cartons 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