Task 1

Review the organisational documents

 Current commercial stock control procedures

To review stock levels and stock sales volume:

1. Work out your current stock levels and their value You can use accounting or stock control
to track individual stock items.
2. Look at sales records to find out which items are good sellers and which are slow-moving –
remember to look at seasonal trends.
3. Work out which items of stock sold make the most gross margin— the percentage of total
sales revenue you make after taking away the direct costs of producing your goods. Focus
more energy on these sales for improved profit.
4. Make a list of slow-moving, old and excess stock items and develop an action plan to move
this stock immediately. Even if it's discounted below the cost of the item, you can use the
money made to buy new stock that sells.
5. If you donate slow-moving stock to a charity, let your customers know.
6. Update your stock records and ensure your financial policies and procedures manual
includes a policy to track all movement of stock. This will help with reordering stock only
when you need to and highlight any theft or fraud that may occur.

Stock control policy

When putting a stock control policy in place:

1. Identify stock you always need and make sure you have sufficient supply.
2. Tighten the process of buying stock – knowing the volume of sales per stock item will help
you buy the right amount.
3. Keep accurate stock records and match them to a regular physical count, at least once a
year. If there's a big difference between the records and the physical count, do the count
more often until you've worked out what's causing the difference
4. Negotiate deals with suppliers — avoid volume discounts unless you're selling large volumes
of the item. You can also try to negotiate discounts for quick settlement if you can afford to
or negotiate for smaller and more frequent deliveries from your suppliers to smooth out
your cash flow.
5. Don't let discount prices drive your stock-buying decisions – buy a stock you can sell at a
profit in a reasonable time frame.

 Documentation for the ordering, monitoring and maintenance of stock

Reserves quantities of stock items from an on-hand supply for later delivery. This
Stock Requisition
reduces the available quantity. If items are not immediately available, they may be
(SR)
backordered and later filled by having the Backorder Servicing program run.
 Schedules previously reserved items to be picked up for delivery and releases them
from a reserved status. This function is performed by creating a Pick Ticket Report
Pick and Issue (PI) (IN80). From this report, the warehouse can determine the stock item, the
quantity, and the bin number of the items that are to be picked up. It also creates
the corresponding Issue Confirmation (CI) document.

Confirms to the system that previously reserved and released items have been
Stock Issue
issued from the warehouse to the buyer. The on-hand quantity of the warehouse
Confirmation (CI)
for this item is reduced by the amount issued.

Issues requested items directly from the on-hand quantity. As the items are issued
immediately upon request, in effect, "over the counter," backordering is not
allowed. Once an "Over the Counter" transaction is successfully completed, an
Over the Counter
Over the Counter Issued Report will be produced, identifying the requestor and the
(OC)
stock items issued. Any request for items unavailable for immediate issuance must
be reserved through a Stock Requisition (SR). On-hand quantity is reduced by the
amount issued.

Allows the original buyer to return previously issued items. At the option of the
Stock Return (SN)
issuing warehouse, a return charge may be imposed.

Allows warehouse management to adjust quantities or unit values of on-hand

Inventory
items due to a change in on-hand quantities or unit costs. These adjustments alter
Adjustment (IA)
inventory and cost of goods expense balances.

Allows warehouse management to adjust quantities of on-hand items due to a

Physical Inventory
change in on-hand quantities at a specified unit cost. These adjustments alter
Purchase Input (IP)
inventory and cost of goods expense balances.

Stock Transfer
Initiates the transfer of items from one warehouse to another.
Issue (TI)

Stock Transfer Recognizes the receipt of transfer items by the receiving warehouse. On-hand
Receipt (TR) quantities of receiving/issuing warehouses are adjusted.

 Supplier purchasing agreements

A supplier agreement sets out the terms and conditions under which the supplier will deliver the
goods or services. It includes elements such as product or service specifics, pricing, delivery
schedules, quality standards, payment conditions, and dispute resolution procedures in the event of
a breach of contract.
Well, your supplier agreement template should answer the following questions:

- Who is involved in the contract/transaction? The start of your contract should identify both
the supplier and the buyer using their legal names.
- Which goods or services are being provided? The supplier agreement template should give a
thorough description of the specific goods or services that the supplier will provide, along
with details about the quantity, quality, and specifications.
- How much will the supplier be paid, and when? Your supplier agreement template should
set out the exact cost for the goods and services being contracted for. There should also be
detailed information about payment including the due dates and payment methods.
- How will the goods or services be delivered? Your supplier agreement template should
outline the supplier's obligations regarding delivery, including the delivery schedule, delivery
method, location, and who bears the risk during transit.
- How long will the contract last? The agreement must mention the contract's effective date
and end date. For recurring or ongoing contracts, the terms and conditions for contract
renewal and notice periods for termination should be explicitly stated.
- Which standards are expected from the supplier? The supplier agreement should articulate
the performance standards, key performance indicators (KPIs), or service levels the supplier
is obligated to meet.
- How can parties end the contract? You should have a section defining the conditions under
which either party can terminate the agreement. This could be due to a breach of contract,
failure to deliver, insolvency, or 'for convenience' (i.e., without a specific reason), usually
with a notice period.
- How will potential disputes be handled? The agreement should delineate the procedure for
resolving any disputes that may arise, whether through negotiation, mediation, arbitration,
or litigation. The choice of law and the venue for legal proceedings should also be defined.
- How will parties protect confidential information? If the supplier will handle confidential
information, it's essential to include a confidentiality or non-disclosure clause. This should
outline what constitutes confidential information, the obligations to protect it, and the
consequences of unauthorized disclosure.
- What will happen in the event of losses or damages? Your supplier agreement template
should cover the protection available in the event of losses or damages caused by a party’s
actions. The supplier might agree to compensate the buyer for any damage caused by
defective goods, for example.

 Purchase orders and invoices

A purchase order is sent by the buyer to the vendor to track and manage the purchasing process,
whereas an invoice is sent by the vendor to the buyer as an official request for the goods or services
that the vendor has provided.

The following points should be included in a supplier agreement:

 Type of materials and products sourced

 Quantity, and quality of the goods/service
 Price and payment terms
 Confidentiality clauses
 Delivery time frame
 Procurement terms and conditions

1. Facilitate the stock orders with each supplier.

Staff Name: Emutcha Poomsawat Closing Date: 31/12/23

ITEM TEMPERATURE / CONDITION CORRECTIVE ACTION

Glass Cleaner Concentrated 20° - Good condition – Expiry N/A
Mix Date 20/09/20
General Purpose Cleaner – 20° - Good condition – Expiry N/A
Concentrated Cleaner Date 20/09/20
Toilet Brushes Store Dry place – Good N/A
condition
Cleaning Sponges Store Dry place – Good N/A
condition
Paper Towels Good condition N/A
Air Freshener Spray 20° - Good condition – Expiry N/A
Date 20/09/20
Water Cups Good condition N/A
JIF – Cream Cleanser 14° - Good condition – Expiry N/A
Date 20/09/20
Broom Good condition N/A
Dustpan Good condition N/A
Signature: Emutcha Poomsawat