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Stock Control 101
Monday 21st May 2012
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Stack of CDs

Stock Control Fundamentals

Continued. A plain language guide

Originally drafted as a favour for a friend

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Stock Control - The Fundamentals

To begin with, set the ROQ high enough that there's only one order in the pipeline at a time; otherwise you have to keep track of what's still due in. The 'reorder at 10th last box' system wouldn't work. Try and make things easy to check. For example, mark every 10th box when you receive it. Reconcile book to physical stock (etc) on that product every time you open or issue a marked box. Always use part boxes first. That way, at check time the book stock should be a full box multiple. (The record companies used to destroy part boxes at the end of a production run - they were simply too difficult to manage) Very roughly, unravelling errors takes 8 to 25 times longer than getting it right first time. That assumes that you give up tracking down some errors, and simply adjust the stock. In a theft/loss free system, errors are paired. 'If it's not in the office (error #1) where it should be, then it might be in the car (error #2 - where it shouldn't be)'

Stockrooms don't make anything. If you write stock on (increase the book stock of 'A' because you found more than you should have) there's a serious problem looming somewhere.

In no particular order:-

  1. You missed a receipt note (and the supplier will chase you and/or freeze your credit)
  2. There's a paired error, either already found, or waiting
  3. 'B' got packed in A's boxes (an extreme example of a paired error)
  4. The write on reverses a previous writeoff. i.e. the previous count was wrong.
  5. You can't count

Have spare jewel cases, repackage scratched or cracked product. Concert sales are terribly difficult to forecast, so there will be times when you run out. As a minimum ask the desk 'at what point in the evening did we run out' or 'how many more do you think we might have sold if we'd had them'. The former is a science, the latter - they will usually overestimate but at least you have a feel. As a maximum, offer to mail it post free and make the transaction slick (business card?) and ultra reliable (You also get mailing addresses …) You just sold something you don't have. Politicians do that, few shops can! Have or get some simple ratios to help your forecasts. CD sales per ticket sold; correlation between newness of CD and rate of sale (some ticket holders already have older Sixteen pressings), between pieces on each CD and in that night's program, ditto composers, and so on. It's sometimes worth making transactions 'backtrack-able' in case they go wrong. For example, if stock is in many places at once (say three people need 100CD's each to sell on the night) then try this Issue 120 CD's (NOT 100) to Masie, 110 to Joe and 100 to Georgie. Afterwards your records are out by 100. If you'd given each 100 you'd have 3 suspects and no clues. Now you're pretty sure it's Georgie's transaction that screwed up. 'Not rocket science, more not lighting a match near the rocket'

We haven't failed. We've just sifted out another bunch of ways which don't work.
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