Inventory Procurement and Control Systems

Most firms in Nigeria have submerged for reasons of poor stock management ranging from sourcing, procuring, vetting of procured orders, acceptance of orders and scrap disposal.Poor stock management is the cause of the submersion of the manufacturing companies. For any Industry to be profitable, there should be a proper inventory procurement and a good control system.Effective productivity depends on effective inventory in terms of quantity and quality. Inventory stocked may attain different levels: maximum reorder and minimum levels. A company that aims at remaining effectively productive would always place orders the moment the reorder level is reached. The effect of this is that breakdowns in productions and stockouts of inventory would be a reality. Monthly stock taking always assists the company to readjust the arrival of inventory in a production. For a manufacturing Industry to be effective, an integrative system of checking movement of inventory among department should be established and enhanced. Proper attention should be given to inventories needed by the company to prevent overstocking and understocking.

Autorentext

The Author,Okoroafor Stella hold B.Sc in Accounts, PGDE, MBA, M.Sc,all from Nigeria University and Post graduate Certificate in HRM from Humber CollegeToronto, Canada. Since graduation she has worked in an Audit firm and has lectured at AIFC Owerri, Nigeria. Currently she is working with NACE Immigration Consulting in Ontario, Canada.