Business Administration Level 2
Maintain and issue stationery supplies
Stationery supplies
Organisations hold a supply of items required to carry out their day to day operation.
The majority of stationery items are ‘consumables’.
This means that they are constantly used up and need to be replaced.
Why is it important to maintain stock levels?
To have a reserve supply of essential stationery and supplies.
Delays in the supply of such stock could cause hold-ups in work.
Possible loss of profits may occur if work cannot be completed on time.
It is cheaper to buy goods in ‘bulk’ to take advantage of discounts and lower prices.
Purposes of controlling stationery supplies
Prevents theft
Prevents misuse
Prevents damage or spoilage
Ensures best use of resources available
Ensures there are sufficient resources for work activity
Records use and helps to calculate quantities to be ordered
Identifies improvements to systems and use of resources
Identifies more cost-effective ways of working and therefore saves the organisation money.
Monitoring stock use
Enables you to identify how frequently or urgently supplies are needed.
Helps to identify trends and areas for improvement.
Issuing stock
The organisation may have procedures for issuing stationery.
It may be on demand, provided the correct forms have been completed.
There may be set times.
Maintaining stocks
When stocks of any item drop, the stock clerk reorders from the supplier.
New deliveries are checked and correctly stored away.
Stock records are adjusted to show new balances of stock held.
Regular stock checks/inventory verify actual amounts of stock.
Surplus, damaged or out-of-date stock is disposed of according to organisation’s procedures.
Stock control systems
Types of stock control systems
Fixed order system
Periodic review
Just-in-time system
Fixed order system
The following levels are set for each item:
Minimum quantity to be held in stock
Maximum quantity to be held in stock
Reordering level.
Periodic review
A fully stocked level is determined for each item.
Stocks of items are reviewed and reordered periodically, eg every 4 weeks.
Just-in-time system (JIT)
This system holds only enough stock for the next operation/project.
JIT aims to reduce capital tied up in stock and reduce the storage capacity required.
Requires high quality, reliable suppliers who can respond at short notice, rather than the most economical.
How a stock control system works
A stock/stationery requisition is completed and passed to stock control clerk.
Requisitions must be authorised.
Stock is issued by a stock clerk who then adjusts the records kept for those particular items.
Types of stock record system
Systems for recording stock movements may be:
Manual – ie paper-based card for each item
Electronic – usually as a database form for each item.
Advantages of a manual stock control system
Cards are easy to complete and store.
Cards can be updated in the stock room or office.
The information on all items is available at a glance.
The system is easy to follow.
No need for computer equipment.
Disadvantages of a manual stock control system
Cards are difficult to analyse – it would take time to work out the most ‘active’ and ‘inactive’ items.
Excessive ordering by one department may be difficult to identify.
Searching for/updating records is more time consuming.
Keeping records up to date
Ordering stationery
Procedures for ordering goods and services
Organisations have set procedures.
Quotations or written specification may be necessary.
The purchase will have to be authorised.
Stationery suppliers
The stationery stock used in an organisation will be purchased from suppliers (retail shops, wholesalers or manufacturers).
There may be a list of approved suppliers.
Factors to take into account when ordering stationery
Price
Quality
Availability
Delivery date(s)
Discounts available
Choice
Changes in the organisation’s business.
Calculating quantities to be ordered
Adhering to the maximum levels set for individual items.
Setting a realistic minimum level.
Records of organisation’s usage of different items.
Information from stock checks and inventories as to unused items/surpluses.
Taking delivery of stationery orders
Check goods against delivery note.
The delivery note is compared with the invoice to ensure the correct amount is charged.
Report any mistakes to a supervisor as soon as possible.
The supplier uses the delivery note as a receipt for goods delivered.
Deliveries made to a central point are checked by specialist staff who complete a goods received note.
Temporarily out of stock items may be marked as ‘to follow’ on the delivery note.
If you are responsible for checking off goods
Insert clear ticks opposite each item correctly received in good condition.
Write clear notes if there are any discrepancies.
Initial your work – so that if there are any queries people know who to come to for information.
Take care to check goods carefully if you are asked to sign for a delivery.
If you are unable to check at the time write ‘received unseen’ when you sign.
Problems that may occur with deliveries
Incorrect number of items sent.
Wrong items sent.
Missing items not listed as ‘to follow’.
Duplicate orders.
Damaged goods.
Delivery late.
Goods out of stock/no longer available.
Dealing with delivery problems
Chase up late orders with suppliers.
Report and return damaged items.
Check deliveries against orders to record and report inaccurate amounts or items.
Chase up replacement or missing items with supplier.
Report any inaccuracies to Finance/Accounts Department so that invoices can be checked before payment.
Chase up late or incorrect orders with suppliers
Notify the supplier immediately of incorrect or missing items.
Obtain their instructions on how to return items.
Ask when replacement/missing items will be received.
Make a note of the actions you have taken and any promises made.
Stationery storage
Guidelines for storage of stock
Dry and well-ventilated
Lockable cupboard
New behind old (FIFO)
Identifiable
Store paper wrapped as it discolours.
Security of stationery stock
Stock is money – loss of stock is loss of money.
Preventing pilferage and misuse:
Secure storage
Stock control system
One person in control of issuing stock
Checking authorisation
Monitoring amounts issued.
Making the store room efficient
Label all the shelves and have a plan that can be followed by others.
Keep fast moving items where they are most easily accessible.
Keep large and bulky items low down (or on the floor under the bottom shelf) for safe access.
Keep pens and pencils in boxes to stop them rolling about.
Break down items supplied in large quantities, eg paper clips, into smaller quantities to avoid wastage.
Health and safety when storing stock
Keep flammable liquids away from heat.
Keep storage of dangerous/flammable substances to a minimum and label any potentially hazardous substances as such.
Do not store full boxes where people could fall over them and remove empty boxes.
Provide a safety stool for reaching high shelves.
Keep drawing pins in boxes and paper wrapped.
Follow the Manual Handling Operations Regulations for lifting/transporting heavy items.
COSHH
The Control of Substances Hazardous to Health (COSHH) regulations.
COSHH regulations cover use and storage of potentially hazardous substances.
Potentially hazardous substances found in offices
Photocopier toner
Cleaning fluids
Spirit-based thinners and cleaners
Aerosols and compressed gases.
Stock checks and disposal of waste
Purpose of stock checks
To ensure that the stock records and actual physical amount of stock are the same.
To investigate any discrepancies.
Methods
Information electronically analysed – issued stock against delivered stock to give amount remaining in store.
Bar code scanning.
Manual count of stock against records.
Carrying out a physical stock check
Each item is counted and the total is checked off against the stock record for that item.
If the count is correct then the stock sheet is ticked for that item.
If the count is incorrect then the stock is recounted as a double check.
All discrepancies are reported to the supervisor or manager.
A note is also made of items that cannot be used for any reason.
Problems with stock items
Damaged
Obsolete
Surplus to requirements.
Disposing of waste paper
Use separate bins for confidential/non-confidential waste paper.
Confidential documents should be shredded or disposed of by a specialist external organisation if excessive.
Small amounts of non-confidential waste paper should be recycled in-house where possible.
Large amounts of waste paper may be taken to a recycling centre or collected by a recycling organisation.