13. Stock Control System

We have reviewed the characteristics of a personnel system and how money is managed with the help of a financial control system. The third important component is a good stock control system.

A stock control system is needed if the company has to deal with physical goods. For instance a supermarket or a factory needs such a system.

The stock system is used to make sure that enough items are in place to allow production to continue smoothly and/or that customers are able to buy the goods for sale.

Note that stock control is part of a larger logistics operation that includes delivery. For example, the stock system may automatically re-order 3 items and yet only two is delivered, resulting in potential customer annoyance or lost production.