3. Why use a stock control system

From the previous page, you can see that many types of organisations need to have good stock control systems in place.

But how important is this? Consider the following

• Stock costs money, so you need to hold just enough for the business - no more, no less
• Stocks may perish, therefore the system has to keep track of 'use-by' and 'sell-by' dates
• Customers will walk away if they experience items being out of stock
• The factory may have to close if they have not enough parts
• You will lose profit because of lost sales. Standing costs such as wages remain the same, so you may soon be out of business.