Full Project – THE IMPACT OF STOCK MANAGEMENT ON THE SUCCESS OF AN ORGANIZATION

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CHAPTER ONE

1.0     INTRODUCTION

Many organizations in Nigeria that do not have proper stock management systems in their operations face  a lot of challenges most of which include dependency on the supplier, missed sales in case of stock outs, high costs of obtaining materials and poor customer service. Good Stock management by a firm will lower costs, improve efficiency and ensure production while at the same time meet fluctuations in customer demand. It will give the firm competitive advantages as more efficient production can feed through to lower prices and customers are always satisfied as products will be available on demand. Stock management directly affect s both the value of the assets in a business and the quality of services given to customers. Firm should therefore focus on just a few core activities which of course include stock management in order to maintain a long term competitive advantage using this approach which has been refined, companies have tried to focus on their stock and have set a stage for wide spread acceptance of advantage of stock management.

The scenario of stock management involves determining the purchase and techniques and strategy. Firms that have not embraced the use of stock management in their operations have been reported to miss the chance of maximizing sales. So poor performing industries look up to stock management to drive down costs improve performance and revolutionalised traditional systems of production. It is against their background that firms have realize the importance of stock management in organization success. The success of an organization can also on how the organization achieves its mission and satisfy its customer needs in the most competitive way. The organization is said to be successful when it can satisfy all its target customers in time, handle customer order in the right time and use the available resources effectively and efficiently.

1.1     STATEMENT OF THE PROBLEM

Stock management is very important aspect in an organization and its allows efficient balance of pattern, use of space, access to stock input and output general efficient stores operation and customer satisfaction. Its however clear that Dunlop Nigeria Plc lacked effort at sourcing local raw materials inputs for it’s production informed a strategy of backward integration of the majority shareholding.

1.2     RESEARCH OBJECTIVES

i.  To establish the inventory management system and techniques

ii. To find out the costs associated with holding inventory in an organization

iii. To establish the measure of success in an organization

iv. To establish the relationship between stock management and organization success.

1.3     RESEARCH HYPOTHESES/QUESTIONS

i.  What are the inventory management systems and techniques in use?

ii. What are the costs associated with holding inventory in an organization?

iii. What are the measures of success in an organization?

iv. What is the relationship between stock management organization success?

1.4     SCOPE OF THE STUDY  

1.4.1  CONTENT SCOPE

The study encompassed stock management as an independent variable while organization success is the dependent variable. The study specifically focused on stock taking, and also investigated stock levels in organization.

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Full Project – THE IMPACT OF STOCK MANAGEMENT ON THE SUCCESS OF AN ORGANIZATION