Legal Definitions - stock control

Stock control refers to the systematic process a business uses to continuously monitor and manage the goods it holds for sale or use. This involves keeping up-to-date records of items as they are received, sold, or consumed, ensuring accurate information about current inventory levels at all times.

Here are a few examples to illustrate this concept:

• Imagine a popular online bookstore. When new shipments of books arrive, they are scanned into the system, adding to the available stock. As customers purchase books online, the system automatically deducts those items from the inventory. This continuous tracking allows the bookstore to know precisely how many copies of each title are available at any moment, helping them decide when to reorder and preventing them from selling books they no longer have in stock.

  This demonstrates stock control because the bookstore maintains perpetual, real-time records of its inventory, from receiving new items to fulfilling customer orders.

• Consider a car manufacturing plant. They use stock control to manage thousands of different components, from engine parts and tires to interior fabrics and electronic systems. As raw materials and finished components arrive from suppliers, they are logged into the system. When a car moves through the assembly line, the specific parts used for that vehicle are deducted from the inventory. This precise tracking ensures that the right parts are always available for production, minimizing delays and waste.

  This illustrates stock control by showing how a complex business tracks a vast array of incoming and outgoing components to maintain an efficient production process.

• Think about a busy hospital pharmacy. They manage a wide range of medications, some with strict expiration dates or specific storage requirements. When new batches of medicine arrive, they are logged, noting quantities and expiry dates. As doctors prescribe and nurses administer medications to patients, those items are recorded as dispensed. This system helps the pharmacy ensure they always have critical drugs on hand, avoid dispensing expired medication, and manage their supply chain effectively.

  This example highlights stock control in a critical environment where continuous, accurate inventory records are essential for patient safety and operational efficiency.