#
 

Stock Control Systems
Why do we use stock control systems?
We use stock control systems as they are an electronical method of managing stock. For stores which do not have a store room they are very helpful as they can order stock from warehouses without the staff having to pick up the phone every time they sell an item and the in-store stock is getting low.
A stock control system is an electronic method of keeping control of stock intake and sales as well as orders and stock received to the store.
Managing stock
We use stock control systems to manage stock as it is a simpler method which does not require as much work from the staff. It is especially important for large companies which have to manage a lot of stock. The system can understand how much stock of a certain item is in the store as well as calculating how popular the item is. Because of this and also judging by what has sold the system can order more of the item from the warehouse so that there is a constant flow of stock coming in as well as going out through sales.
Purchases
The stock control system can manage all the purchases which take place at the till. When a customer wishes to buy a product its barcode is scanned and the system reads the item. The item is then ready to be paid for as well as any others the customer wishes to buy. The amount is calculated and the customer enters their card and then their pin number. The card details are then electronically sent to the bank and checked, once the card is confirmed as valid the transaction goes through and the item is removed from the stock list in the system. If this was the last of this item the system will automatically order more this will also happen if the item is under popular demand.
Sales
Once an item is sold the system has to remove the item from the stock list. Once this happens the system can see how many of this item is left in stock and how popular the item is. Judging by this the system understands how many more of the item need to be ordered from the warehouse.
Re-ordering
Examples
LEO - historical developments & importance
LEO was the world’s first commercial computer as well as being the world’s first stock control system. LEO was created to manage stock for Lyons & Co corner shops originally. The corner shops sold cakes which meant that not only did they need to make sure they had enough stock to sell, they couldn’t have too much stock because it would go stale if it was left over. Therefore the managers of each shop would order how many cakes they wanted judging by how popular they were and how many they thought they would need. LEO could understand this and have a stock sheet created for the factory much quicker than a phone call from each store.
Decathlon Sports Shops
Decathlon sports shops are just one example of the amount of stores which use computers to manage stock control. Decathlon is an enormous store with around 30,000 items to choose from so they have no room for a storage room. This means they need a separate warehouse which happens to be in France due to the land being cheap and transport not too expensive. Due to the warehouse being so far away there would be a lot of phone calls being made if the store had to call the warehouse every time they made a sale so they have the computer do it all for them.


Decathalon worksheet