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CHAPTER 1: Introduction
1.1 Background of the study
Inventory is a primary part of many of today’s businesses. Essentially, stock is the storage of products that are sold to consumers to help the business make a profit. Further, in some instances, stock also includes what the company uses to keep the business up and running for examples, storage for cleaners would be considered inventory for a business that focuses on the business of cleaning.
The society in which we are today is becoming a complex structure, it is so dynamic that it change everyday, this is a s a result of ever-increasing innovation in our management information system, for manager of today to achieve accurate and effective performance in any organization they must adjust themselves to these changes especially in information technology. Today major activities in stock control such as determining what is required, where is required, how much is required, stock maintenance and reproduction of output is better done using information technology as it is easier, much faster and reliable managers can now have at their disposal basic data processing and information technology devices that will enhance their productivity, profitability and value for money.
There are several different forms of inventory and any business may rely on one or more forms. One form of inventory that a business may have is products that are ready for sale. For instance, some businesses buy their products from manufacturers and store them in warehouses. Such facilities will require warehouse management of inventory. Such products are ready for sale immediately and require no assembly like, household items, furniture, and office suppliers are just a few of many items that can be part of ready for sale inventory.
Whether a business is storing products or later use or they are storing parts to be used later in the creation of products, the business owner must always know what they have on hand. In not knowing, what one already has there is no way the business will function properly .
Mismanagement of funds, profit loss, and theft are some of the most common consequences of poorly managed inventory. In modern business world, greater importance have been put to the control stock, its concern in the management of stock control must be to provide right goods in right condition at the right time. It implies that, the control procedure should be able to:
i. Ensure proper use of stock in business operation.
ii. Ensure the stock is duly accounted for
iii. Safe guarding of stock against loss or misuse.
The management needs to ensure that adequate control procedures for purchasing and controlling of stock in a way that optimum balance is obtained between control and economy.
Therefore the purpose of this research will be to see how information technology can facilitate the stock control system activities in the Nigeria Breweries Plc., Kaduna.
1.2 Statement of the problem
Between 1960s and 1970s, the country witnessed the emergency of many companies in both private and public sectors. However, within a short period of their existence, the operation of this organization started folding –up due to obsolete equipment and fierce competition from companies with better technology and records management.
The Nigeria Breweries Plc. is one of the companies which come into the country in these early periods with its own strength, weaknesses, opportunities and threats. As at that time, general problem that were facing the organization operation is overstocking of materials, delay in the stock control process, decentralization of materials, excessive paper work, lack of proper coordination of stock etc.
All the above problems neglects the objectives of stock control department which is to cut cost an in turn increase the profit of the organization.
1.3 Objective of the study
Apart from the general aim of this research work as a prerequisite for in award of Post Graduate Diploma, the most important significant of this research study is to help the researcher have a wilder view of the course not only in principle but also to have practical experience. The specific objectives are:
i. To know the importance of information technology on stock control
ii. To find out the usage of information technology on stock control
iii. To identify the problems of information technology on stock control
iv. To highlight other avenue of stock control that is given less attention by the organization.
v. To highlight how information technology can reduce cost of stock control in Nigeria Breweries Plc.
1.4 Scope of the study
This research work is confirmed to information technology and its impact on stock control. The Nigerian Breweries Plc is one of the brewers of most alcohol beer and malt drinks in the country. Therefore, the project will be limited to stock control activities as practiced in the organization and consequently using information technology to enhance its value for money.
The findings of the study will be based on the data collected from production, quality control, store and stock control department of the organization of Nigeria Breweries Plc?
1.5 Research Question
To measure information technology and its impact on stock control the researcher has drown up some research questions which are
i. What are the importance of information technology on stock control?
ii. To what extent is the usage of information technology on stock control?
iii. What are the problems of technology on stock control?
iv. How can information technology reduce cost of stock control in Nigeria Breweries?
v. What are other avenue of stock control that is been given less attention by the organization?
1.6 Significance of the study
The study will be significant to management of Nigerian Breweries Plc as it will enable them to know the importance of information technology on stock control as such it made to implement it in their day –to-day activities.
The significance of the study is to asses the impact of information technology on stock control in Nigeria Breweries Plc Kaduna and also to suggest and make recommendation to problems that may likely occur if information technology has not been used to control stock as such the management of other organization will find it useful.
The study will serve as a source of reference material for other scholars and students that will be willing to further study on the subject matter.
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