Dream Land Immigration Company Pvt.Ltd.

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 Displaying Stock
Day-1

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 PMKVY
Government of India

NOS 105
Learning to Display Stock

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 PMKVY
Government of India

NOS 105
Learning to Display Stock
1. Delivery of Stock

2. Processing of Incoming Stock

3. Display Stock

4. Rotating Stock

5. Participating in stock-takes

6. Reordering Stock

7. Damaged Stock

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 PMKVY
Government of India

Display Stock 1. 1. Delivery of Stock

 Every Retail Store, has to

order stock, in order to sell
them.

 Retail Store orders item

from, either company
warehouse, or external
supplier

 The delivery of the stock is

received by the store
employees at the store

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 PMKVY
Government of India

Display Stock 1. 2. Processing Incoming Stock

 Stock Validation – Store

Employee needs to confirm
that goods that were
actually ordered have been
delivered properly.

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 PMKVY
Government of India

Display Stock 1. 2. Processing Incoming Stock

 Stock Receiving– Once

given OK by the store
manager, store employees
will receive the stock

 The stock will either be

recorded electronically or in
a stock book to update the
stock levels in the store.

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 Standard Training & Assessment Reward Scheme
Government of India

Display Stock 1. 2. Processing Incoming Stock

 Stock Pricing–After
recording new stock, the
stock needs to be priced
(Sale Price) so it can be put
out on the shelves to be
sold

 Stock Labeling - After the

final price has been
calculated, one needs to
label the merchandise.

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 PMKVY
Government of India

Display Stock 1. 2. Processing Incoming Stock

 Stock Storing–Once the

goods have been priced and
ticketed they will need to be
stored

 Stocks are either stored at

the “store-reserve” or put
on the floor for selling

 Stock Retrieving - If the

goods are stored in a
reserve, they will need to be
retrieved easily when
required

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 PMKVY
Government of India

Display Stock 1. 3. Display Stock

 Stock Display–Once
required, the goods need to
be displayed in the shelves
 Things to take care of while
displaying
 Check Quantity and
Quality of Goods to
display
 Remove Damaged Stock
 Inform about Missing
Stock
 Clean the stock and the
shelves before display

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 PMKVY
Government of India

Display Stock 1. 4. Rotating Stock

 Stock Rotation – Once sold,

the shelves remain empty.
Replacing empty shelves is
known as Stock Rotation or
Stock Replenishment

 Rotation means that older

stock is displayed for sale
before the newer stock.

 This ensures that the store

always has clean, fresh
merchandise to sell and
therefore maintains an
appealing image to
customers

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 PMKVY
Government of India

Display Stock 1. 5. Stock Take

 Stock Take - Stock-take is

the actual counting of every
item of stock in the store.
These figures are then
compared to the store's
“stock-book” records to
show a store's gross profit

 Stocktaking is usually done

yearly and half-yearly as it
is a legal taxation and audit
requirement

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 PMKVY
Government of India

Display Stock 6. Re-ordering Stock

 Stock Re-ordering - Sufficient

stock must be on hand to
supply customer’s needs.
Hence, Minimum stock levels
should be checked regularly to
maintain an adequate supply.

 Stock ordering is done by

forecasting automated systems,
which takes into view the sales
that may happen, and the time
it would take for the stock to
be delivered.

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 PMKVY
Government of India

Display Stock 7. Damaged Stock

 Dispatching Goods - All goods

that meet the following criteria,
need to be sent back to the
supplier:
 Damaged Stock
 Soiled Stock
 Oversupply Stock
 Incorrect Stock

 Goods for dispatch must be

held in the designated area of
the reserve. This will ensure
they are returned and
processed promptly.

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 PMKVY
Government of India

Display Stock – Summary

Stock Pricing and Stock Storing and

Delivery of Stock Stock Validation Stock Receiving
Labeling Retrieving

Stock Display Stock Rotation Stock Take Stock Re-ordering Damaged Stock

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A. Delivery of Stock
 The process starts with the store sending a purchase order
to order the goods
 The goods are either sent by a supplier or company’s
warehouse which sends an invoice with the delivery. The
invoice lists every item in the delivery
 Goods that arrive at the store need to be received and
processed correctly
 Receiving goods involves checking that the number of
cartons delivered corresponds with the delivery docket
 Processing involves unpacking the goods, checking and
validating them, and then dispatching them to the right
area or department within the store
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PMKVY
Government of India
Receiving Bay
• Stock that arrives at your store comes to the receiving
bay. The receiving bay at a department store is the
delivery dock at the back of the store where trucks pull
in to unload cartons.
• A small store like Claire’s may not have a delivery
dock. Instead, the goods are received in the reserve at
the shop.
• The receiving bay must be kept clean and orderly so
that stock can be brought in and processed quickly
and efficiently.
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B. Processing Incoming Goods (1. Stock Validation)
 The next step is to confirm that these goods were actually
ordered and that every item ordered has been delivered.
 When a delivery arrives, the driver will present a delivery
docket with the goods.
 The Store Personnel needs to check that the store and
address on the delivery docket are correct.
 Then the number of cartons received must correspond with
the number of cartons on the delivery docket.
 The Store Personnel should also count the cartons before
signing for the delivery
 Goods that have been unpacked need to be checked against
the purchase order and invoice
 If the information in the purchase order matches the
information in the invoice, the store can pay the supplier. If
not, then the store needs to withhold payment and inform
the supplier.
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PMKVY
Government of India
Purchase Order
• A purchase order (PO) is a commercial document and
first official offer issued by a buyer to a seller, indicating
types, quantities, and agreed prices for products or
services the seller will provide to the buyer
• It is used to control the purchasing of products and
services from external suppliers
• Acceptance of a purchase order by a seller usually forms
a contract between the buyer and seller, so no contract
exists until the purchase order is accepted
Invoice
• An invoice or bill is a commercial document issued by a
seller to a buyer, indicating the products, quantities,
and agreed prices for products or services the seller has
provided the buyer
• Payment terms are usually included on the invoice
• The buyer could have already paid for the products or
services listed on the invoice.
• Buyer can also have a maximum number of days in
which to pay for these goods and is sometimes offered a
discount if paid before the due date.
Sample : Purchase
Order
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 PMKVY
Government of India

B. Processing Incoming Goods (2. Stock Receiving)

 Remove the goods from the packaging and place on the

benches in the receiving bay.
 Use the safety knife to open all packaging. Remember to cut
away from one’s body to prevent accidents. Don’t use hands Video
or teeth to rip open cartons or bags. Stock Receiving
 The packaging must be disposed of in the rubbish bin or
the recycle bin, as appropriate.
 The cartons must be immediately lined and placed
appropriately for pick-up later
 From here, goods are either sent to the store reserve or the Store Reserve
display shelves Section
 Any incorrect, damaged or out-of-date stock • Location within a store, where all the stock is stored. It
is from this place, that the stock is taken and displayed
O Goods that are incorrect, damaged or out-of-date must be returned to the in the shelves.
supplier. A completed claim form must accompany the goods on dispatch
O All goods must have a ticket attached before they are stored in the reserve Labels
or department. Tickets must be attached firmly and placed on the
merchandise so they can be easily located in the future
• The Labels which have details indicated for the item or
the carton. This helps in accurately defining the exact
stock and identifying its location in the future

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 PMKVY
Government of India

B. Processing Incoming Goods (2. Stock Receiving)

O When the goods have been priced they can be stored immediately in the
reserve, unless special requirements apply. Each department has its own storage
Damaged Stock
area within the reserve.
• Any stock that has been damaged during transportation,
 Fragile goods must be given adequate storage space to or is not adequate as per quality norms of the store
prevent breakages.

Requisition Form
 Once goods are finalized, goods that have been received
and ticketed must be recorded on the store stock system.
• Form filled by store employees to request stock from the
This will ensure that accurate stock records are kept at all reserve area to be displayed in the store shelves
times. Stores will either record these stock levels
electronically or in a stock book

 If sent to reserves, goods may be sent to the department

only when a Requisition Form has been authorized from
that department. This Requisition Form must be recorded
against the store stock system chart to ensure accurate
stock records are kept at all times.

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 PMKVY
Government of India

B. Processing Incoming Goods (3. Stock Pricing and Labeling)

Cost Price
 After recording new stock in the store stock system, it
needs to be priced so it can be put out on the shelves to be • The Cost Price includes:
sold • the cost of the goods
• less any discounts from the supplier
 The Selling Price of a product is determined by adding the • Plus freight charges
Markup to the Cost Price of the product. (You may have to
add the Goods and Services Tax if this tax applies to the Mark-Up
product)
• The Mark up includes:
 The Goods and Services Tax (GST) is collected by retail • a percentage of your store's operating costs
• Plus a profit
stores on behalf of the government. The GST is 10% of the
selling price. It is added to many goods to determine the Mark-Down
final Selling Price that goes on the ticket
 After the final price has been calculated, one needs to label • The Mark down includes:
• a percentage of your store’s selling price
the merchandise. • Minus a discount
 Some stores have an individual price ticket for each item. Price Labels and Bar
Other stores use barcodes on the merchandise so that the Codes
price is displayed on the shelf ticket • A label is a piece of paper or other material affixed to an article, on which is
printed a legend, information concerning the product, addresses, etc.
• A barcode is an optical machine-readable representation of data relating to
the object to which it is attached. Originally barcodes systematically
represented data by varying the widths and spacing of parallel lines

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 PMKVY
Government of India

B. Processing Incoming Goods (4. Stock Storing and Retrieving)

 Once the goods have been priced and ticketed they will
Requisition Form
need to be put on the floor for selling, or stored in an
appropriate place.
• Form filled by store employees to request stock from the
 These things need to be considered when storing goods: reserve area to be displayed in the store shelves
o Easy access by sales staff.
o Occupational Health and Safety issues.
O The amount of room available.
 If the goods are stored in a reserve, they will need to be
retrieved easily when required.
 Staff must complete a Requisition Form before stock is
dispatched from the reserve to the department. This will
ensure that:
O stock is accounted for at all times to avoid theft
O the goods are dispatched to the correct department
O Accurate stock figures are provided

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 PMKVY
Government of India

C. Display of Stock

 Prior to display of stock, one needs to ensure

o Check the quantity and quality after delivery
o Deal with damaged and missing stock after delivery
o Inform Supervisor of any damaged or missing stock

 Avoid the situation of stock out by frequently

communicating with the buying office or store manager. By
doing this, all staff members can be aware of planned
promotions, target markets and be informed of new stock
items and trends for the new season

 An empty looking store or an overcrowded store will impact

badly on sales. In order to display appropriately:
O Re-stock shelves and display stands from stock in reserve
O Fax or email all order requests to the buying department with an order
number
O File order forms in due date order Stock Out
O Place orders on a regular basis; weekly or more often if required
• The situation when there is no stock of a particular item,
to display in the store

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 PMKVY
Government of India

D. Stock Rotation

 When merchandise is sold from the fixtures, it needs to be

replaced with stock from the reserve. Customers can't buy
First-In First-Out
merchandise from the reserve, so the fixtures must be filled • Under FIFO, the goods you receive first are the goods
regularly. you sell first

• Stock which is brought to the store initially is the first

 Stock rotation means that older stock is displayed for sale to be placed in the shelves. During replacement, stocks
are replaced as per the last arrival date
before the newer stock. This ensures that the store always
has clean, fresh merchandise to sell and therefore
maintains an appealing image to customers
FIFO Principles

 One must follow the FIFO system of stock rotation. That • Document to discuss on various FIFO Principles

means the goods that are first into the store must also be
the first to go out of the store with the customer. Check all
dates before you put stock onto the fixtures

 Carry out stock rotation procedures for merchandise and

wrapping and packing materials routinely and accurately
according to store policy

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 PMKVY
Government of India

E. Stock Take

 Stocktaking is usually done yearly and half-yearly as it is a

legal taxation and audit requirement. Stock-take figures are
also used to:
O Determine the total dollar value of a brand or a Department or Store. Video
O Identify slow sellers and best sellers in a product range.
Shrinkage : Employee Training
O Provide figures for profit and loss statements

 Shrinkage happens across the supply chain of retail.

Possible valid reasons for shrinkage:
O Goods expire or go past their Use by date
O Thefts sometimes occur
O Items are wrongly priced
O Goods sometimes are accidentally damaged
O Display items get damaged or soiled

Shrinkage
• Shrinkage is loss of stock in the retail stores. This can
happen for various reasons in the store including theft,
wrongly priced items, damaged goods etc..

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 PMKVY
Government of India

F. Re-Ordering Stock

 Sufficient stock must be on hand to supply customer’s Minimum Stock

needs. Hence, Minimum stock levels should be checked Level
regularly to maintain an adequate supply.
• Every store defines a minimum stock level for each of
 Stock ordering is done by forecasting the sales that may the items, to ensure that there is no stock-out.
happen, and the time it would take for the stock to be
delivered.
 Automated systems in stores help in estimating reordering Automated Re-
stock. As an employee, if you do not find enough stock in ordering
the shelves, speak to your manager apprising him that stock • Automated Re-ordering systems exist in the stores
levels are running low. which define both the minimum stock level and
frequency for ordering products in what quantity
 Sometimes stock that has been ordered does not arrive as
expected. What to do when this happens: -
O Find out why this has happened. Check the invoice and phone the supplier
if necessary.
O Notify staff members of the reason for the delay so they can inform
customers when necessary.
O Place a ‘Temporarily Unavailable’ ticket on the shelf, if appropriate.

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 PMKVY
Government of India

G. Dispatching Goods

 All goods that need to be sent back to the supplier must be

done according to store procedures Damaged Stock
 Identify the reason for the Damaged Stock • Store employees need to discard damaged stock from
 Damaged Stock the store. The various reasons for damaged stock could
 Soiled Stock be damages, soil, oversupply or incorrect quantity
 Oversupply Stock
 Incorrect Stock
 Package goods carefully so as to avoid damage in transit. Credit Request Note
 Complete a credit request form. Check that the
• Filling up a form which details the damaged stock. The
documentation has been completed accurately – name, credit request note is sent to the supplier for him to pay
address, reason for return, pricing, and special delivery back to the store for damaged stock supplied by him
instructions.
 Goods for dispatch must be held in the designated area of
the reserve. This will ensure they are returned and
processed promptly.

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