Computerization of Stock Control System (a Case Study of Nigerian Bottling Company Plc, Coca-cola Owerri Depot)



This research work is concise and generally summarizes the activities duly carried out in the computerization of stock control system for a manufacturing organization. The system is designed to efficiently handle the movement and tracking of goods through the replacement of human workers by technology. The manual method or intervention is labour intensive, costly, and error prone and cannot ensure the Stock remains up-to-date due to oversight and internal shrinkage. With the proposed new system, Stock can be updated in real time without product movement, scanning, or human involvement. The automated system allows Stock status to be determined and shipping and receiving documents to be generated automatically triggering automatic orders for products that are low in Stock. The study outlines the main concepts of the analysis and design methodology of the proposed system, compares it to the existing and goes further to explain the design and implementation of the system using Visual Basic .Net for the database. The fact finding techniques employed is interview, observation, online and library research.



1.0     Introduction

This research work is concerned with the development of an efficient, reliable and accounts method of stock control system in Nigeria Bottling Company plc, Coca-cola Depot, Owerri.

          This is made possible by the use of computer, through efficient programming activity.

Stock control is techniques designed to determined and implement at any given time the holdings of an organization, keeping them in an optimum stock level. The limit of product that a company has in stock to sell at any given time it is inventory. The stock control ensures that tacks of the numbers of unit of each product in inventory and ensures that reasonable quantities of products are maintained. Primarily, it is concerned with the technique of what to order, the method of ordering and how to keep proper record of the order. Its effectiveness is determined by the accuracy of data and the speed of measuring, accessing and adjusts stock levels. It is here necessary for centralized stock control unit to be aware continuously of the stock situation in number of widely separated store.

          Today, a large growing number of significant invoicing, stock control and pay accounting will be performed by computer. Number of computer based techniques exists for the aim of recordings and processing data relating to stock movement.


          The case study was done at Coca-cola depot Owerri, which have been operating their stock control system manually. The computerization of their stock control will make way for a more effective, efficient and reliable stock control taking.

One of the effective ways in stock control is the collection of data at the point of sale or order and the recording on small portable computer entry terminal of the information. Then a central computer of the main computer room records, processed and analyses the data being received from the warehouse. The adoption of computer system by many organizations testifies to the belief in the ability of electronic data processing to contribute to the solution of some commercial management.

1.1     Background of the Study

The Coca-Cola Bottling Company was introduced in 1886 by RUSSEL in USA. Coca-cola is the leading soft drink in the world in more than a hundred and seventy countries throughout the world.  This drink is distributed to all over the world in day-by-day services.

This company was introduced in Nigeria in 1953 when the first plant was set up at Lagos. We now have about eleven coca-cola plants in Nigeria. The one serving Owerri depot is also situated at Owerri.  

The Nigeria Bottling Company (NBC) is today the Nigeria number one bottler of soft drink, selling more than four million bottlers per day. The success of coca-cola has brought development to a number of industries such as Delta Glass company in Ughelli which supplies the millions of bottles used, the Crown products factories in Ijebu-Ode and Kano which manufactures metal crown to seal the bottles, the Benin plastic company which makes the plastic crates for carrying the bottles, all of them contributes to the growth of the Nigeria economy.

The NBC Company has over fifteen thousand Nigeria workers in all field of operation. The Nigeria bottling company Plc, Owerri depot is a marketing division of the branch office plant at Owerri. this depot started their operation in 1993, during this period, the depot as a newly established depot had only one delivery van and also at that time the method of stock control was manual method but as for now the depot is still operating their stock control in a manual method but in terms of delivery van the depot now have more than one van and more so in size, the company is striving very hard in some other neighboring villages around such as Orlu, Okigwe etc.  

Now the way forward is the computerization of stock control system.

1.2     Statement of the Problem

Computer has been produced to reduce mans problems. In Nigeria Bottling Company  Plc, Coca-cola depot Owerri, decision making concerning any stock may be needed quickly, but in most cases, information (records) that should be given in a few minutes have taken hours, weeks and months for them to be retrieved since stock record were kept and managed manually, problems were in counted, some of these problems includes;

  1. Inaccuracy of data
  2. Ineffectiveness of system
  3. It is time consuming
  4. It also causes different items to reach re-ordering level at the same time
  5. Difficulty in removing out-dated information (records)
  6. Sometimes records are lost in transit due to the fact that humans are prone to make mistakes.

The most means for solving this problem is suggested and how it can contribute to the effectiveness and efficiently of NBC, Coca-cola depot Owerri and other depot that may need it.

1.3     Objectives of the study

The main aim of the study is to evaluate better ways of making the stock control system of Owerri Coca-Cola depot more effective and efficient.

By computerizing their stock control system, the researcher is aimed at maximizing the procedures or activities involved in order to reduce cost and to ensure accurate information and document of all related records.

To achieve this aim the following objective will be considered.

  1. To examine the present mode of controlling stock.
  2. To find out the problems associated with the present mode.
  3.  To define the input/output specification required for a new system.
  4. To design the controlling system suitable for the company.


1.4     Significance of the Study

The research study is aimed at eliminating the manual system of stock control system. It also aims at educating the entire staff of NBC, Coca-cola depot, Owerri and most computer-based enterprise. Because the system will give information regarding items which have fallen to re-order level and can also be programmed to issue replenishment order, thereby

  1. Conquering the problems in counted in the manual system where the reordering system is overloaded
  2. Moreover, the research work will be of immense benefits to the future researcher on the same problem because the approach to the fact finding was not a passive exercise rather all information was examined.

1.5     Scope of the Study

The research project was only restricted to the department of stock in NBC Coca-cola depot, Owerri.

The following is done periodically;

  1. Physical checking of stock with the view to ascertain the level of each item
  2. Keeping accurate records of all entries
  3. Insurance and transfer of these items
  4. Determination and review of the stock control level.

For the above functions to be carried out in this department, I found it reasonable to limit my research to this department since it has direct concern to my topic. The repot cannot only be applied to NBC, Owerri depot stock control but     also to any other establishment that wish to go on computerization of their stock control section.

1.6     limitation of the Study

The researcher in the evaluation of his work was faced with the following constraints.

  1. FINANCE: Money which was involved in transportation, purchase and photocopying of some research material both from the market, online and libraries.
  2. TIME: Valuable hours too were invested into welting to be attended to by staff and other respondents.

All these were strong influences against the progress and completion of the project.

1.7 Definition of Terms

STOCK: This is defined as the store of goods available for sales, distribution or use in the store.

STOCK CONTROL: This can be defined as the system used in a firm or company to control their investment in stock, it involves recording and monitoring of stock levels.

ORDER: This is used to request for the supply of goods.

OUT-OF-STOCK: This is used to describe where a product placed for order is not found in stock.

BIN CARD: This is the store keeper’s record of movement of “IN” and “OUT” of the stock under his control.

ORDERING STOCK LEVEL: This is the amount of issue at which ordering is indicated in time for the material to be achieved before stock fall below the medium level.  

STOCK RECORDS: This is a medium, which records particulars of receipts and balance of stocks.

QUANTITY RE-ORDERS: It is the level of stocks at which further replenishment order should not be placed.

MINIMUM LEVEL:  This is the amount of issues below the stock of any commodity should not be allowed to fall.

MAXIMUM LEVEL: A stock calculated as the maximum desirable, which is used as an indicator to management to show when stock have risen to high.

LEAD TIME: It is the time interval between the time an order is placed and its arrival in stock.

STOCK TAKING: A situation of making a list of all the stock in a store.   



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