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Processes for acquiring resources

This page is designed to answer the following questions:

Sourcing and acquiring resources in a timely and efficient manner as well as ensuring adequate (but not excessive) stockpiles are essential component of effective resource management. For this assessment criteria, you will need to evaluate processes for acquirement of adequate resources, which can include; acquiring stock, stock management, auditing and the storage of invoices.

This will require analysing the strengths and weaknesses of you current processes and assessing whether they are adequate or could be improved.

Acquiring stock

The acqisition of stock involves sourcing suppliers that can provide the best value for your organisation’s needs. Cost will be one aspect of this but other factors will need to be considered such as delivery times and the ease of the ordering process. Other factors, such as a supplier’s commitment to sustainability may also be considered. You may maintain a list of preferred suppliers, which are used regularly. Forming strong relationships with suppliers and negotiating terms will also be important.

Stock management

Processes should also be in place for stock management and control. This will include that there is adequate storage and enough stock to fulfil short-term obligations. When stock is running low, there should be processes in place to ensure that it is replenished – this could simply involve frontline staff reporting low stock levels to their manager. Care should also be taken to ensure that there is no overstock (especially for perishable goods such as food or medication) which could lead to wasteage.

Auditing

A stock audit is the physical verification of an organisation’s assets, which usually occurs anually. This ensures that recorded assets match up with actual assets and can be used to highlight issues with missing stock as well as stock levels that are too high or too low. Records about the upkeep of assets should also be audited to ensure compliance with the law. This may include ensuring mechanical equipment is regularly serviced and checked for safety.

Storage of invoices

Invoices should be stored securely and processes should be in place to ensure this. Retention of invoices is a legal requirement and they will be needed when drawing up the annual accounts. Therefore, any employees that handle invoices should understand how they should be handled.