CHAPTER ONE
1.1 INTRODUCTION
1.2 BACKGROUND OF THE STUDY
Security, as an important fact has been discovered as the most necessary activities carried out in every organization. Because the materials of an organization or an industry determines its level of survival. Security is the duty of the management and is one of the most essential areas of stores management. It covers various areas angles including theft, fraud, stock determination, damage and specific materials for storage constitute money and have been bought to meet certain needs. To ensure those materials satisfy the need for its existence and to avoid unnecessary cash loss arising from losing of materials because of faulty security which therefore affects the profit margin of the organization. When this improvement or development has been achieved, every organization then realize how important it is for an organization or and industry to invest more on security of stores.
This is so for any oriented organization security as one of the most important and necessary aspect or area of store management.
Security of stores on a general aspect covers not only theft and fraud, but. It reaches to the aspect of stock deterioration (loss in value), damage, location and special storage requirements. An oriented organization will decide to seek the service of professional security outfit that supply a trained team of security guards and other personnel to guard against theft. Alternatively, industry or organization might give this responsibility of store security on an individual stock keeper or manager for the stock held in their charge, as a result of this, many industries or organizations depend this responsibility of store security on stock keeper to control store security. Store security and its softly is one of the most necessary aspect of concern in stores management as a result of the need to protect and guide the company’s huge investment in stock. Every goods or product of any company must be valued to the company, if not valued by the company should not have been in stock.
According to Morrison (167:9) if stock is to be adequately safeguarded, it must have to be properly located and arranged in a highly secured buildings or stockyards to which unauthorized person or persons are not allowed to have access into it. Its arrangement and management must be made for the custody of store house keys and security precautions exercised during no-working hours to ensure maximum security to be achieved.
Data (1986:17) states that materials must be properly safeguarded and kept under proper security and vigilance.
However, he pointed out that the effort, time and expenditure of money should be proportionate and relative to the importance of the materials and that cost of security must be commensurate with the benefits which may occur from security measure.
The role of store security is very important which according to carter and price (1993:10) reflects both the value of stock and the roles of its operation within the organization. They added that if stock is lost and also not recorded stock recoding becomes meaningless and useless as a means of stock control. The calculated level of stock indicated by the stock and will bear no resemblance to the actual stock hold. Operating on production will be highly hampered when stores security functions are not properly and effectively carried out. The basis store security function is that of holding stock, thus the need for proper stock control becomes imperative.
According to Morrison (1987:9) said, that stock control involves activities designed towards the effectives management and control of all inventory items held in stock. The word stock represents a major and important part of the organizational working capital money, therefore, any stock costs because of theft, fraud or damage that they encounter on the process will have to be replaced which will increase the organization costs and reduce its profits. The value of stock cost every year is impossible to calculate, hence the figure must run into billions of naira to which must be added the loss of profits and revenue arising from production hold ups and lost contracts.
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