Get to know the Stores Management objectives ,functions, advantages and disadvantages
Store is an important component of material management since it is a place that keeps the materials in a way by which the materials are well accounted for, are maintained safe, and are available at the time of requirement. Storage is an essential and most vital part of the economic cycle and store management is a specialized function, which can contribute significantly to the overall efficiency and effectiveness of the materials function.
store has a few processes and a space for storage. The
main processes of store are
(i) to receive the incoming materials (receiving),
(ii) to keep the materials as long as they are required for
use (keeping in custody),
(iii) to move them out of store for use (issuing).
Objectives of store management
An efficient stores management has
normally the following main objectives.
To ensure uninterrupted supply of
materials without delay to various users of the organization.
1.
To prevent overstocking and under
stocking of the materials
2.
To ensure safe handling of materials
and prevent their damage.
3.
To protect materials from pilferage,
theft, fire and other risks
4.
To minimize the cost of storage
5.
To ensure proper and continuous
control over the materials.
6.
To ensure most effective utilization
of available storage space
7.
To optimize the efficiency of the
personnel engaged in the store
Store can be of temporary nature which means
that it has a limited life. Store can also be of permanent nature. Stores are
classified basically in the following broad categories.
- Functional stores – Functional stores are named based on the function of
the materials stored. Examples are fuels store, chemicals store, tools
store, raw materials store, spare parts store, equipment store,
refractories store, electric store, explosives store, and finished goods
store etc.
- Physical stores
– Physically stores can be centralized stores or decentralized stores.
These stores are named based on the size and location of the store.
Examples are central store, sub store, department store, site store,
transit stores, receipt store, intermediate store, open yard store,
and covered store etc.
- Stores are also classified by
naming them after the departments to which they serve. Examples are
construction stores, operation stores, rolling mill stores, blast furnace
stores, and steel melting shop stores etc.
- Stores are sometimes classified based on the nature of materials stored in them. Examples are general store, bonded store, perishable store, inflammable store, salvage store, reject store, and quarantine store etc.
Centralized
storage of materials in a central store has advantages as well as certain
disadvantages. The following are the advantages.
- Centralized store can cater to
a wider range of materials which is not possible in a smaller store. Hence
user department is to look for the material of its need only at one place.
- It contributes to the inventory
control in the entire organization since the requirement of all the
departments gets clubbed up.
- It makes better control
feasible.
- It provides economy in storage
space as materials when stored in larger quantities, occupy less specific
space.
- Large stores can be provided
with better and modern handling facilities. The operation can also be
automated.
- Delivery at a single point
decreases cost of delivery.
- Receipt and inspection of the
materials can be organized more efficiently.
- Improved opportunities are
available for the standardization of inventory.
- The turnover of materials is
increased because of the maintenance of lower inventory and the
probability of deterioration of materials during storage is
correspondingly decreased.
- Manpower requirement for
managing of stores get reduced. Also the duplication of records which
takes place in decentralized store system is avoided.
The
disadvantages of a centralized store is as follows.
Distance from the store and the user
department gets increased which requires higher transportation needs from the
store to the user department.
- If there are slippages or
system not being well organized then there can be shortages of the
materials which may results into unnecessary interruptions in production.
- There may be necessity of
additional internal documentation in the store.
- The risks due to the fire and
thefts are higher since the entire stock of the materials are concentrated
at one place.
- The variety of materials to be stored can be large and it can create complications in the systematic storage as well as in storage procedures.
Functions of a store
Store personnel are responsible for carrying
out the following functions.
- Receipt of incoming materials
- Supervision of unloading of
materials and tallying of materials
- Checking for damages or
shortages and preparation of the report
- Filling of ‘goods inward’, ‘day
book’, or ‘daily collection’ register
- Completion of vendors
consignment note (challan)
- Making arrangement for
inspection and getting the inspection completed
- Preparation of ‘goods receipt
note’ (GRN)
- Preparation of ‘goods rejection
memo’ (in case of rejection of materials)
- Sending of materials to the
respective stores
- Sending of the relevant
documents to the respective departments
- Ensuring all storage and
material handling facilities are in proper working order
- Ensuring good housekeeping and
cleanliness in the storage space
- Checking, counting and tallying
of materials before issue
- Making prompt entries in ‘Bin
card’ or stock card
- Ensuring correct documentation
of material receipts and material issues
- Ensuring safe and proper
handling of materials so as not to damage them
- Ensuring proper record keeping
and correct accounting of materials
- Ensuring regular stock
verification
- Ensuring that rules and
regulations relating to physical custody and preservation of materials are
followed
- Ensuring safety of materials
and personnel
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