Store Management - Introduction (IEM Material Purchase and Store 22March 2021)

Store Management - Introduction

A storehouse is a building provided for preserving materials, stores and finished goods. The in-charge of store is called storekeeper or stores manager. The organisation of the stores department depends upon the size and layout of the factory, nature of the materials stored and frequency of purchases and issue of materials.

According to Alford and Beatty “storekeeping is that aspect of material control concerned with the physical storage of goods.” In other words, storekeeping relates to art of preserving raw materials, work-in-progress and finished goods in the stores.

 

Functions of a Store Department

The store’s function is important for many organisations and industrial concerns.

Functions of a Store # 1. Primary Functions:

The main objective of the store is to provide necessary inputs to the production/op­erations departments at a minimum cost.

To ensure this the following activities are to be performed:

(i) To make available a balanced flow of raw materials, components, tools, equipment and other stores required for operation.

(ii) To provide maintenance materials, spare parts and general stores as required.

(iii) To receive and issue materials after physical inspection and proper identifi­cation.

(iv) To store and preserve materials.

(v) To ensure safety and security of materials.

(vi) To arrange for collection, acceptance of scrap and other discarded materials for disposal.

 

Functions of a Store # 2. Secondary Functions:

The secondary activities related to the stores functions are:

1. Collection, inspection and acceptance

2. Store’s accounting.

3. Stock control

4. Feedback information to materials control section

5. Help in standardisation and variety reduction

 

6. Service information such as:

(a) Demand for materials and parts giving specification, quantities and deliveries required

(b) Notification when stocks are running low

(c) Details of deliveries rejected on inspection

(d) Certification of invoices for quantity and quality

(e) Particulars of anticipated changes in consumption

(f) Procurement of items urgently required in case of breakdowns

(g) Listing of obsolete, surplus and scrap materials for disposal.

 

Location and Layout of a Store

Location of a Store:

(a) Centralised Store:

In small factories, it is desirable to centralise the materials so that they may be brought under the control of one store-keeper and the store-room should be as far as possible near the place, where material is to be used.

If there are several manufacturing departments, the store-room will be most conveniently situated, where it is near to all depart­ments. This will reduce handling and a lot of manual work is eliminated. This type is called Centralised Store.

 

(b) Decentralised Store:

In large factories, where there are several departments, each using different type of materials, it becomes beneficial to separate the stores.

For example, near the welding department, store the materials required for welding; near the foundry department, store the items which are used there; near assembly department, store the parts that are required there and so on.

Some stores that are common to several or all departments, as for example, soap, station­ary, printed forms, cotton waste etc., should be kept at a central place.

This type is known as Decentralised Store.