Introduction Of Stores Department

 Introduction

                  Stores Management refers to the systematic control of materials and goods in a store or in warehouse to ensure the right materials are available in the right quantity, at the right time, and at the lowest possible cost.

                  In supply chain activity , the process will starts from Stores department. Stores department get materials such as raw materials & consumables requisition from production department or its internal clients such as account departments, marketing departments, maintenance and admin. 

                 Then stores will check the materials stock or its availability in its. If stores have materials then he will issue the same. And if he is not having the stock. Then he is forward the materials requisition to the purchase department for procurement. 

                  In materials requisition clearly mentioned the materials type, qty, make and when it required. Then after that purchase department will work on it. If requisition raised by production department, then it is mandatory that stores person will check the raw materials stock , semi finished goods stock and finished goods stock. After that stores will hand over the requisition to purchase department for purchase the materials. 

Main functions of stores management 

1) Receiving the materials - Receiving of materials refers to the systematic procedure of inspecting, recording, and accepting incoming supplies to ensure they meet organizational requirements.

2) Storing the materials - Storage of materials involves organizing and placing of goods in appropriate locations to ensure safety, easy retrieval, and efficient space utilization.

3) Preservation of materials - The process Materials preservation involves safeguarding inventory through proper handling, storage conditions, and preventive measures to maintain quality and usability.

4) Issuing of  materials - Material issuing involves releasing inventory to users based on approved requisitions while ensuring accurate quantity and proper documentation.

5) Record keeping of materials - This process refers to the organized maintenance of inventory records, including receipts, issues, and balances, for effective control and audit purposes.

6) Controlling the stocks - Stock control involves monitoring and regulating inventory to ensure optimum stock levels are maintained at all times.

Common tools & techniques used in stores management

1) FIFO - FIFO (First-In, First-Out) method in stores management is an inventory system in which the materials that are received first are issued or used first.

This method helps to:

·         Prevent expiry and deterioration of materials

·         Reduce wastage

·         Maintain better stock rotation

·         Ensure quality of goods in use

2) LIFO - LIFO (Last-In, First-Out) method in stores management is an inventory system in which the materials that are received last are issued or used first.

This method helps organizations:

·         Match recent purchase costs with current usage

·         Control inventory valuation during price changes

·         Manage stock flow based on operational needs

3)  ABC Analysis - It is an inventory control technique that classifies materials into three categories — A, B, and C — based on their value and importance to the organization.

·         A items: High-value items with low quantity but high impact on cost

·         B items: Medium-value items with moderate control required

·         C items: Low-value items with high quantity but low cost impact

This method helps in focusing control and attention on the most important materials, improving efficiency and cost management.

4) EOQ (Economic Order Quantity) - It is the optimum quantity of materials that a company should order each time to minimize the total cost of ordering and carrying inventory.

It helps organizations:

·         Reduce ordering costs

·         Lower storage and holding costs

·         Avoid overstocking and stock-outs

·         Improve inventory efficiency

5)  Barcode and RFID systems - In stores are automated technologies used to track, identify, and manage materials efficiently within a warehouse or store.

·         Barcode system: Uses printed codes on items that are scanned to record and monitor stock movement.

·         RFID system: Uses radio-frequency tags to automatically identify and track items without the need for direct scanning.

These systems help ensure accurate inventory records, faster operations, and better stocks control

6) ERP (Enterprise Resource Planning) software - In stores is a comprehensive system used to manage and integrate all inventory and store-related activities, including purchasing, receiving, storing, issuing, and tracking materials.

·         Examples include SAP, Oracle, and Microsoft Dynamics.

·         ERP systems provide real-time stock information, streamline processes, reduce errors, and improve decision-making.

In short, ERP ensures efficient, accurate, and centralized control of store operations.

Conclusion

                              Stores Management is a critical function in any organization that deals with materials, goods, or products. It involves the systematic control of materials in a store or warehouse to ensure that the right items are available in the right quantity, at the right time, and at the lowest possible cost. Efficient stores management not only supports smooth production and operations but also contributes to cost savings, waste reduction, and improved customer satisfaction.

                      Effective stores management is a cornerstone of organizational success. By combining proper procedures, modern techniques, and technology like ERP, barcode, and RFID systems, organizations can ensure optimal inventory control, reduce costs, and enhance operational efficiency. Whether it’s receiving, storing, preserving, or issuing materials, every step in stores management contributes to a seamless and productive workflow.

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