Stores Management

 

Introduction 

          Stores is a place or building where we kept the stock of materials or goods for use as needed. That materials can be Raw Materials, Semi Finished Goods, Finished Goods, Consumables, General Hardware And Electricals, Oil And Paints, etc.

            The person who is incharge or supervise the stock of materials or stores is called Store Keeper or Stores Manager.

            The type of stores depends on the layout of the factory, production of goods, distance from sources of raw materials, frequency of purchase and issue of materials. 

Objectives Of Stores Management    

            The objectives of stores management play a vital role in the operations of company. It is direct touch with the users department in its day to day activities. The user departments are in industries Purchase, Production, Quality, Sales, Dispatch, HR And Finance. 

           The main objectives of stores department is to provide uninterrupted services or materials to the production department. 

Functions Of Stores Management 

    The functions of stores are as follows: 

1) To receive the materials or goods from the vendors or suppliers, the materials are raw materials, consumables, tools, equipment, machine spares, components, general hardware and electrical items, etc.

2) Codification and classification of each materials or goods as per their category. And provide proper storage and preservations to the items. 

3) To minimize wastage and surplus of stocks by taking proper and accurate record of each goods and materials. 

4) To issue the materials to the consuming department as per issuing slip and accounting for the consumption. 

5) To highlight the issues such as shortage and rejected receiving materials from vendors, stock accumulation, discrepancies and abnormal consumptions of materials. 

6) To assist in verification and provide supporting information to the purchase and finance department at the time of banking and ISO audits. 

7) To maintained the data of receiving stocks and issuing stock of materials and balance available stocks.

8) To minimize the cost of shortage. 

9) Preparation of GIN (Goods Inward Notes) or GRN (Goods Received Notes) as per receiving materials. 

10) Monthly checking the stock or inventory level of materials and informed to purchase department for initiate the procurement process. 

11) To ensuring proper record keeping and correct accounting of materials. 

12) To ensuring good house keeping and cleanliness in the storage spaces.      

     

Advantages Of Stores Management  

               The stores management activities is directly related to the materials management activities. Which is used for production department to produce or manufactured the products as per clients requirement. 

The advantages of stores management are as follows:

1) Tracking of raw materials and consumable materials (General Hardware, Electrical Parts, Machine Spares, etc.) consumption.

2) Quick communication with purchase departments and various suppliers. 

3) Economy in storage space and materials handling. 

4) Better internal control on the movement of inventory or stock. 

5) Controlled inventory level.

6) Storage and preservation. 

7) Easy identification of all stored materials and goods.

8) Easy to costing and accounting of stored materials and goods. 

9) Protects from fluctuations in demand. 

10) Helps in giving better services to the internal departments such as Purchase, Finance, Production, Sales, HR & Logistics.

11) Avoid duplication in ordering of stocks or goods.

Conclusion  

                          From the above information we are understood the basics of stores management, Stores Functions ,objectives, and its advantages. 

We know the importance of stores management to the Production, Purchase, HR, Quality And Logistics department.