Meaning and Definition of Store Management
Store management refers to efficient management of materials. Store management is concerned with ensuring that all the activities involved in store keeping are carried out efficiently and economically by those employed in the store.
Stores form the basis of material management. Stores play a vital role in the operations of a company. In an organization, stores are mainly intended to provide staff activity in the production of goods or services. No industrial unit or public undertaking of any size can be managed efficiently without it. The basic objective of store keeping is to provide services to the operating functions in the most economical manner.
According to Afford and Beatty___” Store management is that aspect of material control concerned with the physical storage of goods”.
According to Maynard___” Store management is to receive materials, to protect them while in storage from damage and unauthorized removal, to issue the materials in the right quantities, at the right time to the right place and to provide these services promptly and at least cost“.
Objectives of Store Management
- Minimizing cost of production through minimizing cost on materials
- Maintaining the value of materials
- Services to User departments
- Establishing Co-ordination with other Departments
- Advising Materials managers
Functions of Store Department
- Receipt: It receives and accounts inventories.
- Storage: It stores and preserves the inventories protecting them from damage,pilferage and deterioration.
- Retrieval: It helps easy accessibility to materials and ensures optimum space utilization. Materials can be located and retrieved with ease.
- Issue: It satisfies the demands of consuming departments by proper issue of inventories on receiving the requisitions.
- Records: It keeps proper records of the issue and receipts.
- HouseKeeping: The space is kept neat and clean so that material handling, preservation,storage,issue and receipt is done satisfactorily.
- Surplus Stock: Scrap and surplus disposal management is a function of stores.
- Verification: Physical verification and purchase initiation to avoid stock-outs.
- Co-ordination and Co-operation: To interface with production and inspection department.
Types of Stores
- Main or Centralized Stores: A central store is generally a ‘wholesale’ supplier to other units, departments or sub-stores which operate on a retail basis issuing goods directly to users. All material is received and issued by one central store.
- Branch or Decentralized Stores: Decentralized or branch stores are provided in the plants which are considerably large in size and where one main store cannot meet the requirements of the plant without wast of time and inconvenience.
- Central store with sub-stores: A very big factory having a large number of product lines may have this type of storage system. It has a main store which can serve as a base with sub-stores for each unit of production,preferably located as near the unit as possible. The sub-stores draw its requirements from the main store for a certain period, say, a fortnight or a month. This fixed quantity of material to the particular department is known as Float or impress. After the completion of the determined period, the storekeeper of the sub-store will give the description of the material consumed, and will issue quantity of material equal to the material consumed to bring the level to the replenishment level. This system of issuing and controlling of materials is known as periodic system of stores control.
- Warehouse: Warehouses are the godowns which take the responsibility of keeping and storing goods and providing ancillary services in order to help the small and medium-size traders and manufacturers who,because of technical and economic reasons, may not like to have their own storehouses. These warehouses undertake to preserve the goods in a scientific and systematic manner so as to maintain their original value, quality and usefulness. They charge a certain prescribed rent at a fixed rate in advance.
- Tools and Miscellaneous Stores: Tools and miscellaneous stores are equipped with all the necessary tools needed by the productions and other shops. The stock of tools must be maintained with due regard to the requirements of the work. This store is responsible for issuing tools, spare parts and other accessories to different departments.