INTRODUCTION TO STORE MANAGEMENT
This is the process by which management functions of planning. controlling, motivating, organizing and staffing are put in operation in order to ensure that goods are easily identified, secured and accessible. Store management is concerned with ensuring that all the activities in storekeeping and control are carried out efficiently and economically by the store personnel. It is an aspect of material management which is concerned with not only the storage of goods but also how to identify and make them available to meet demand.
Store management plays a major role in the success and profitability of an organization. The way the store is managed can have positive and negative influence on the organization. It ensures the optimizing of the resources of an organization in order to meet their needs. Efficient store management will prevent or reduce shortage of stocks and ensures that replacements are received on time.
Objectives of studying store management The main objective of this course is to teach the students the major fundamentals of running a store. This will go a long way in enabling a person to develop interest in customer satisfaction. Moreover, it enables learners to develop entrepreneur ability in order to be able to manage a business successfully.
Meaning of Store
Store is a room, building or place where materials, semi-finished goods, spare parts and finished goods are kept until they are needed. Simply put, it is a place where all the items and materials needed for production or sales are received, housed and issued out as required. The store acts as a custodian and controlling agents for parts, supplies and materials to be provided to users of those goods.
Examples of store
1. Retail Stores: These are stores set up to keep goods which are sold in units to the customers. A retailer needs store house to keep goods to be old to the buyers.
2. Wholesale Stores: Goods purchased by the wholesalers from the producers in large quantities are normally kept in this store. It is necessary for the wholesaler to have store to keep goods until they are sold in small quantities to the retailers.
3. Manufacturing Organization: A manufacturing concern also requires a place to keep materials and components. These materials will be requested from the store when they are needed for production. 4. Service Organization: Organizations that provide services like repairs and maintenance of vehicles for the consumers also need stores for keeping materials. These materials will be used by the mechanics to carry out maintenance activities. For example, a mechanical workshop should hold stock of spare parts like oil, bolt, screw, etc.
This is the actual handling of the items or materials received into eld in and issued from the store. It involves the process of receiving aterials in an organization and provides the required space to ensure oper maintenance of materials in an organization. Effective store keeping sures that goods are not only protected physically but are easil entified, secured and accessible.
The store department is a service department which is responsible for proper storage, protection and issue of all kinds of materials. A store may be a section or department in an organization. The task of store keeping relates to safe custody and stocking of materials, their receipts. issues, and accounting with the objective of efficiently and economically providing the right materials, at the right time and in the right condition to all user departments.
Components of store keeping
1. Warehousing: It is the act or process of storing of large quantities of goods so that they can be used up or sold at a later date: Warehouse is concerned with the storage of goods until they are needed. Goods that are stored in the warehouse include raw materials, finished goods and spare parts.
2. Requisitioning: It is the process involving writing a formal reques on a preprinted form to notify the store of items that are required and whic should be ordered. This is the process in which written document allows person or organization to obtain goods. For example, requisition fo replacement of spare parts.
3. Inventory and inventory control: These are stock of good held E business organization for sale or used in production. Inventory consists spare parts, raw materials, finished goods and components. Invente control is the process of recording and monitoring the level of stock other to reduce the total cost invested on it.
Objectives of store keeping
1. Maintenance of records of materials: Store keeping also ensures the maintenance of systematic records of materials in the store.
2. Protection of materials from losses: The store work towards protecting materials from damages, losses and pilfering.
3. To minimize storage cost: It aimed at reducing to the barest minimum the cost of carrying stock referred to as storage cost.
4. Receiving and issuing of materials: The store aims at ensu smooth receiving, keeping and issuing of materials from the store.
5. To prevent over or under stocking: No business can op efficiently if there is stock out because it will lead to stoppag production. On the other hand, excessive stock will lead to loss of mon a lot will be spent on carrying cost.
Characteristics of efficient system of store keeping
The essential features of a good store keeping are explained below.
1. Proper documentation: In an efficient store. there is prompt and
proper recording of items in and out of the store. There is an up to date store record. 2. Protection of store items: Store materials are protected against
losses such as fire, theft, evaporation and deterioration. Efficient store systems also preserve materials from rain, sun, insect and humidity.
3. Good and proper arrangement: The store items are well arranged to ensure that there is immediate location of materials. There will be no difficulty in locating items and there is easy movement of men and materials in the store.
4. Good coding system: This will ensure full identification of store items at all times. Store items should be properly coded and classified to ensure easy location and retrieval of materials.
5. Efficient procedures for receiving items: In an efficient store system, there are procedures put in place to make for proper and efficient receipts and storage of goods.
6. Ensures perpetual inventory: This is the ability of the store management to give details of store items on request.
7. Observance of stock level: The stock level is properly monitored so as to avoid stock out. Observance of the stock level will prevent the organization from running out of stock or having excess. The physical stock is always compared with perpetual inventory record
8. Economic use of storage space: There is economic utilization of storage space. The items should be properly arranged so as to ensure -optimum use of storage space. 9. Judicious use of store equipment: The equipments used in the store such as shelves, bins, pallets and ladders should be put to judicious use.
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