Store Keeping

'Store keeping' refers to the safe custody of all items of raw materials, supplies, finished parts, purchased parts etc., in the store-room for which the store-keeper acts as a trustee. It is said to be the process of receiving and distributing stores or supplies.
In short, store keeping refers to the art of preserving raw materials, work-in-progress and finished parts in the stores in the best possible manner. Generally, in small concerns, no importance is given to stores department. But it should be remembered that material pilferage, deterioration of materials and careless handling of materials lead to reduced profits or even losses. As such, it is necessary to maintain a well-equipped stores department to ensure maximum efficiency. Spriegel and Lansburgh have rightly remarked— “Poor control of materials is frequently accompanied by poor store-room administration in a way that may easily throw out of balance any operation programmes which have been adopted.”

Objectives Of Store Keeping :-

An efficient system of store keeping has the following objects:

1. To ensure uninterrupted supply of materials and stores without delay to various production and service departments of the organization.
2. To prevent over-stocking and under-stocking of materials.
3. To check in all materials as to quality and quantity.
4. To minimize storage cost.
5. To ensure proper and continuous control over materials.
6. To ensure most effective utilization of available storage space and workers engaged in the process of store-keeping.
7. To protect materials from loss and wastage due to defective storage.
8. To identify and locate materials in the store-rooms without delay.
9. To protect and safeguard material items against pilferage, theft and fire etc.
10. To develop such a system so that fullest information about store items is available in the stores at every time.

Factors determining the location of stores:

The main factors which determine the location of store in a manufacturing concern may be given as follows:

1. Minimization of Material Handling Efforts: Minimisation of material handling efforts implies location of raw material store near the production shops and location of finished goods store and packing materials store near the assembly shop. The stores should be easily accessible by means of transport.
2. Nature of the Materials: The nature of the materials to be stored also affects the location of the store. Material that is not damaged by weather can be stored out of doors in a shed. But materials such as cement, plaster, etc., must not only be protected from the weather but must also be stored in a dry place.
3. Quantity, Weight, etc., of the Materials: The quantity of each of the goods to be stored must be taken into account for determining the location. When the quantities are known, adequate provision may be made for immediate and future storage needs.
4. Flow of Materials: Location of store should be convenient which allows for steady and regular flow of store items without any obstruction.
5. Free from Risk of Loss: Store must be set up at a safe place which is free from the risk of loss due to fire, theft, moisture, etc.
6. Flexibility: The location of store must be such which provides for its future expansion.

Layout of stores:

‘Layout’ of stores refers to the physical arrangement of storage facilities or the internal arrangement or placement of materials inside the stores. Layout of stores aims at effective utilization of space available for storage of materials, making the receipt and issue of stores convenient, giving a better appearance to the store and reducing the chances of damage, wastage, pilferage and accidents.
It also aims at reducing the operating cost of storage. The layout of stores should be determined according to the class and quantity of materials to be stored and the general nature of the business. There should be proper and separate arrangement for different items of materials from the viewpoint of the economy in space, effective supervision, minimum of wastage and convenience in issue. The materials should be kept in bins, racks, shelves, drawers, drums, packages and containers.

Factors to be considered for determining stores layout:

1. Similarity: Items of similar nature should be stored at one place for the sake of easy identification and convenient issue.
2. Popularity: The turnover of each item of stores should be considered so that fast moving items should be stored near the point of issue/usage.
3. Size of Item: Items of store which are large or bulky in nature should be stored near the point of use.
4. Nature of Materials: Nature of materials to be stored is also important in determining the layout of store. Hazardous, sensitive and perishable goods should be stored separately at safe places.
5. Physical Movement of Materials: The principle of ‘first-in-first-out’ should be strictly adhered to in the matter of physical movement of the materials.
6. Physical Facilities: Efficient layout should also consider the various physical facilities such as lighting arrangement, ventilation, wall paints, size of platforms, availability of cranes and handling equipment.