Monday, 14 December 2020

Store procedure & Practice

Introduction to Store Procedure & Practice:

After the successful completion of the purchasing procedure, the next most critical phase in effective materials management is storekeeping and managing daily store procedures.

A storehouse is a dedicated building or area provided for preserving raw materials, operating stores, and finished goods safely. The professional in charge of managing these physical resources is known as the storekeeper or stores manager. How a stores department is structured largely depends on the factory's operational size, physical layout, the specific nature of stored materials, and the frequency of purchase and issue cycles.

According to Alford and Beatty, “storekeeping is that aspect of material control concerned with the physical storage of goods.” In practical terms, store procedure and practice refer to the structured art and technique of preserving raw materials, work-in-progress, and finished products within the warehouse.

Types of Store Systems and Procedures:

Depending on organizational needs, storekeeping practices are broadly categorized into two operational systems: Centralised Storage and Decentralised Storage.

1. Centralised Storekeeping:
Centralised storage means operating a single main store for the entire organization. This practice ensures better physical control, optimal utilization of space, reduced staffing needs, and cost savings by allowing storage experts to handle inventory. It also facilitates continuous stock checking and auditing.

Drawbacks: However, it comes with higher material-handling costs, potential delays in issuing stock to distant departments, and increased vulnerability to major risk factors like fire or accidents due to concentrated storage.

2. Decentralised Storekeeping:
Decentralised storage involves setting up independent mini-stores directly attached to various functional departments. This practice minimizes material handling time and transport costs for bulky items while preventing overcrowding in a central warehouse.

Drawbacks: The key limitations include difficulty in maintaining a uniform storage policy across the firm, requirement of extra staff, and higher administrative overheads as specialized experts may not be assigned to every sub-store.

Conclusion

In conclusion, adopting an efficient store procedure and practice forms the operational backbone of materials management. Whether an organization chooses a centralized or decentralized store layout, implementing proper storage workflows ensures seamless inventory protection, minimizes handling risks, and supports uninterrupted manufacturing processes.

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