stores management
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STORES MANAGEMENT THE LATEST PRACTICES & THE EMERGING TRENDS Sep 2010 1 Stores Management
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Stores Management 1
STORES MANAGEMENT
THE LATEST PRACTICES &
THE EMERGING TRENDS
Sep 2010
Stores Management 2
WHAT IS A STORE?
Stores, Storehouse, or warehouse – All of them refer to a building or room or place where materials are kept.
The true function of a store is not to store a product, but to facilitate the availability of the material as and when required.
Depending on the organization, it will have different stores like Raw Material Stores, Processed or Semi-Finished Materials Stores, Finished Goods Stores, Yard Stores and so on.
In case of Food and pharmaceutical industries it can be Cold or Dehumidified.
In case of companies who are importing the goods, they can choose to have Private or Public bonded warehouse.
Sep 2010
Stores Management 3
BROAD CLASSIFICATION OF STORES
1. Functional – Chemicals, Tools, Raw Materials, etc
2. Physical – Depending on size and location like Central Stores, Sub Stores, Transit Stores, Site Stores, etc
CLASSIFICATION OF FUNCTIONAL STORES:
3. Raw Material Store
4. Production Store
5. General Store
6. Tools Store
7. Salvage Store
8. Packing Store
9. Spare Parts Store
10. Receipt Store
Sep 2010
Stores Management 4
9. Quarantine Store
10. Finished Goods Store
11. Work-in-progress Store
12. Stationary Store
13. Bonded Store
14. Refrigerated Store
15. Chilled Space Store
16. Freeze Space Store
17. Flammable Materials Store
18. Dehumidified Store
19. Transit Sheds
20. Dry Tanks
21. Shed Storage
22. Open Yard
Sep 2010
CLASSIFICATION OF FUNCTIONAL STORES ….contd
Stores Management 5
• Central Store
• Departmental Store
• Group Store
• Site Store
• Transit Store
Sep 2010
CLASSIFICATION BASED ON PHYSICAL NATURE
Stores Management 6
TYPES OF STORES
CLOSED TYPE
OPEN TYPE
RANDOM ACCESS STORES
ASRS
CONTRACTOR OPERATED STORES (C&F or 3PL)
CUSTOMS BONDED WAREHOUSE
Sep 2010
Stores Management 7
WHAT IS STORES MANAGEMENT?Stores Management is an integral part of the overall function of Materials Management.
The task of Stores Management relates to
safe custody and preservation of the materials stocked,
to their receipts,
issue and accounting.
Objective is to efficiently and economically provide the right materials at the time when it is required and in the condition in which it is required.
The company doesn’t make money by storing a product, unless of course, the price of the product escalates with passage of time, such as with wine and antiques. Hence, maximum we store, maximum we loose.
Sep 2010
Stores Management 8
Standardization of stock items by unified coding for easy identification of materials, components and parts, efficient assessment of the stock needs and better utilization of the available stock.
Custody and issue of stores to the consuming departments based on the requisitions placed by the indenters.
Classification of items based on their value, usage and source.
Adopting scientific methods of storage, to minimize losses due to deterioration, obsolescence, breakage, leakage, thefts etc.
Proper recording of transactions and periodical review of balances under different suspense heads for keeping up to date stores accounts.
Sep 2010
The main objectives and functions of Stores Management:
Stores Management 9
WHAT ACTIVITIES ARE CARRIED IN STORES
Identification of all Materials stored
Receipt and inspection
Storage and preservation
Issue and dispatches (Material Handling)
Records and recording system
Materials Accounting
Approaches to Provision of Materials
Stock Control Techniques (Inventory Management)
Stock Checking and Stock Taking Methods
Sep 2010
Stores Management 10
WHAT ACTIVITIES ARE CARRIED IN STORES
Classification of items stores (A,B,C Analysis)
Scrap Accounting and disposal
Stores Safety and Security
Storage Equipment and Materials Handling
Procedure Manuals
Sep 2010
Stores Management 11
LATEST PRACTICES IN STORES MANAGEMENT
• Bar Codes used for identification and for accounting
• Standardization of items stored (Variety reduction & Fewest Locations)
• Automated Material Handling System
• Automated storage equipments
• Use of vertical space
• ERP / SAP etc., aimed at accuracy of stocks held
• Paperless Stores Management
Sep 2010
Stores Management 12
INVENTORY TAKING METHODS
PERPETUAL INVENTORY
PERIODIC STOCK TAKING
Sep 2010
PERPETUAL INVENTORY PRINCIPAL OBJECTIVES
1. Carrying out continuous verification of stocks and related items at Company and Outside Locations, with a view to detecting and reporting any quantity variations.
2. Reviewing factors responsible for stock discrepancies and ensure controls for custody and handling of stocks including -
(a) Godown physical handling,
(b) Security arrangements,
(c) Receipts
(d) Storage
(e) Dispatch Procedures
(f ) Stock Record Maintenance at Divisions/Godowns,
3. Recommending appropriate procedural administrative improvements
4. Following up from time to time and ascertaining whether necessary corrective actions arising out of perpetual inventory findings have been taken by Divisions/Admn.
5. Exercising checks on those responsible for custody and handling of stocks.
Stores Management 14
THE EMERGING TECHNIQUES
• With the concept of JIT – Stores operations can be eliminated/ reduced
• Outsourcing of warehousing (Generally finished goods or spare parts meant for sale) activities
• Customized warehouses (For value additions like customized packaging, addition / removal of specific components to meet the minor product variation required by customers
• High tech movement tracking system
Sep 2010
Stores Management 15
VERTICAL STORAGE SYSTEM
Sep 2010
Stores Management 16
USE OF MAZANINE
Sep 2010
Stores Management 17
BINS & CONTAINERS
Sep 2010
Stores Management 18
RACKS
Sep 2010
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Gravity Wheel Conveyor
Sep 2010
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Back Saver Lifts Space Saver Lifts Pallet Level Loader
Elevating Helper
LIFTING EQUIPMENTS
Sep 2010 Stores Management
21Hoist
Lift Trucks Reach Trucks Side Lifting TrucksElectric Powered Rider Straddled
Trucks
Over Picker Trucks
Walk Rider Pallet Trucks
Gantry cranes
Stores Management 22
Mini Automated Storage Retrieval System (ASR)
Sep 2010
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