Stores

Management
OBJECTIVES &
FUNCTIONS

Shishadri Shekhar Dutta

CALCUTTA UNIVERSITY
MBA In Finance
0Definition:
0 Stores Management is concerned with
ensuring that all the activities involved
in storekeeping and stock control are
carried out efficiently and economically
by those employed in the store.
0 In many cases it will also encompass the
recruitment, selection, induction and
the training of stores personnel and
much more.
 Objectives

• To ensure availability of materials for

uninterrupted operation
• To take safe custody of materials
• To preserve qualitative aspects of
materials held in stores
• To contribute to cost effectiveness in
operation
 Functions of stores
• Stock Policy
• Stock Records
• Control and Supervision
• Receipt of Stores
• Issue of stores
• Stock Checks
• Disposal of Stores
• Miscellaneous
Stock Policy
• To establish a stock policy
• Make the stock policy clearly known to all staff concerned
0 The types of items that will be stocked
0 The factors that determine the stock levels
• The inventory system to be adopted

0 Stock Records
0 Maintain a complete and proper record of the items in stock
with the following particulars
0 reference and description of each item
0 quantity and location in the store
0 expiration date (if any) of each item
0 date and quantity of each transaction
0 current stock balance for all items
0Control and Supervision
0 Maintain adequate division of labour between :
0 issue of goods
0 receipt of goods
0 updating of store inventory record
0 updating of accounting records

0Receipt of Stores
0 Put in place adequate physical safeguards in the goods
receipt procedure
0 properly document and account for each goods receipt
voucher
0 establish policies and procedures for handling exceptional
matters of goods receipt
0 establish written procedures for lodging claims for supply
and delivery problems
0Issue of stores
0 Properly document and account for all delivery
vouchers
0 issue store items on a "first in - first out" basis
0 properly control the issue of goods eg. check
the voucher authorisations against a record of
specimen authorised signatures

0Stock Checks
0 Conduct regular and surprise stock checks
0 set appropriate limits of authority for writing off any loss
or deficiency of stores
0Disposal of Stores
0 clearly define the items which are to be discarded
0 establish proper procedures for disposing of these
items

0Miscellaneous
0 regularly rotate staff members in more sensitive
jobs (for example, stores-receiving staff)
0 regularly review the physical security of the store
0 undertake a corruption risk analysis of stores-
related computer systems
0 conduct security checks of vehicles entering or
leaving the store area