CHAPTER ONE

STORES ADMINISTRATION
PRINCIPLES OF STORES OR WAREHOUSE
What is a store?
The store can be defined as “an area in an
organisation where all kinds of materials needed for
production, distribution, maintenance, packaging,
etc. are received, stored and issued”.
 That is to say, the basic responsibilities of
stores is where materials are stored or in
custody and controlled against deterioration till
they are needed as parts, supplies, etc.
Warehouse in other words, is usually a huge
building in which goods, raw materials or
commodities are stored. People do not usually
shop at warehouse.
• A store or warehouse is a temporal place for
holding physical stocks or supplies awaiting issue
or transport to customers.
• Warehousing or storing plays an important part in
the Logistics system of any organization. The major
functions of warehousing are movement and
storage of materials and information transfer. It is
therefore very necessary to select the type of
stores or warehouse for the storage of items.
• The reason for carrying operating stocks is that the
material is needed. And it should be stored and
controlled by the best methods, whereby items are
stored in such a way that any item or material in the
store can be located quickly and easily when it is
required.
• The stores should be considered as temporary location
as materials needed for operational purposes. Stores
should be planned, organized and operated in such a
way that the period in which stock items are kept is as
short as possible consistent with economic operation.
The stores have the responsibility of receiving items
and materials, including the inspection,
custody/kept and distribution of very large sums of
money in the form of stocks. Stores also help in the
determination of appropriate quantities of
materials to be held in order that operational
needs may be met as economic manner as
possible. Store is found everywhere be it a hotel,
restaurant, home, shop or industry set-up or
organisation.
 Types of Materials Kept/Held at the Store

•Raw materials
•Component parts
•Packaging
•Spare parts
•Tools
•Work-in-progress
•Finished stock
•Maintenance materials etc.
There are however different types of
stores systems which need to be
discussed. The most common types of
stores systems are closed, open,
stores building and stockyards.
 Types of Stores
1 Closed System;
In this type of stores, the structure is
constructed in such a way that, there is
provision of closed vent and doors so that
the securities of the items in stock are
secured. In this system, items once stored
are kept under key and lock.
 Advantages of Closed System
•Items stored are protected.
•Minimum movement of items after
close of work.
 Disadvantages of Closed System
•It is expensive to construct
•Poor lighting
  
2. Open System

The open system of such a facility is just

the opposite of the closed. In this type of
system, the construction is similar to the
closed with only difference being that,
the openings are not gated.
 Advantages Open system
•it is not expensive to construct
•there is maximum ventilation and
lighting
 Disadvantages Open system

•Items need to be moved in and out

daily.

•Items cannot be stored overnight

due to theft.
 Stores Building
• This is the physical structure located at a particular
place where materials are received, kept and issued.
Stores building are the key to any stores system. It is the
basis of all store operations and activities within the
organisation.

The size and scope of stores building will differ between

organizations according to the following factors;
•The size and complexity of the operation
involved
•The Resource and capital available for building
and construction
•The siting of existing operations
•The Future plans and expectations of the
organization.
Because of the importance to the stores
to an organization, any major decisions
regarding the stores building must be
very carefully and professionally
considered by both stores and senior
management.
 Functions of Stores Buildings
The functions of stores building vary according to
the need of individual organizations. The following
are some of the most common functions:
• A large central store will act as the receiving,
collection and distribution point for all stocks.
• Stores building will provide storage for all
materials including work in progress, finished
stock and raw materials.
•The stores building often contain the
administrative and management resources
(i.e. offices, issue counters, delivery bays, etc.)
within its area.
•Materials handling equipment that are often
used are stored within the stores building.
• One of the functions of stores is to ensure a
balance flow of materials, components, tools,
equipment and other commodity to meet planned
operations. Stores ensure correct stocking level.
• Provision of suitable storage condition to protect
materials from damage and deterioration.
• Provision of secured stored to avoid theft, fire
outbreak, fraud etc.
 TYPES OF STORE BUILDING
Single-Storey Stores Buildings
• This is a store built having only one shop floor
level, without stairs or upper floors. These are
probably the most common and are very widely
employed. However, many single-storey stores use
mezzanines (an intermediate floor just above the
ground floor) to provide a degree of upper
storage. Single-storey buildings have several basic
advantages.
 Advantages of Single-Storey Buildings

• Relatively cheap to construct;-They are relatively

cheap to construct and maintain owing to the
simple design and the lack of upper floors.
• Ease of movement of materials;-Having
everything on one level improves the logistics of
materials handling and the natural flow of the
materials through the store.
• Easy installation of facilities;- Ventilation and the
other basic services (electricity, water, gas, etc.)
are easier to install and operate.
• Allows heavy weight materials to be stored;-The
use of the ground floor only enables great weights
to be stored, without the problems associated
with multi-storey building and the weight
limitations on upper floors.
 Disadvantages of Single-Storey Building
Inadequate space;-The basic disadvantages
associated with single-storey stores buildings
are that of space. Many organizations operate
within a confined area and do not have the
ability or the resource to purchase large plots
of land for such a development.
 Multi-Storey Stores Buildings
This is a store built on series of shop floor levels
with stairs or upper floors.
These are used mainly in areas of high density
population where land and resources are not
available, or in situations where the organization
itself is based on a multi-storey site and the
individual floors are served by different sections of
the store.
 Advantages of Multi-Storey Stores
Building
Flexibility in the use of floors space;-The
multi-floor environment enables great
flexibility for alternative use of storage
space (e.g. offices, production facilities)
should the need arise.
Security of stocks;-Separation of areas of
stock by a system of floors can be an aid
to security and for precautions in that an
outbreak of fire could be contained on
one level without damaging the rest of
the stock.
Heavy loads storage;-Modern building
techniques allow for quite heavy loads to
be handled on the upper floors.
Suitable for storing small units of
heavy value stocks;-Multi-storey
building is well suited to handling
small units of highly value (e.g.
electronic components, jewelry etc.)
stocks in an inner city area.
 Disadvantages of Multi-Storey Store
Building
•Heavy capital outlay;- on construction
and subsequent running of the biding
•Difficulty of materials movement
•Difficulty on the installation of facilities
 Purpose-Built Store Building
The term ‘purpose-built’ relates to the
situation where the organization involved has
designed and constructed a store’s building
bearing its own individual needs and
operational requirement. Purpose-built stores
are usually associated with the large
organization which achieves their resource to
embark on such a project.
However, smaller organization can acquire a
purpose-built store on the open market, provided it
has been designed for basically the same operation
as the purchaser’s. For example an organization
storing large amount of heavy palletized materials
would require a large open-plan store, whereas the
holder of numerous small manufactured units may
need a storage area of several storey and
numerous closed and open shelves.
Advantages of Purpose-Built Stores Installations
The following are some of the operational
Advantages of purpose-built stores:
•Design to meet the needs of organisation;-
Stores management has the opportunity to
ensure that the most efficient layout design is
produced, in relation to materials handling
and storage.
Incorporation of technology in the stores
construction;-The latest technique, innovations
and stores developments can be incorporated
in the basic design requirements. For example,
the use of computerized materials handling
system requires the laying down of guide
tracks. This kind of work is best carried out
during actual construction:
Future demand for space catered for;-
The building will provide the organization
with exactly what its needs dictate. There
should be no wasted space, and future
requirement should be allowed for, thus
reducing the problems of expansion in
later years.
 Disadvantages of Purpose-Built Stores
Installations
These include the following:
•Expensive;- Designing and constructing a
purpose-built store involves a great deal of
time and money.
•Conflicting interest;- These can arise between
stores management and other departments
(e.g. finance and production).
Misjudgment;- Any misjudgment about
the real needs of the organization could
result in great waste of resources.
 Converted Stores Building and Installation
As organizations develop and expand or grow, the
need for storage space and handling facilities
expand in proportion. Therefore, many
organizations find themselves having to convert
building from other use to that of stores buildings.
These buildings can range from old factories to
large residential houses, depending on the size of
the operation and the property available.
 Advantages of Converted Stores Buildings
These include the following:
• They are relatively cheap to acquire, either by
outright purchase, or by lease if the organization
lacks the capital to buy.
• Flexibility of changing locations;-The organization
has the option of moving its stock to another
location in the future should its demands change.
Careful planning and layout of converted
building can produce very useful storage
facilities.
 Disadvantages of Converted Stores

Disadvantages of using building not primarily

designed for the purpose of storage:
• Environmental conditions needed to store
materials may not be correct, so expensive
equipment may need to be installed (e.g. for
frozen food, damp-free conditions-ventilation,
security systems etc.)
•The materials handling and storage may
not be suitable for use within the
converted area (e.g. level floors are
needed for many electric trucks) and the
problem of access via doors and
entrances is often a major problem in
relation to converted buildings.
•The needs of the organization will
obviously not have been taken into
consideration at the original design
stage.
•Further expansion may be restricted by
factors outside the control of the
organization, e.g. local environment
planning permission.
 STOCKYARDS
Definition of stockyard
Stockyards are usually open storage areas
used for the storing of various non-
perishable goods, that is, materials that
will not deteriorate or perish when
exposed to the elements of the weather
over long periods of time.
 Types of Materials Suitable for Stockyard
Storage
Because of the exposed nature of a stockyard,
it obviously provides excellent storage for
materials that are destined to spend their
working lives in open or exposed conditions
(e.g. concrete paving stones, sand, shingle, etc.)
however, it also provides storage for other
materials as follows:
•Stoneware, e.g. concrete slabs, paving
stones, bricks, construction materials;
•Heavy iron and steel casting, e.g. drains,
piping, bridge units, lamp post;
•Heavy duty electrical cable, e.g. of
the type used to carry high voltage
electricity in underground
conditions;
•Outdoor machinery, e.g. tractors,
cars, Lorries, drilling equipment,
cranes, etc.
•Scrap and waste materials, e.g. fillings,
turnings, obsolescent stocks, chemical
waste and by-product;
•Coal, cokes and other fuels, e.g. stored in
drums.
 Location and Construction of Stockyard
Location
Stockyards are usually set aside from the rest of the
stores installations and connected by a link road. In some
cases stockyards are located some distance from the
main store and may be part of the organization’s
distribution system. Acting as a constant source of stock
to outlets within the area. Smaller unit stores may also
have a small stockyard within their boundaries.
 Factors influence location of stockyard
The decisions relating to the location of stockyards
have to be taken by senior management, with
specialist advice from stores management.

There are a number of factors that will influence

the location decision.
• Cost of land in the immediate area or surrounding
districts. This will affect whether or not the
stockyard is set up close to the present store or, in
the case of high local land prices, at a site some
distance away.
• Space available within the precincts/district of
the organization itself. If space is not available and
cannot be purchased or developed, then the yard
will have to be set up some distance away.
• Transport connections between the main store
and the stockyard. These have to be adequate for
the amount of stock movement involved.
Depending on the requirements of the
organization or, indeed, its suppliers, a stockyard
may need to be near a major transport link.
• The size of construction of the stockyards. The
larger the stockyard the more likely it is to be set
out of the inner city area.
•The type and character of the materials
to be stored. For example, highly
dangerous material would have to be
stored away from the rest of the
organization’s installation and would also
have to be away from center of
population in case of accidents.
 Construction of stockyards
One of the main advantages of a stockyard is low
expenditure and running cost in return for a large
storage capacity. One of the reasons for this cost is
that construction is so inexpensive. A stockyard
only requires a sound base, secured fencing and
good strong gates, unlike complex stores building
which require foundations, walls, roofing,
ventilation, heating, etc.
 Construction Layout of Stockyard
To enable the stockyard to operate
efficiently and effectively, a logical and
workable yard design must be designed
and implemented.
 Factors to consider when Constructing
Stockyard
1. Frequency of usage;-materials to be stored must
be classified in relation to the frequency of
usage. The materials are usually grouped into
three logical sections-
• High usage rate
• Meddle usage rate
• Low usage rate
The principle is that, materials that are constantly
being used and delivered to the stockyard should
be placed near the entrance/exit thus reducing
handling times of these high usage materials and
minimizing traveling time. The logic is followed
through in relation to the other categories, i.e.,
medium and slow moving materials being
progressively further from the point of entry. (See
fig. below);
2. Allocation of gangways
3. Entrance and exits
4. Control center (gatehouse)
 Methods of Stockyard Construction

There are basically four (4) methods of

constructing the base of a stockyard. The
advantages and disadvantages of each are
discussed below. Which method is used
well is determined by both the cost of
construction and the type of material that
can be stored.
 1.Simple fencing-off waste land
This is the cheapest form of stockyard. It
does not need any outlay of base
construction. It limits the yard to the
storage of only scrap or obsolete
materials and will also restrict the pallet
loads, due to uneven surface of the
ground.
 Advantages Simple fencing-off waste land
1.Very cheap to construct
2.No maintenance required
3.Can be easily removed in the future and set
up in another location.
 Disadvantages Simple fencing-off waste
land
1. Very limited in the type of materials that can be
stored
2. Equipment will quickly become less value in
adverse weather conditions or become
deteriorated as it left to the mercy of the
weather
3. Difficult to manage and locate stock
 Gravel Surfaces
These are very popular with many
organizations especially for storing low value
stock in large quantities when limited resources
are available. The gravel surface will support a
certain amount of weight.
 Advantages Gravel Surfaces

•Still quite cheap to lay down

•Can be relocated reasonably easily
 Disadvantages Gravel Surfaces
• Cannot still support heavily laden equipment and
pallets
• The area can tend to become waterlogged in bad
weather conditions
 Tarmac surface

• This is a thick black mixture of tar and very small stones

sizes, used especially for making the surfaces of roads,
pavements, stockyards etc.

• This is by far the most popular form employed for

stockyards. The tarmac surface is very strong and will
support quite heavy loads in all weather conditions.
Many firms employ tarmac as a permanent stockyard
base.
 Advantages of Tarmac Surface
•Excellent storage
•Easily laid out and marked for a location
system
•Easily maintained and repaired.
 Disadvantages Tarmac surface
•Quite expensive when compared with the
above fencing and gravel methods
•Subject to damage, especially in very hot
weather, with heavy loads causing
indentations and holes in the surface.
 Concrete Surface
This is by far the most stable and strong of all
the methods described. It is able to deal with
the heaviest loads and will be operable
regardless of the weather conditions. Concrete
is often used where very heavy loads are to be
stored and heavy materials-handling
equipment will be employed (e.g. heavy cables,
construction equipment, plant).
 Advantages of Concrete Surface
•Able to cope with heavy materials in terms of
weight placement
•Usable all the year round
 Disadvantages Concrete Surface
•Very expensive compared with the other
methods listed above
•A very permanent structure that would be
most expesnsive to pull up and rebuild.