m
m

THE LATEST PRACTICES &

THE EMERGING TRENDS

m
 m 
   
 |   mm


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.

m
 m 
   
 "
 mm  

m
m

•. Functional ± Chemicals, Tools, Raw Materials, etc

2. Physical ± Depending on size and location like Central Stores, Sub
Stores, Transit Stores, Site Stores, etc
V
V
 V


•. Raw Material Store
2. Production Store
3. General Store
4. Tools Store
5. Salvage Store
6. Packing Store
7. Spare Parts Store
8. Receipt Store

m
 m 
   
V
V
 V

  

0
 

    

   

   

   


 

 V  

  

  ! 

" #   

0  
 #

  
 

m
 m 
   
 V
V

#V




 Central Store
 Departmental Store
 Group Store
 Site Store
 Transit Store

m
 m 
   
 m
m
m

[ CLOSED TYPE
[ OPEN TYPE
[ RANDOM ACCESS STORES
[ ASRS
[ CONTRACTOR OPERATED STORES (C&F or 3PL)
[ CUSTOMS BONDED WAREHOUSE

m
 m 
   
 




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.
m
 m 
   
   !$%   
 
D 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.

D Custody and issue of stores to the consuming departments based on

the requisitions placed by the indenters.

D Classification of items based on their value, usage and source.

D Adopting scientific methods of storage, to minimize losses due to

deterioration, obsolescence, breakage, leakage, thefts etc.

D Proper recording of transactions and periodical review of balances

under different suspense heads for keeping up to date stores accounts.

m
 m 
   
 |    m  m
m

· 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

m
 m 
   
 |    m  m
m

· Classification of items stores (A,B,C Analysis)

· Scrap Accounting and disposal
· Stores Safety and Security
· Storage Equipment and Materials Handling
· Procedure Manuals

m
 m 
   
  m  m m
m

 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

m
 m 
   
 
  
m

X PERPETUAL INVENTORY
X PERIODIC STOCK TAKING

m
 m 
   
    

PRINCIPAL OBJECTIVES
•. 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.
 
 V


 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

m
 m 
   
 r
V




m
 m 
   
 m
 

m
 m 
   
 " m
  m

m
 m 
   
 m

m
 m 
   
 % 
V % 

m
 m 
   
  


Back Saver Lifts Space Saver Lifts Pallet Level Loader

Elevating Helper
m
 m 
   
 & 
   





 
  
% 
 
  
% 



m
 m 
   
  

m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m 
   
m
 m