Store Keeping, Definition, Objectives and Functions

Definition Of Store Keeping

In the process of material control after purchasing and receiving material, the next step is to store materials and supplies in proper places until they are needed which is also known as storekeeping. It is the most critical part of material control.

Store keeping is the procedure of storing purchased items, raw materials, finished products, and supplies in a safe and intact position until they are needed. These items are kept in a storeroom or warehouse under the supervision of a storekeeper who holds full responsibility for receiving and distributing stored materials. The storekeeper matched the inward and outward supplies of materials to reduce losses from damage, wastage and negligence.

Objectives Of Store keeping

1. To control overstocking and understocking of material
2. To effectively receive, manage and issue materials
3. To minimize storage and handling costs
4. To maintain and check quality and quantity as standards
5. To use available storage space effectively
6. To systematically record and organize data that instantly provide up-to-date information about the stored item
7. Protect goods from theft, loss and natural disaster
8. To supply material timely without delay to various production and sales departments.
9. To locate identify inventories without delay

Functions Of store Keeping

Types of Store

There are many different types of stores, but the following are the ones that are commonly used by manufacturing companies. 

Stores can be classified into three types:

1. Centralized Stores
2. Decentralized Stores 
3. Centralized Stores With Sub-stores

Centralized Stores:

 In a centralized store, materials are received and distributed to a company’s departments, divisions, sub-stores, and production floors. This store works as a central point for production and sales.

A store like this is the only one in the company that receives and distributes materials to all departments and sub-stores. There is a single store that stores and issues materials for all departments and branches. 

Decentralized Stores:

The term “decentralized store” refers to a store where materials are both received and issued from the same location. In order to minimize the carrying costs of inventory and avoid production disruption, large groups of the company maintain decentralized stores closer to their production centres. Each production department purchases and handles raw materials separately. A decentralised store is ideal where there are large movements of materials and production.

Centralized Store with Sub-Stores:

This type of store uses both centralized and decentralized store systems, a combination of centralized and decentralized stores. In this store system, sub-stores are set up in different departments in accordance with the needs of the company. In situations where the central store is far away from the production area, to reduce transportation expenses, delays in production sub-stores are maintained at each department. Usually, operations in these sub-stores are controlled and managed by the central store. Sub-stores receive a fixed quantity of materials for each production period from the central store and maintain a fixed level of stock for production.

Store keeper’s Duties

A storekeeper also known as a store manager or store supervisor is someone who keeps records of sales, manages the inventory, manages the layout of a store, supervises the staff and oversees the store.

A storekeeper is responsible for the day-to-day operation of the store. In his role as store manager, he is responsible for controlling the store. The storekeeper must have some technical knowledge and experience working in a store.

Staff and other officials in the store assist the storekeeper to carry out the day-to-day operations smoothly. The storekeeper is also responsible for guiding and educating the personnel working under him about their duties.

Storekeeper’s main duties include :

1. To issue requisitions to the purchasing department maintaining the stock level
2. To Receive material from suppliers and the production department
3. To ensure that the materials are of high quality, sufficient quantity, meet all specifications, are in good condition, etc.
4. To sort and store materials according to their categories in different racks and bins.
5. To preserve the materials by taking appropriate measures.
6. To issue day-to-day, Weekly, and Monthly work reports to the higher authority.
7. Issue material as per the orders.
8. To Safeguard the store, materials, and men working in it and prevent unauthorized access.
9. To maintain purchase invoices, and issue receipts and bills.
10. To ensure the accuracy of stock at all times by performing periodic stock verifications.
11. To dispose of waste and scrap material according to the procedure.

Location Of Store

Here, the location refers to the area where the store is situated. The production department must carefully consider many aspects when choosing the store’s location.

Stores should be located as close as possible to the Receiving Department so they are convenient and safe. Moreover, it must be accessible from all parts of the factory and free from fire and theft risks.

Factors to be considered when selecting the location of stores :

1. It should be located in a central and safe place.
2. Ideally, it should be located near the production department.
3. The space must be large enough to store raw and finished materials.
4. All other departments should be able to access it easily.
5. It is critical that stores are located in a way that allows expansion in the future
6. The store should be able to provide a smooth and regular supply of materials from the location and has a hassle-free transport facility.

Store layout

In a store, the layout refers to the arrangement of storage facilities or the placement of materials inside the store.

An effective store layout helps the proper utilization of available space. Improve store appearance. An organized store layout helps receive and issue material more easily minimizing wastage, damage and delay in material handling.

Optimizing store layout and effectively using storage space reduce storage costs. It depends on the nature of the business as well as the material.

Material storage should be separated according to the viewpoints of space economy, supervision, minimal wastage, and convenience. Bins, racks, and shelves are commonly used items to store and organized materials.

Frequently Asked Questions