INTRODUCTION TO STOREKEEPING

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THE SCOPE, PURPOSE, OBJECTIVE AND RESPONSIBILITIES OF STORES
FUNCTION
INTRODUCTION
Store is a department or function associated with the holding and issuance of inventory
items.
Is a building or room where by materials are kept safe for future use.
Stores: Are stocks or supplies reserved for future use such as food, clothing or arms etc.
Stores include all the materials, parts, suppliers, expenses and in process or finished
products recorded on the books by an organization and kept in its warehouses or plant for
some period of time
The stocks/stores/inventories that any organization or institution keep as assets for the
organization and that should me managed and administered effectively can be in the
following forms;
i. Raw materials; these are materials which are bought and kept for manufacturing
process so as to produce other products.
The purpose of keeping raw materials is to facilitate a continuous production and
operation of the organization
ii. Work in progress. These are partially transformed materials. They still need further
process of transformation in the production process. They are known as Semi-
finished goods.
The purpose of keeping this kind of stocks is to balance the production flow.
iii. Finished Goods; These are the readymade materials which are completely
transformed and they are ready for sale or consumption.
They are lying in store rooms and waiting dispatches

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iv. Consumables. These are normally stocks of finished goods they are ready made
components, which are kept to facilitate running the daily operational activities of
the organization.
Storekeeping is the art or science which deals with the process of storing/keeping goods safe in a
good usable conditions until they are needed in future for use.
The Scope of Store Function
The scope of store function has been categorized in different ways but the commonly applicable
categories are into two types which are; Centralized or Decentralized.
a) Centralized Stores
Centralized storage means a single store for the whole organization
Advantages/significances
 Centralized storekeeping ensures better layout and control of stores,
 Economical use of storage space,
 Lesser staff are needed,
 Saving in storage costs and appointment of experts for handling storage problems.
 It further ensures continuous stock checking.
Draw backs/ disadvantages
It suffers from certain drawbacks also.
 It leads to higher cost of materials handling,
 Delay in issue of materials to respective departments,
 Exposures of materials to risks of fire and accident losses are practical difficulties in
managing big stores.
b) DECENTRALIZED STORES
Decentralized storage means independent small stores attached to various departments.
Advantages
 Decentralized stores involve lesser costs a
 Time in moving bulky materials to distant departments is minimized

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 Helpful in avoiding overcrowding in central store.
Draw backs
It too suffers from certain drawbacks.
 Uniformity in storage policy of goods cannot be achieved under decentralized storekeeping,
 More staff is needed
 Experts may not be appointed.
OBJECTIVES OF STORES FUNCTION
The general objective of store is provision of services to the operating department
The following are the fundamental/specific objectives of an efficient system of store function:
i. To ensure uninterrupted supply of materials and stores without delay to various production
and service departments of the organization.
ii. To receive, issue and store
iii. To prevent overstocking and under stocking of materials,
iv. To protect materials from pilferage, theft fire and other risks. (i.e. to ensure safety and
security of the stocks?
v. To minimize the storage costs.
vi. To ensure proper and continuous control over materials.
vii. To ensure most effective utilization of available storage space and workers engaged in the
process of storekeeping.
THE RESPONSIBILITIES/FUNCTIONS/ROLE OF A STORE DEPARTMENT
The store function as department has a lot of responsibilities in order for the organization to run its
operations among which are the following;
i. Identification of all materials in the store by defining them systematically, which include
codification, vocabulary, development, specification, standardization and locating them to
appropriate spaces
ii. Receiving all incoming materials from all sources of supply of the organization
iii. Inspection of all incoming materials for thorough through examinations using various
methods and equipment

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iv. Issuing and dispatch of materials which include attending customers’ demands, selection of
desired goods, handling them the users and packing for delivery to the distant located
customers.
v. Record maintenance such as ledger, bin card, stock sheet for the purpose of monitoring
stock movement
vi. Stock taking; this deals with physical verification of quantities and their conditions
vii. Stock accounting; this aims at showing the details of movement of goods together with the
stock balances both quantities and value.
viii. Physical storage; these deals with keeping stock under safe custody and in good usable
condition until they are required.
ix. Stock control; the establishment of good monitoring system which assist in knowing the
stock level, time for placing orders and reorder point level.
RESPONSIBILITIES OF STORES PERSONNEL
 Storekeeper
Storekeeper is a person appointed for taking care of store. He is in-charge of the store and
responsible for the control of store. Normally, all the big manufacturing concern appoints a
storekeeper. He has an important role in store keeping. The storekeeper must have some technical
knowledge and experience is store routine. Except this, he should be trained, honest, loyal and
responsible.
Duties and responsibilities of storekeeper
A storekeeper should be responsible for the following functions:
i. To receive the materials from receiving department.
ii. To maintain proper records of stores.
iii. To make arrangement for proper storage of materials and finished goods.
iv. To issue materials to production departments against proper and authorized requisition.
v. To keep an eye on different stock levels and issue purchase requisition to the purchase
department in time.
vi. To report on waste, scrap and obsolete stock.
vii. To prevent unauthorized persons from entering the stores.

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viii. Periodic comparison of physical stocks and book figures and to reconcile the discrepancies,
if any.
ix. To keep stores clean, tidy.
x. To make suitable arrangement for maintenance and preservation of the materials during
storage.
xi. To take back surplus materials returned from departments or shops.
xii. The above functions of the Store-keeper demonstrate that store-keeping is an important
factor and can make a substantial contribution to the efficient operations of a business unit.
xiii. Classification and codification of items which is received by store.
xiv. Prohibited unauthorized persons from entering inside the store.
 The Duties and Responsibilities of the Store Manager
A Stores manager is a senior person and advisor to the management, therefore, is responsible for
carrying out the following functions:
i. Recruiting employees for the store is the store manager’s prime responsibility. He not
only has to hire the right candidates for the store but also train them for their overall
development. He must ensure that all the employees (floor manager, department manager,
cashier and so on) contribute to their level best for the effective functioning of the store.
ii. The store manager must make sure his store is meeting the targets and earning profits.
He is responsible for the smooth and effective functioning of the store.
iii. The store manager is responsible for maintaining the overall image of the store. It is his
duty to sensibly display the merchandise so that it immediately catches the attention of the
customers. The store manager must ensure that his store meets the expectations of the
customers and lives up to its predefined brand image.
iv. To arrange schedule for inspection and complete the inspection and schedule for all
stores activities
v. One of the major responsibilities of the store manager is to make the customers feel safe
and comfortable in the store. It is his key responsibility to make sure that the customer
leaves the store with a pleasant smile.

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vi. He is responsible for managing the assets of the store. The security and safety of the store
is his responsibility. The store manager must ensure that sufficient inventory is available at
the store to avoid being “out of stock”.
vii. He along with his subordinates are responsible for planning, managing profit and loss,
handling cash at the store as well as collating daily sales as well as other necessary reports.
viii. He must ensure that the store is free from pilferage.