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Unit 12: Warehouse Management

Notes
Figure 12.5: General Schematic of Stores Activities

The stores department should be under the control of a stores manager. He is responsible for
receipt, storage and issue of materials. The functions shown in Figure 12.5 can be divided into a
number of duties and responsibilities. These are as follows:
(a) To receive materials, arrange for inspection and accept them after proper verification of
documents.
(b) To prepare stores received note promptly and circulate the copies to other departments.
(c) To store the accepted materials of right quantities against authorized stores requisitions.

(d) To issue correct materials of right quantities against authorized stores requisitions.
(e) To enter receipt, issues and return of materials in the bin cards, and to maintain other
stores records.

(f) To issue purchase requisition when reordering level is reached.
(g) To check bin card balances with the physical quantities in the bins periodically.
(h) To follow rotation of stocks to avoid holding old stocks.

(i) To report on waste, scrap, slow-moving, non-moving and obsolete items.
(j) To maintain stores in a tidy manner for easy access to bin at any time.
(k) To receive and issue finished products for despatch to the distribution chain.

The procedures for receipt start even before the time the material reaches the plant: when a
purchase order is placed, a copy is sent to the stores. Once a Purchase Order has been issued the
information sits in the system until the goods/service is received. Inbound deliveries which
include stock transport orders, production orders, and Advanced Shipping Notification (vendor
document) contain the exact materials, quantities, and the delivery date with reference to a
purchase order. This becomes the basis for the receipt process.

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