Page 167 - DMGT525_MATERIALS_MANAGEMENT

Materials Management

Notes right quantity, neither in excess nor in short supply, providing it quickly as and when required,
keeping it safe against any kind of deterioration, pilferage or theft, and to carry out the efficient
performance of all these functions at lowest possible cost.

12.1 Purpose of Store Management

A significant role is played by stores in the operations of a company. Store department remains
in direct touch with other departments of a company in its day-to-day activities.

Did u know? The key objective of the stores is to provide non-stop service to the
manufacturing divisions.
Additionally, a store is time and again equated directly with money, as money is locked up on
the stores. The objectives of the stores can be classified as follows:

 Receipt: Receiving and accounting of raw-materials, bought out parts, spares, tools,
equipment and other items.
 Storage: Provision of right and adequate storage and preservations to ensure that the
stocks do not suffer from damage, pilferage or deterioration.
 Retrieval: Facilitating easy location and retrieval of materials keeping optimum space
utilization.

 Issue: Fulfilling the demand of consumer departments by proper issue of items on the
receipt of authorized purchase requisitions.
 Records: To maintain proper records and update receipt and issue of materials.
 Housekeeping: Keeping the stores clean and in good order so that the handling, preservation,
stocking, receipt and issue can be done satisfactorily.
 Control: Keeping a vigil on the discrepancies, abnormal consumptions, accumulation of
stocks, etc., and enforcing control measures.

 Surplus Management: Minimization of scrap, surplus and obsolescence through proper
inventory control, and effective disposal of surplus and obsolete items.
 Verification: Verifying the bin card balances with the physical quantities in the bins and
initiating the purchasing cycle at appropriate time so as to avoid the out of stock situations.
 Coordination and cooperation: To coordinate and cooperate with the interfacing
departments such as purchasing, manufacturing, production planning and control,
inspection, etc.
In India, owing to stiff supply positions, 4 to 6 month’s inventories are not uncommon and, in
fact, for certain imported items, it could be as high as 24 months” stock. In this context, stores
management assumes greater importance.



Caselet Assistant Store Manager

atalie has worked as a full time Assistant Store Manager for Aldi for the last 2
years. It’s her responsibility to maintain stock availability, manage staff issues,
Nensure the store is clean and tidy and even deal with the occasional theft. Not to
mention keeping the store 100% customer-focussed.
Contd...

162 LOVELY PROFESSIONAL UNIVERSITY