How Stores Department functions?

Have you ever wondered, how the company's stores department functions properly, and sees to it that, it is not overloaded with extra material, nor it runs out of stock; this is the most remarkable feature of effective and efficient stores management.

How do organization makes it possible to invest in materials or stores optimally?

A good stores department ensures that the company has only that much material, which is required to smoothly carry out all the production functions, and sees to it that, the organization doesn't keep money idle in the form of such investment. A Stores and Assistant Stores Manager scientifically calculates the organizational requirement, with the help of Production Manager, and allows only that much material to be there in the stores department.

Need for good inventory control management system:

This can be possible only with a good monitoring and feedback system, which is effectively coordinated by an Inventory Control Manager to ensure smooth production functioning. Hence, you have to pay considerable attention to the stores functions, because it involves blockage of money, and results in increased cost of production.

Thus, if you need to cut down your production cost considerably, you need to have a good support system, which ensures that the organization has optimum investment in the stores, and at the same time, all the production functions are carried out smoothly,

Advantages of advanced inventory control techniques:

A good stores management is remarkable for the following benefits:

• Saves organizational production cost, and avoids idle investment in the stores
• Assists in having a sound and systematic planning of the stores materials
• Ensures full conformance to standard practices, and helps in achieving benchmarks
• Regulates and ascertains good coordination between marketing, production, finance and materials department, so that organizational objectives are met with strict conformance to the given set of policies and procedures
• Becomes easy to monitor materials flow, and systematize the stores functions; thus, it helps to effectively coordinate various activities in connection with stores and materials handling, and results in lowering the production cost.

Hence, every organization needs to pay due consideration to its stores department, so that it can maximize its profit portion, by reducing costs involved in stores function.