The cost of materials is one of the largest elements of cost. Proper storing of materials is very important to prevent losses from damage, pilferage and deterioration in quality of materials. The stores must, therefore, be properly organised and equipped for the handling of raw materials.
Ideal stock levels must be maintained for every item of raw material so that the production departments get their required quantity of materials in time, and excessive working capital is not unnecessarily locked up in overstocking. Moreover, overstocking enhances the cost of production. However, the store department should be under the control of a technically qualified Store Officer.
Functions of Storekeeping:
In the light of above objects, the functions performed by the stores department are outlined below:
- Issuing purchase requisitions to Purchase Department as and when necessity for materials in stores arises.
- Receiving purchased materials from the purchase department and to confirm their quality and quantity with the purchase order.
- Storing and preserving materials at proper and convenient places so that items could be easily located.
- Storing the materials in such a manner so as to minimise the occurrence of risks and to prevent losses due to defective storage handling.
- Issuing materials to various departments against material requisition slips duly authorized by the respective departmental heads.
- Undertaking a proper system of inventory control, taking up physical inventory of all stores at periodical intervals and also to maintain proper records of inventory.
- Providing full information about the availability of materials and goods etc., whenever so necessary by maintaining proper stores records with the help of bin cards and stores ledger etc.