Question

Discuss the functions of the Stores Department.

Answer 1

1. Receiving and Inspecting Materials: The Stores Department takes charge of materials delivered by suppliers. These materials are unpacked, counted, weighed, and measured, then verified against the purchase order and the supplier’s invoice. Their quality and specifications are also checked, and any irregularities are reported to the Purchase Department. All received items are then entered in the stores ledger.
2. Storing Materials: Materials and supplies are kept in designated bins, each labeled with a card showing the type and description of the items for easy identification and retrieval. These bins and containers are systematically arranged in the storeroom.
3. Issuing Materials: Different departments submit requisitions to the storekeeper, who issues materials only against duly authorized requests. Every receipt and issue of materials is properly documented and recorded.
4. Safe Keeping of Materials: The Stores Department adopts measures to protect materials from theft, damage, fire, and deterioration. To cover such risks, the storeroom may also be insured.
5. Controlling Inventory: To avoid tying up excess funds in overstocking, the Stores Department sets minimum and maximum stock levels for each material. It also determines the reorder level and reorder quantity. When the stock of any material falls to the reorder level, the Stores Department notifies the Purchase Department to arrange fresh supplies.
6. Stock Taking: At regular intervals, the recorded balances of materials are matched with the actual physical stock. This process is called stock-taking or stock verification.
7. Record-keeping: The Stores Department maintains records of all material receipts and issues. For easy identification and retrieval, materials are classified and coded. The department also provides information about stock and advises top management on matters such as store location, building design, layout, and material handling equipment. Additionally, it ensures the proper disposal of obsolete or damaged materials.