STORE ADMINISTRATION IN PUBLIC SECTOR
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STORE ADMINISTRATION IN PUBLIC SECTOR
Chapter one
1.0INTRODUCTION
Stores have been seen as the lifeblood of enterprises in both the private and public sectors of the economy. Without stores, no production or operation could occur.
Manufacturers are continuously aware of the importance of stores in terms of raw material availability and the necessity for efficient storing of final products. Occasional stockouts might cause manufacturing to cease, resulting in a significant loss of anticipated revenues.
Cater R. J. defined stores in his book “Store Management and Related Operations” as a small/large building or area (stockyard) in which all types of materials, tools, spares and so on required for production, distribution, maintenance, packing and servicing are stored until they are required by users or customers.
Isola, O. T. defines stores as a building, room, or location where materials are stored.
Aside from referring to structures that hold products, the term “store” can also refer to goods housed in a storehouse or stockyard. The products may contain both finished goods awaiting dispatch and partially finished goods (WIP) awaiting completion (inventory management).
In “management of store activities,” store management is defined as the process of storing items and materials created by a person or group and making them available when needed to achieve the goal.
In his book “Modern Store Administration,” Aremu S. S. defined storekeeping as the act or process of receiving, inspecting, recording, arranging, and storing all types of materials, tolls, stores, equipment, and so on, required for production, distribution, maintenance, packing, and servicing until they are required by users or customers.
The preceding definition demonstrates that storekeeping should contribute directly to profitability and be concerned with lead time, storage cost, acquisition cost, material handling, work study in store, preservation, packaging, pre-selection, and issue packing and dispatch.
This chapter primarily examines the conceptual framework, objective of study, store functions within an organisation, types of stores, store organisation, and the interaction between stores and other main organisational divisions.
1.1 Purpose of the Study
The purpose of this study is to educate both public and private sector store personnel on how to attain adequate and proper store management. One of the primary issues facing this magnificent country is material procurement, which lacks sufficient store management and organisation.
1.2 STORES FUNCTIONS IN AN ORGANISATION
The store serves all other departments within the same industry, particularly the operative department.
(a) Store controls in most businesses account for up to 50% of working capital.
(b) Because it handles a considerable quantity of working capital, its inefficiency will force an organisation to liquidate (run out of funds).
(c) Proper storekeeping protects against deterioration, obsolescence, obsolete materials, theft, and fraud.
(d) An efficient system of store accounting aids in the development of reliable budgetary control for the organisation.
(e) Immediately provide required materials upon presentation of proper authorised documents.
(f) The transfer of materials is determined, i.e. issues and records.
(g) The security of stores is assured.
1.3 Types of Stores.
Ordinary Store:- This store is also known as stuff. The warehouse may be owned or rented by the manufacturer or wholesaler. It is where the maker keeps his products until they are needed and sold to merchants or their representatives.
BONDED STORE:- This is a location where the government stores products whose owners have not paid the applicable duties. As the name implies, it is rented from individuals who sign a bond with the government promising not to release the goods until the government indicates that the duties have been paid.
STATE WAREHOUSE AND STORE: often known as the Queen Warehouse, particularly in Britain and other countries under their jurisdiction, it is a location where products that are not permitted to enter a country
often known as contraband, are held until they are auctioned off to members of the public. This store building is owned by the government, which is why it is known as a state warehouse in countries like Nigeria and others.
Bosler W. Robert (1970, p.88) proposed five (5) classifications of store rooms based on the sorts of commodities stored. These in cases:
1. DIRECT MATERIAL STORES:- This section contains direct materials purchased in bulk that may be utilised sporadically and are normally stored in secured facilities to guarantee appropriate inventories are accessible at all times. Materials in protected stores are only given with the permission of an approved.
(a) Requisition form.
(b) Order a product or
(c) Bill of Materials
Specialised materials used in high-volume operations and standardised products are usually purchased for delivery in accordance with the production schedule and supplied directly to the operation area.
2. INDIRECT MATERIALS STORE:- This type is typically used for indirect materials such as oils, solvents, and other flammables, which are frequently stored in fire-protected facilities separate from the manufacturing operation area.
3. TOOLS, DIE, JIG, AND FIXTURE CRIBS: – Finally, tools, gauges, and inspection instruments are stored in secure crib locations. Note: (A cot is a metal box, container or tiny building used for storage).
4. MAINTENANCE AND JANITORIAL SUPPLY CRIBS:- This is a distinct storage facility that does not take up potentially valuable manufacturing space and stores maintenance and janitorial supplies, which differ significantly from direct and indirect material stores.
5. OFFICE AND CLERICAL SUPPLIES:- These supplies are often housed in a single central storeroom from which departmental requirements are not pulled as needed.
1.4 Stores Organisation.
Organisation, as a component of management, is concerned with the arranging of activities or tasks in such a way that companies’ stated goals and objectives are met through organisational structure.
It is important to remember that in order to achieve any aim, activities must be organised logically or fairly, and authority must be provided so that conflicts of action can be avoided.
Store organisation entails creating stores to best facilitate goal achievement and establishing linkages between various elements of the store.
The position of storekeeping activities in the organisation structure varies significantly from firm to company, depending on the following factors:
(i) The size of the production plant
(ii) The type and magnitude of the product produced;
(iii) The cost of raw and finished materials, including parts, tools, jigs, dies, and fittings.
In a small firm, the store function may be administered from a single office by the store keeper; but, in a large organisation, the various functions must be apportioned (shared or divided) among separate sections.
As a result, there are two basic types of store organisation:
(a) Internal organisation.
(b) External Organisation.
Internal organisation
Internal organisation is essential, where;
(1) The organisation is huge or somewhat substantial.
(2) The organisation is not production-oriented.
(3) There is no branch elsewhere.
A very good example of an internal store organisation is a servicing organisation, often known as an institution. Such organisations may include:
Identification or Vocabulary Section
Storehouse function.
Stockyard Section
Record Section
Account Section
Standardization/Inspection Section
Stock Control Section
External Section
The store external organisation is distinguished by:
i. Large organisation.
ii. Production-oriented concern.
iii. With several locations and branches.
The external organisation could then be separated into three.
(a) Central Store.
(b) Sub-stores.
(c) Department stores.
Typical Stores Organisation
SOURCE: STORE MANAGEMENT ACTIVITIES
Ishola, Timothy Oladele.
STORES
MANAGER
PROCEDURES STOCK CONTROL CHIEF VOCABULARITY
OFFICER STORE KEEPER OFFICER
Stores Manual Stock Control Management Coding
Standard form for provisioning, storehouses, and standardisation
Other instructions: General Stock Yard Specification
STORES
ACCOUNTANT
– Store Control Accounts
– Material Pricing Costing
– Chief Stocktaker.
– Stock Checking
– Outdated and repetitive reviews
Store keeper Storekeepers in a store
In charge of a central charge of a unit in charge of
Unit stores and stock stores–B unit stores
Yard -C- -D-
1.5 Relationship Between Stores And Other Major Departments
The concept of service in connection to retail operations: the stores, by virtue of their functions
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