Project Materials

Store Coding And Material Identification And Effect On Store Efficiency (A case study of Nigeria Bottling Company (NBC)

Chapter one

Introduction

1.1 Background for the Study

Store codes and material identification have undergone significant changes in recent years as a result of technology innovation. As a result, risk management for store personnel has become much easier, more efficient, and cost effective, and all main activities are carried out with high accuracy. Store code and material identification is one area of store administration that benefits from this transition.

The procedure of indexing, coding, and sorting has substantially enhanced with computer system applications in various purchasing organisations. Materials arriving into stores are immediately issued a system number and file names to facilitate identification.

This is required to avoid difficulties caused by a large number of improper or incorrectly allocated material names. The lexicon of identification and coding is invariably distinct, independent, and mutually exclusive.

However, it is possible to maintain a decent vocabulary in an organisation that does not use a coding system. Successful material identification in inventory management is considerably facilitated by a logical classification system that covers all inventory objects for code purposes.

Identification is the methodical definition and description of all things in the business. The preparation and maintenance of store vocabulary is fundamentally or technically effective. The store manager and his team are responsible for controlling efficiency.

Vocabulary comprises the creation of a technique for guaranteeing that words describing things or materials are in order of importance. Regardless of whether a code system is in use, this strategy should be used.

An efficient code system helps store personnel control inventory and identify materials quickly. In contrast, vocabulary is the transfer of recognised items to writing.

Unfortunately, users from diverse departments tend to develop descriptions based on how they utilise the goods. This study attempts to identify the hazards in constructing a vocabulary. Code or shop catalogue and its impact on NBC Nigeria Plc’s retail efficiency.

1.2 Statement of the Problem

Empirical research has proven that almost every organisation has challenges with store code and material identification. In most public institutions, code is left in the hands of non-professionals or, at worst, school certificate holders.

The poor performance of those establishments can be attributed to the selection and placement of mediocre individuals in such important functions.

The issue of poor materials being handled roughly, misplaced in the middle, and mixed up, among other things, makes the principle of an item for a place and a place for an item laughable.

Training and development in an organization’s store management area has always been flooded with professionals, and it is regarded as a dumping ground for unproductive personnel because the store is viewed as nothing more than a receiving and issuing department.

Management does not regard code as a vital component of storage, and as a result, they feel inadequate and easily located, so why should so much money be spent on training staff, code, and even purchasing computers to code the variety of items housed in the shop.

Because an unprofessional can identify each item in the store using common names, this might lead to confusion and incorrect material identification, resulting in delays.

1.3 Purpose Of The Study

1. Assess the importance (efficiency) of Coca-Cola Plc’s store code system.

2. Identify the type of code used by the organisation.

3. To identify the factors for successful development of an effective code system.

4. To identify the demerit of coding system

5. Identify the responsibility of shop management.

1.4 Significance of the Study

This research endeavour has theoretical and practical implications in the following ways. First and foremost, it includes enough literature on store code and material identification as they apply to manufacturing companies in general, and Coca-Cola in particular.

This broad-based literature provides sufficient materials not only for the general public but also for future researchers who may face issues due to a lack of information on store code and item identification in Nigeria.

Furthermore, the study piques the curiosity of future researchers because the obstacles, dilemmas, and inconsistencies inherent in the store code and materials identification cannot be overcome with a single research endeavour like this.

In-depth research on this topic has surely resulted in useful field findings with practical implications for Coca-Cola management. Aside from the numerous issues that the organisation faces, an efficient store code and material identification are also required for the award of HND in purchasing and supply at Kaduna Polytechnic Kaduna.

The report makes practical recommendations for upgrading Coca-Cola Plc Kaduna’s present store code and material identification system. Finally, the need for further studies is thus stimulated in this research projects.

1.5 Research Question

The following research question would want to be addressed in addition to the objectives.

1.What are the factors employed in determing the efficiency of store management?

2. What are the symbol utilised in code system in a store house?

3. What are the advantages of coding system as utilised in the store house?

4. What are the drawbacks of coding system?

5. What are the responsibilities of store management?

1.6 Scope of the Study

The broad nature of purchasing and supply chain management, with all of its related terminologies and concepts such as stock verification, stock taking, stock checking, material identification, and code, necessitates a proper definition of research scope in order to comprehend the nature of the research and its findings.

The research project focusses on store codes and material identification, which are critical aspects of stock control and administration in modern organisations.

The purpose of this study is to examine the nature and methods of operation of Nigeria Bottling Company Plc’s store department.

1.7 Definition of Terms

Ø Store – a secure location for storing objects and preventing unauthorised removal.

The phrase “stocks” refers to commodities stored in a warehouse or yard.

Ø Storage: Keeping and protecting a thing from unauthorised removal.

Scrap refers to garbage produced as byproducts or work in progress that do not fulfil quality standards.

Obsolescence refers to when an object no longer serves a purpose inside an organisation.

Ø Obsolete – an object no longer used by the organisation.

Inspection is the physical examination and counting of incoming and outgoing products to determine their quality and quantity.

Bia cards are record cards attached to each item in the store.

Standardisation involves reducing the number of similar items in stock to a desired quantity.

A stock yard is an open storage place for various goods and items.

A stock record is a document that includes receipt details and item balances for the entire inventory.

Stock control involves organising receipts and issues on an ongoing basis.

Stock taking refers to the regular and annual inventory count.

Stock checking is a physical check of amount to determine the condition of objects stored frequently or at intervals.

Maximum stock refers to the highest desired stock level.

Minimum stock refers to the lowest level of desirable inventory.

Overstocking refers to maintaining stock above the maximum or regular requirement.

Understocking: keeping stock below the minimum level.