Stores Management

Stores Management Store is an important component of material management since it is a place that keeps the materials in a way by which the materials are well accounted for, are maintained safe, and are available at  the time of requirement. Storage is an essential and most vital part of the economic cycle and store management is a specialized function, which can contribute significantly to the overall efficiency and effectiveness of the materials function. Literally store refers to the place where materials are kept under custody. Typically a store has a few processes and a space for storage. The main processes (Fig 1) of  store are (i) to receive the incoming materials (receiving), (ii) to keep the materials as long as they are required for use (keeping in custody), and  (iii) to move them out of store for use (issuing). The auxiliary process of store is the stock control also known as inventory control. In a manufacturing organization, this process of receiving, keeping in custody, and issuing forms a cyclic process which runs on a continuous basis. The organizational set up of the store depends upon the requirements of the organization and is to be tailor made to meet the specific needs of the organization. Fig 1 Main processes of a store Store is to follow certain activities which are managed through use of various resources. Store management is concerned with ensuring that all the activities involved in storekeeping and stock control are carried out efficiently and economically by the store personnel. In many cases this also encompasses the recruitment, selection, induction and the training of store personnel, and much more. The basic responsibilities of store are to act as custodian and controlling agent for the materials to be stored, and to provide service to users...

Materials Management

Materials Management Materials are the physical items that are needed for producing goods and services. Materials can be raw materials, components, sub-assemblies, parts, tools, consumables, services, or any other type of item. Materials are one of the main inputs to a process, and typically account for a major portion of the  costs. The significance of materials to the efficient operation of organizations is increasing more than ever. Shortages of raw materials, components, and products have been experienced on a global scale. With demand exceeding supply, the price of many materials has increased significantly. Every organization requires raw materials and other materials for its operation that must be acquired, stored, and handled, and there is always necessity for enough stocks of materials and equipment to be maintained for immediate consumption and for short and long term requirements. These stocks or inventory are cash in kind that need utmost care. Therefore the safe custody, up keep and maintenance, handling and proper supply of the materials are of great importance. Materials management is simply the process by which an organization is supplied with the goods and services which it requires to achieve the objectives of buying, storage and movement of materials. It is concerned with the flow of materials from suppliers to the organizational stores and to the user in the production department. It is related to planning, procuring, storing and providing the appropriate materials of right quality, right quantity at right place in right time so as to coordinate and schedule the production activity in an integrative manner in the organization. It includes activities of purchase of various types of materials, manage and control of their storage, and flow and supply of these materials to various places. The materials planning, purchasing, inventory planning, storage, inventory control,...

Purchase Management

Purchase Management  Materials today are lifeblood of industry. They must be available at the proper time, in the proper quantity , at the proper place, and at the proper price. Purchasing is the function of buying materials and services from external sources in an organization. It is one of  the most critical functions as it provides the input materials to the organization for converting it into output products. Purchase management is the management of the purchase and procurement process and related aspects in the organization. Purchase department buys raw materials, equipment, spare parts, consumables, and services etc. as required by the organization and hence purchase department has a very important role in the functioning of the organization. Purchase activity is one of the most crucial activity in the organization and needs an effective management. It is the main activity in the area of material management. Often procurement and purchasing are used as synonym to each other. Procurement is used to define one of several supply functions involved in logistics activities. In the broadest sense procurement includes the entire process by which all classes of resources (people, materials, facilities and services) for the organization are obtained. Since purchasing is a unique function, it differs a bit from procurement in the sense that while procurement, with the same objective has a wider domain , purchasing with the same objective is included in it. In a manufacturing  organization, purchase is the first element which affects the product cost and hence has a big impact on the organizational profit. The organization needs an efficient and economic purchasing and procurement of its various supplies of materials from the suppliers. The purchase department which performs the function of purchasing and procurement of the materials is to function very efficiently. Purchasing is no doubt a vast and complex...