Objectives of Stores management and how to manage them
Objectives of Stores management
-:Stores management aims at achieving a number of objectives including
A. Ensuring the flow of materials
By keeping the items required for continuous material flow and continuous production, thus feeding the production process non-stop
B. Achieving time benefit
This is done by taking advantage of the difference in prices. The storage of materials after buying them at the time of lower prices and their use at higher prices is a saving in costs. This means increasing the time benefit of the materials by storing them when available or lowering their prices to take advantage of the differences in prices When rare
C. Receiving and issuing ready-made goods according to demand
Where it is delivered from the production units waiting for export according to market demands
D. Receiving and storing waste pending disposal
Some industrial wastes or wastes are produced through manufacturing processes, which require storage until the inventory balance reaches a certain level, where they are disposed of by one of the dispositions
E. Reduction of commodity obsolescence
Whenever possible, quickly detect stagnant substances and try to dispose of them
? What are the reasons for storage
:There are a number of reasons why the establishment of storage, including
- Storage for the purpose of organizing the productive activity because of the waiting between the operations or between one section and another.
- Storage for the purpose of protection against production downtime in the case of flowing production, where the production line consists of a series of successive processes, and therefore the discontinuation of any process leads to the cessation of the entire production line.
- Storage for the purpose of protection from price increases, no storage in order to reduce the value is done through bulk purchases to obtain quantity discount.
- Storage for emergency situations where materials and goods that are expected to be scarce in the market or are permanently disappeared such as seasonal agricultural products are stored.
- Storage of speculation This type of storage is created by the desire to obtain the necessary materials at a time when the prices have been reduced to pay for the purchase and storage of large quantities of these materials in the hope of higher prices in the future.
- Lease storage by renting out warehouses to others such as cold storage or heating.