A storehouse is a structure used to store resources, supplies, and finished goods..

The size and

layout of the plant, the nature of the goods held, and the frequency of purchases and issues of
materials all influence how the stores department is organized. Storekeeping relates to art of
preserving raw materials, work-in-progress and finished goods in the stores. The main essence
for stores include ensuring uninterrupted supply of materials and stores without delay to various
production and service departments of the organization, convenient to control the physical stock
balances more effectively. This discussion seeks to explain why stores functions are essential to
manufacturing company.

Issuing purchase requisitions to Purchase Department

In the light of above objects, the functions performed by the stores department include issuing
purchase requisitions to Purchase Department as and when necessity for materials in stores
arises. This will assist in prevent overstocking and understocking of materials. Cost associated
with over or under stocking. They can also employ Just In Time (JIT) were necessary In order to
achieve minimum stock holding cost.

Receive purchased materials from the purchase department

Another function of stores Department is to receive purchased materials from the purchase
department and to confirm their quality and quantity with the purchase order. Inspection of
quality in important in early detection defected good from suppliers, identification of goods
about to expire and substandard goods. This will minimize instore breakages and other costs
associated with breakages.

Storage Risk control

Storing the materials in such a manner so as to minimise the occurrence of risks and to prevent
losses due to defective storage handling in another function of Stores in a manufacturing
company. The stores department will ensure maximum security to the stored material such by
installing security measures such as locks, bugler bars, dump proofs, surveillance camera and
alarms, this will assist in reducing damage of material, theft and pilferage of material.
It is also a function of Stores department in manufacturing company to store and preserving
materials at proper and convenient places so that items could be easily located. This can be done
by putting critical items on easily accessible places. Fragile material that need special handling
and care are placed on most appropriate places where there is limited movements and damage.
Proper order in stores will assist in identification of goods about to expire and any damaged
goods by insects and rodents

Record keeping

Stores department undertake a proper system of inventory control, taking up physical inventory
of all stores at periodical intervals and also to maintain proper records of inventory. They keep
proper and up to date inventory records such as Bin Cards, that records all materials entering or
leaving the bin and balance of material in hand is kept in this card. Daily Receipt Register, that
records all the material received into the warehouse and an issue Register to record all stock
issued out. Other records kept include Store Accounting records that records the quantity and
values of stores held to provide information about values of receipts and issues.

The importance for keeping records in stores department include Concise reports on scrap,
obsolete stocks can be prepared regularly. Material that need replenishment are easily identified
through the use of stock cards. When they reach the re-order level, the stuff in stores will alert
the purchasing department. Keeping Store Accounting records will assist in the valuation of
stock in the preparation of company periodic financial reports such as Statement of financial
position. If stores accounts record are properly kept and updated, it will be ease to compile the
value of opening and closing stock of raw materials, work in progress (WIP) and finished goods
as at any given date.

Physical stock-take
Stocktake involves physical counting of stock comparing with the quantities in the system
records. Stocktaking allows Managers to keep an accurate track of the physical stock or track on-
hand inventory, what’s been sold, and what hasn’t via analyzing the physical stock to what the
report says then finding any discrepancies. Know if there’s a significant miscalculation between
what is on the stock records should have and what is actual on ground. Stock-take can highlight a
number of problems including theft and shrinkage problems. By stock-take eventually, you’ll
know how much is it costing your business to hold an inventory. Stock-take also helps
businesses find out if there is a need to produce more or less to keep up with expenses or
maintain the same income stream.
From the above discussion one can tell that stores department plays a critical role in the smooth
flow of production in the manufacturing company. It is worth noting that stores department need
to coordinate with other fuctional departments of a manufacturing department such as
Procurement, finance , production and marketing in order to avoid over or under supply of
material and minimize stock holding costs.