Stores management

Traditional focus on efficient stock holding

Recent focus on efficient stock movement because:

Reduce expenditure on storage and handling
Facilitated by computerised inventory systems and
automation
Value-based supply chain concept - optimising customer
service with minimal inventory investment and operating
costs
Changes in manufacturing e.g. JIT
Development of logistics systems designed to integrate
purchasing, transportation, inventory management and
warehousing activities
The ‘Time Compression' concept
 Stores Management General Objectives

Most efficient use of space available

Rapid and easy access to stock
Efficient and balanced traffic flow
Mechanisation and automation are appropriate
Minimal travel distance for stock
Minimal number of handling occasions
Positive location and identification of stock
Appropriate product grouping relating to similar storage characteristics
and issue frequency
Maximum protection and security
Regular review of stock and processes to ensure the objectives are
continually met
Do you believe your store meets these objectives
satisfactorily?

Which objectives are most problematic?

Which objectives are met well?

 Stores Management Concepts

Pareto and ABC analysis

Cube Principle
Goods Movement Theory
Stores design & workflow
Identification & allocation of storage locations
Constraints Theory
U-flow

Low usage items

Medium usage items

High usage items

Goods-In Dispatches

Through-flow
Low usage items

Medium usage items

Goods-In High usage items Dispatches

Medium usage items

Low usage items

Identify the constraints in your organisation.

How are they managed?

 Automation

Advantages Disadvantages
Space – small footprint Cost
Speed Power or system failure
accuracy