Aravali Institute of Management

Presentation on

Store Management With Codification

Presented by Devender Singh

1
Warehouse Management At-a-Glance
Internal
Inbound Outbound
Processing

• Purchases • Pick • Assembly • Customer Shipments

• Mfg / Assembly • Pack • Storage • Vendor Returns
• Transfers • Inspection • Move • Transfers
• Outside Processing • Count • Replenish • Outside Processing

“Senior level executives now realize that the

automated warehouse is as much a part of
e-commerce and e-fulfillment as the Internet.”
- Supply Chain Yearbook

2
Why Store Management ?

3
Business Pressures

Guaranteed Availability
Just-in-Time Delivery • How can I improve order promise
• How can I improve the speed of
accuracy?
warehouse operations?
• How do I create a global view of
• How do I integrate operations to
inventory?
reduce order processing time?

  Inbound
Internal
Outbound
                                                   
Processing

One Size Fits One

• How can I manage Lowest Total Cost
SKU proliferation? • Where can I reduce inventory while
maintaining high fill rates?
• How do I ensure
labeling compliance? • How do I improve labor efficiency?

4
 Operational Challenges
Procurement Manufacturing Order Management

Warehouse Warehouse Warehouse

System 1 System 2 System N

RF Middleware RF Middleware RF Middleware

Integration and Operation Complexity, Localized Solutions 5

 WHAT IS A STORE?

Stores, Storehouse, or warehouse – All of them refer to a building or room

or place where materials are kept.
The true function of a store is not to store a product, but to facilitate the
availability of the material as and when required.
Depending on the organization, it will have different stores like Raw
Material Stores, Processed or Semi-Finished Materials Stores, Finished
Goods Stores, Yard Stores and so on.
In case of Food and pharmaceutical industries it can be Cold or
Dehumidified.
In case of companies who are importing the goods, they can choose to
have Private or Public bonded warehouse.

6
 BROAD CLASSIFICATION OF STORES

1. Functional – Chemicals, Tools, Raw Materials, etc

2. Physical – Depending on size and location like Central Stores, Sub
Stores, Transit Stores, Site Stores, etc

7
 Classification of functional stores:

1. Raw Material Store

2. Production Store
3. General Store
4. Tools Store
5. Salvage Store
6. Packing Store
7. Spare Parts Store
8. Receipt Store

8
CLASSIFICATION OF FUNCTIONAL STORES cont’d
9. Quarantine Store
10. Finished Goods Store
11. Work-in-progress Store
12. Stationary Store
13. Bonded Store
14. Refrigerated Store

9
CLASSIFICATION BASED ON PHYSICAL NATURE

• Central Store
• Departmental Store
• Group Store
• Site Store
• Transit Store

10
 TYPES OF STORES

 CLOSED TYPE
 OPEN TYPE
 RANDOM ACCESS STORES
 ASRS
 CONTRACTOR OPERATED STORES (C&F or 3PL)
 CUSTOMS BONDED WAREHOUSE

11
 WHAT IS STORES MANAGEMENT?
 Stores Management is an integral part of the overall function of
Materials Management.
 The task of Stores Management relates to safe custody and
preservation of the materials stocked, to their receipts, issue and
accounting.
 Objective is to efficiently and economically provide the right materials
at the time when it is required and in the condition in which it is
required.
 The company doesn’t make money by storing a product, unless of
course, the price of the product escalates with passage of time, such
as with wine and antiques. Hence, maximum we store, maximum we
loose.

12
The main objectives and functions of Stores Management:

 Standardization of stock items by unified coding for easy

identification of materials, components and parts, efficient
assessment of the stock needs and better utilization of the available
stock.

 Custody and issue of stores to the consuming departments based on

the requisitions placed by the indenters.

 Classification of items based on their value, usage and source.

 Adopting scientific methods of storage, to minimize losses due to

deterioration, obsolescence, breakage, leakage, thefts etc.

 Proper recording of transactions and periodical review of balances

under different suspense heads for keeping up to date stores
accounts.

13
 WHAT ACTIVITIES ARE CARRIED IN STORES
 Identification of all Materials stored
 Receipt and inspection
 Storage and preservation
 Issue and dispatches (Material Handling)
 Records and recording system
 Materials Accounting
 Approaches to Provision of Materials
 Stock Control Techniques (Inventory Management)
 Stock Checking and Stock Taking Methods

14
 WHAT ACTIVITIES ARE CARRIED IN STORES

 Classification of items stores (A,B,C Analysis)

 Scrap Accounting and disposal
 Stores Safety and Security
 Storage Equipment and Materials Handling
 Procedure Manuals

15
LATEST PRACTICES IN STORES MANAGEMENT

• Bar Codes used for identification and for

accounting
• Standardization of items stored (Variety
reduction & Fewest Locations)
• Automated Material Handling System
• Automated storage equipments
• Use of vertical space
• ERP / SAP etc., aimed at accuracy of
stocks held
• Paperless Stores Management

16
 INVENTORY TAKING METHODS

 PERPETUAL INVENTORY
 PERIODIC STOCK TAKING

17
 PERPETUAL INVENTORY
1. Carrying out continuous verification of stocks and related items at Company
and Outside Locations, with a view to detecting and reporting any quantity
variations.
2. Reviewing factors responsible for stock discrepancies and ensure controls
for custody and handling of stocks including -
(a) Godown physical handling,
(b) Security arrangements,
(c) Receipts
(d) Storage
(e) Dispatch Procedures
(f ) Stock Record Maintenance at Divisions/Godowns,
3. Recommending appropriate procedural administrative improvements
4. Following up from time to time and ascertaining whether necessary
corrective actions arising out of perpetual inventory findings have been taken
by Divisions/Admn.
5. Exercising checks on those responsible for custody and handling of stocks.
 THE EMERGING TECHNIQUES

 With the concept of JIT – Stores operations can be eliminated/

reduced
 Outsourcing of warehousing (Generally finished goods or spare
parts meant for sale) activities
 Customized warehouses (For value additions like customized
packaging, addition / removal of specific components to meet the
minor product variation required by customers
 High tech movement tracking system

19
VERTICAL STORAGE SYSTEM

                           

20
 USE OF MAZANINE

 
                        
                        

21
 Bins
BINS & Containers
& CONTAINERS

                   

22
 RACKS

 
                                          
                                   

23
Gravity Wheel Conveyor

24
 LIFTING EQUIPMENTS

Back Saver Lifts Space Saver Lifts

  Pallet Level Loader
                             

Elevating Helper
25
  
Electric Powered
Rider Straddled
Trucks
Lift Trucks
                                                                       
Reach Trucks
Side Lifting Trucks

                                                      

Walk Rider Pallet Gantry cranes

Trucks Hoist
Over Picker Trucks

26
Mini Automated Storage Retrieval System (ASR)

27
Pallet Racking

28
Drive-in-Racking

29
Mezzanine Floors

30
Cantilever Racking

31
Heavy Duty Shelving

32
Multiflex Shelving

33
Long Span Shelving

34
Mobile Shelving

35
Cabinates

36
Workstations

37
Tool Handling System

38
Modular Trolleys

39
Pick To Light

40
Put To Light

41
Polypropylene Plastic Products

42
Store Van

43
Pallets

44
Bar-coding
• Barcode technology into warehousing management
enables to realize the automatic data collection in
warehouse operations, such as incoming inspection,
warehousing, sending materials out of warehouse,
allocating, changing warehouse/location. And stocktaking.
• It ensures the efficiency and accuracy of data entry in each
operation in the warehousing management, ensures the
enterprise to master the actual data of stock in time, keep
and control the enterprise stock reasonably.

45
BARCODING SYSTEM 46
Why Barcode

• Traditional warehouse system usually depends on a

non automatic paper-based system to record and
trace the incoming and outgoing cargo, manage by
human memory
• Uncertainty of human factors may cause the low
efficiency of labor and loss of human resource

47
 Example

Features:
 Automates issues and returns
 Provides real time inventory visibility
 Scanners on shelves for automated inventory
 Minimizes labor cost
 Example- Waste Management
• Facilitates Real time
monitoring of operations
• Optimization of Waste
collection
• Accurate billing for the
citizen
Automatic toll collection
• Benefits:
• Increases patron convenience
and safety with nonstop
payment
• Improves traffic flow/reduces
commute times
• Reduces traffic congestion
• Lowers operating costs for toll
operators
• Provides proven reliability and
unparalleled accuracy
at

51