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
