Objectives and Functions of Stores

The simplest (and very outdated) definition of the warehouses or stores is that it is the place where one keeps (or offloads) material for some time before its use. 

However, according to a more functional definition of stores, it is a place where following activities are carefully undertaken : 

Receipt of goods, timely procurement of materials, accounting the transactions, minimizing obsolescence, surplus & scrap by proper identification and using correct preservation methods, ensuring good housekeeping by accurately and timely updation, issue of receipts, ensuring issues and other documentation and handling other issues pertaining to storage and cleanliness. 

In some cases, the procurement and optimization of inventory is also added to the functions of stores. For example, the stores manager may be given the additional powers to procure urgently required items. 

In other words, the functions of stores can be classified as follows : 

1. To receive raw materials, components, tools, equipment and other items and account for them, 
2. To provide adequate and proper storage and preservation to the various items, 
3. To meet the demands of the user departments by proper issues and account for the consumption, 
4. To miniseries obsolescence, surplus and scrap through proper codification, preservation and handling, 
5. To highlight stock accumulation, discrepancies and abnormal consumption and evolve effective control measures, 
6. To ensure good housekeeping so that material handling, material preservation, stocking, receipt and issue can be done adequately, and 
7. To assist in verification and provide supporting information for effective purchase action.