Eric Boafo Dadzie
School of Business, Procurement Department
Takoradi Technical University
Email: boafodadziee@yahoo.com
Abstract
Mostly a well-established organization needs a storehouse. It is within this storehouse that all the finished and semi-finished goods and work – in – progress are stored and attended to when the need arises. The stores are to provide a service to the user department of its organization. The standard of the stores service affects the entire efficiency of the organization. This is because it provides service to other user departments and the relationship between them is very important. To this end, it needs certain form of participation and information from the user departments so that the service it provides will be efficient so as to enable the organization to achieve its corporate and core objectives. Carter R.J and Price P.M (1993) opines that, stores can be can be defined in most organizations as an area in which all kinds of materials needed for production, distribution, maintenance, packaging, etc are stored, received and issued. The stores function is therefore basically concerned with holding stocks. They explained that stores operations contributes immensely towards manufacturing or production by holding issuing stocks as well as the control of all storehouses, stockyards and outside storage of items making it possible for quality control measures to be carried out by qualified and trained store personnel to avoid defective items when held in stock. The store management is invested with the responsibility of carrying out all the duties in the storehouse and stockyard by avoiding associated and unnecessary cost to ensure value for money and profitability of the company. When this function is managed and operated in a highly efficient way, it efficiently contributes to the success of the organizations productivity simply because stores holds about fifty – five (55%) to sixty (60%) percent of the organizations yearly budget.
Keywords: Stores, Management, Strategic Function, Cost Saving and Profit Maximization.
