The following advantages of store keeping help the organisation to receive, store and distribute materials easily & quickly.
1. Provides the proper place.
2. Leads to minimum inventory investment.
3. Leads to easy identification and specification of materials.
4. Materials estimation in anticipation.
5. Protection of material
6. Helps to minimise accident
7. Quality & Cost
Enables the continuous production
9. Reduces mismanagement
10. Other benefits.
Under modern store keeping, each item of the material is kept at proper place so that at the time of need it may be obtained easily. If any material is not kept at proper place and is not available when required then the advantages of store keeping are not fully derived.
It avoids the material in stores and thus enables the company to have more profitable use of working capital by way of minimum inventory of investment.
Store keeping will make easy identification and specifications of materials in store. It will also help in using the oldest materials first on the basis of first in first out. It provides for proper storage space, equipment and scientific location of the store rooms.
Store keeping is a link between purchasing and production. The efficient and economical receiving’s, handling, and issuing of store items, will save the investment in inventory and further it will facilitate ordering of needed materials. So, the choice of right and at right place and at right time can be made for future needs of an organisation.
By effective store keeping process, materials stored are protected against damages, deterioration, theft, pilferage, unauthorised removal etc.
The proper system of store keeping the materials when place in different racks, bins and shelves properly (and not in a haphazard manner) will help in minimising the cases of accidents.
Modern age is the age of specialisation. Qualitative goods are to be produced at lesser and lesser cost. Poor control and bad store keeping may result in the issuance of old, Semi-obsolescent materials to the factory which would create the problem of product quality. This will also create marketing problems for the company and in extreme case, may affect its reputation.
Stoppage in manufacturing operations is minimised by ensuring continuous flow of materials needed for the different jobs. Thus, production schedules are not dislocated and therefore promised delivery dates are maintained. Stock position is easily known which enables timely replenishment of stock of the needed items once the stock reaches the minimum level.
A regular analysis will be possible in order to control losses, wastages, obsolescence and pilferage and have updated information on material requirements. The good system of store keeping will be helpful in measuring, counting and weighing the store items.
Store keeping also make easy identification of materials in a store due to application of classification and codification system with the result there is no problem in the process of issuing the material to the concerned department.