STORE KEEPING

Introduction

Meaning of Storekeeping
Storekeeping is a specialized and important function of material control that is especially
concerned with the materials and material related goods. The storekeeper is responsible for
safeguarding and keeping the materials and supplies in proper places until required in
production.
Store keeping is a skill that involves the maintenance and safety of raw items, supplies,
materials, finished products and other store items inventories. The store keepers are obligated
and responsible for the handling and maintenance of the store materials and making sure that
there's no damage or deterioration of the inventories. Becoming a store keeper isn't that hard and
a person can learn different skills and knowledge concerning the job role and business. Below I'll
explain the work of a store keeper, their work environment, and the requirements to become a
successful store keeper.
A storehouse is a building provided for preserving materials, stores and finished goods. The in-
charge of store is called storekeeper or stores manager. The organisation of the stores department
depends upon the size and layout of the factory, nature of the materials stored and frequency of
purchases and issue of materials.

Store-Keeping: Meaning, Types, Objectives Functions and Working of the Stores!

Meaning:
A storehouse is a building provided for preserving materials, stores and finished goods. The in-
charge of store is called storekeeper or stores manager. The organisation of the stores department
depends upon the size and layout of the factory, nature of the materials stored and frequency of
purchases and issue of materials.

According to Alford and Beatty “storekeeping is that aspect of material control concerned with
the physical storage of goods.” In other words, storekeeping relates to art of preserving raw
materials, work-in-progress and finished goods in the stores.

Stores usually guide purchasing on which are stock items and which are non-stock items.
It's on the stock items that stores compliment purchasing. A store has to constantly replenish
stock items to avoid production or service provision break downs.

It is service function and the storekeeper is incharge of storekeeping. He is the warden of the
goods stored in the store and maintains a record of all movements of materials. The storekeeper,
in fact, is a connecting link between planning and the production department. Purchasing control
must be matched by effective stores control to avoid losses from damage, deterioration and
carelessness.
In the process of material control, after any purchased materials are received and checked, the
next step is the storage of materials, also known as storekeeping.

Store keeping is the task of maintaining safe custody of all items of supplies, raw materials,
finished parts, purchased parts, and other items. These items are held in a storeroom for which a
storekeeper acts as a trustee. As such, storekeeping can be defined as process of receiving and
distributing stores or supplies.
According to Alford and Beatty, “storekeeping is that aspect of material control concerned with
the physical storage of goods.”

In the words of Wheldon, “storekeeping is the physical storage of materials carried into the store-
room in a scientific and systematic manner with a view to (i) saving them from all kinds of
damages and losses, and (ii) exercising overall control over their movement.”

In short, storekeeping refers to the art of preserving raw materials, work-in-progress, and
finished parts in the stores in the best possible manner.

Generally, in small businesses, storekeeping is a minor task. However, it is always worth

remembering that careless handling of materials, material pilferage, and deterioration of
materials can lead to reduced profits and even losses.

Therefore, to ensure maximum efficiency, it is important to maintain a well-equipped

storekeeping department.

Spriegel and Lansburgh rightly remarked: “Poor control of materials is frequently accompanied
by poor store-room administration in a way that may easily throw out of balance any operation
programs which have been adopted.”

STORE
Meaning
1. A place where merchandise is offered for sale; a shop.
2. A stock or supply reserved for future use.
3. Supplies, especially of food, clothing, or arms.
4. A store is an establishment where merchandise is sold, usually on a retail basis.

A store is a place where goods are sold to the public. In British English, a store is large and sells
many different things, but in American English, a store can be large or small, and sell many
things or only one type of thing
A store is a place where things are kept for retail purposes whereas a warehouse is a place where
things are just stocked and then moved to their point of sale which might be a store, a mall or a
supermarket.
The key purpose of both is storage and proper preservation of goods, whereas stores are not
heavily bound to follow all the safety and preservation protocols as much as warehouses. That is
the reason warehousing has turned out to be a very fruitful business over the years.
The reason why warehouses have to be well-equipped and stores not as much is, the number of
time products and goods spend at warehouses is comparatively longer than it is kept in stores. In
stores, it’s mostly in and out.
Another reason for warehouses to be more up to date is the quantity in which products and goods
are kept in it, which is a lot more than it is kept in stores

The term store is used for small scale operation, for storage of goods/spare parts/consumable
items.
Warehousing is used for bigger operation with full facility of fork lift, truck, systematic storage
of goods which can be located through software and in most of cases all operations are
automated including picking the item from the shelf, packing and loading in the truck for
delivery at designated point.
A warehouse is something that deals with finished goods. These are distribution channels located
in various cities to help improve the delivery of goods and products to end users.
A Store is a space inside the company that has storage of both raw materials that are needed to be
processed and the finished goods as well.

Warehouse will be outside the industry, may be distribution channel or in another city to help
customers to get products delivered fast.
A store is in-house facility to help manufacturing activities,Such as incoming and in some case
outgoing also stored in stores.
Stores always indicate the place of Raw material storing. Warehouse is for the Finished Goods at
times can also be interpreted input of finished goods.
Store is small in size and warehouse is bigger mostly used by electronics company. use store and
automobile comp. use warehouse activity is same of both the area.
Objectives of Store keeping
Store keeping includes the handling and recording of materials. Following are the main
objective of storekeeping:
1. Effective use of available store space.
2. It avoids over and under stocking of material.
3. Efficiently and economically receiving a material, handling and issuing of stores.
4. Protecting goods stores against fire, loss, theft, and obsolescence.
5. Ensuring an adequate and timely supply of stores under proper requisition and authorization.
6. To ensure uninterrupted supply of materials and stores without delay to various production
and service departments of the organisation.
7. To prevent overstocking and understocking of materials,

8. To protect materials from pilferage, theft fire and other risks.

9. To minimise the storage costs.

10. To ensure proper and continuous control over materials.

11. To ensure most effective utilisation of available storage space and workers engaged in the
process of storekeeping.

12. Effective use of available store space.

13. It avoids over and under stocking of material.

14. Efficiently and economically receiving a material, handling and issuing of stores.

15. Protecting goods stores against fire, loss, theft, and obsolescence.
16. Ensuring an adequate and timely supply of stores under proper requisition and authorization

Store Keeping Functions

The main functions of storekeeping are performed in an organization’s Stores Department. They
include:

[Link] purchase requisitions to Purchase Department as and when necessity for materials in
stores arises/required.

2. Receiving purchased stores from the Receiving Department and verifying that every lot of
stores is supported by an indent, a purchase order, and an inspection noteand to confirm their
quality and quantity with the purchase order.

3. Storing and preserving materials at proper and convenient places so that items could be easily
located.

4. Preparing Goods Received Note in accordance with the different stores lots received.

5. Ensuring that all the Goods Received Notes are regularly posted to the Bin Card.

6. Placing and arranging stores received in suitable places and adhering to the golden principle of
storekeeping: “A place for everything in its place.”

7. Minimizing storage, handling, and maintaining costs by preserving and handling materials in
the most economical and efficient manner.

8. Issuing stores to various business departments and ensuring that all issues are properly
authenticated and accounted for.

9. Ensuring adherence to issuing procedures and organizational systems and guidelines.

10. Periodically reviewing the inventory by initiating inventory control systems (e.g., perpetual
inventory control system and ABC system of inventory control).

11. Disclosing fullest and up-to-date information about the availability of stores whenever
required. This depends on maintaining proper stores records with the help of Bin Cards and a
Stores Ledger.

12. Safeguarding materials from theft, pilferage, fire, and others.

13. Supervising and coordinating the duties of different staff working under the direction of the
storekeeper.

14. Preventing the entry of unauthorized persons in the stores.

15. Maintaining proper stock levels, which are fixed in respect of every item of stores, and
replenishing them when necessary.
16. Providing full information about the availability of materials and goods etc., whenever so
necessary by maintaining proper stores records with the help of bin cards and stores ledger etc.

The characteristics of a good store:

Factors Considered When Setting Stores;

Selecting a suitable location for the retail business can be a challenging and consequential
decision. Since the retail sector remains a highly competitive and resilient market, the focus is to
open a storefront in an area that encourages the business presence, walk-in traffic, and revenue.

1. transportation

2. exapansion

3. tidiness

Other factors include:

[Link] of markets to be served

2. Location of production centres

3. Quality, availability and versatility of transportation

4. Quantity to be transported or stored

5. Accessibility; road is open the year round

6. Utilities: site served by water and electricity

7. Communication: reliable telephone service

8. Drainage: neither site nor surrounding are subject to flooding due to direct runoff or high
water table

9. Size: unimpaired entry and exit for large vehicles

10. Security: area not likely to invite invasion or vandalism

11. Proximity: good access to transport links, railways, highways etc

Qualities of a Storekeeper
The following are some of the qualities of a good store keeper;
1. Physically strong
[Link] communicate effectively
[Link] who normally keeps the store clean and neat
4. Somebody who have accurate stock records
5. Somebody who can influence a group of people to accomplish tasks
6. Computer literacy
[Link] accurate stock level
[Link] who normally ensure availability of stock by avoiding stock-out
9. Somebody who normally adhere to safety measures so as to avoid accident
10. Somebody who can manage inventory very well without any shortage or discrepancy
11. Somebody who can account for all stock purchase or available.
Other Qualities include:
1. Reliable flow
2. Reliability and
3. Efficiency
Types of goods kept in a Store
Basic types of inventory
There are five types of inventory when it comes to the products a business might sell.
These are:
1. Raw materials
2. Work-in-progress (WIP) inventory
3. Finished goods
4. Maintenance, repair and operations (MRO) goods.
5. Packing materials
Each of the above is explored further below:
1. Raw materials
Raw materials are any items used to manufacturefinished products, or the individual
components that go into them. These can be produced or sourced by a business a business itself
or purchased form a supplier.
For example:
A business that makes its own bespoke furniture may purchase materials form a supplier. While a
small business supplying specially herbs may actually grow these itself.
Either way, raw materials are still considered a type of inventory. And so must be managed,
stored and accounted for accordingly.
2. work-in-progress (WIP) inventory
Work-in-progress (WIP) inventory again refers to retailers that manufacture their own products.
These are unfinished items or components currently in-production, but not yet ready for sale.
For our furniture business, this may be products that have been put together without yet being
painted or packaged.
3. Finished goods
Finished goods are products that are complete and ready for sale. These may have been
manufactured by the business itself, or purchased as a whole, finished product from a supplier.
Most retailers will either purchase whole, finished products from a supplier, or have custom
products manufactured for them by a third-party. Finished goods are therefore often (but not
always) one of the only types of inventory needing to be handled within retail inventory
management.
4. Maintenance, repair and operations (MRO) goods
Maintenance, Repair and Operations goods are items used within the manufacture of
products, but without directly making up any part of a finished product.
This can include items such as:
a. production and repair tools
b. uniforms and safety equipment
c. cleaning supplies
d. machinery
e. batteries
f. computer system
And all items that are consumed or discarded during the production process.
Small types of inventory like this seem menial ( ). But MRO is inventory that still needs
to be purchased from a supplier, stored somewhere and accounted for in financial records.
5. Packing material
Packing materials are anything you use for packing and protecting goods-either while in
storage, or during shipping to customers.
This is there particularly important for online retailers. And may include things like:
a. bubble wrap
b. padding
c. packing chips
d. a variety of boxes

TYPES OF STORES
Although, there are various types of store, the following are the commonly used by
manufacturing company. Basically, there are three types of stores as follows:
1. Centralized stores
2. Decentralized stores
3. Centralized stores with Sub-stores

Centralized Stores:
Definition
When an organization receives raw materials in one warehouse but supplied the raw materials
several production centres or departments and divisions is called centralized store. When the
management of the company is very strict regarding the materials control, they follow central
management.

If there is only one store to receive and issue materials to all departments of concern, such store
is called centralized stores. In this type of store, all materials are stored in one place called a
central store. Materials are received by and issued from one store's department in centralized
stores.
This type of store is used by most of the manufacturing company. The main objective of a
centralized store is to purchase and issue all the materials required by all the department.
Advantages of Centralized Store
The advantages of Centralized store enumerated as follows:

1. Better supervision could be possible due to its single location

2. Materials are tightly controlled due to specific area
3. Better layout can be made
4. High technical skills maintained by store supervisor
5. As stock are kept as low as possible , it has needed a lesser storage area
6. Better facilities for stores audit
7. Easier stock taking is possible
8. Lower cost of insurance is required
9.
Disadvantages of Centralized Store
1. Due to frequent transport to production centre, departments and divisions , a higher transport
cost is incurred
2. Possibility of bottle neck in the flow of materials to production
3. It has a greater risk of obsolescence
4. Due to centralized store, production may be hampered due to delay material supply.

Decentralized Stores:
Definition
Decentralized Store is the store where materials are received and issued from the same place. A
large group of company maintain decentralized store nearer to its production centre so that they
can avoid production disruption and minimizes the carrying cost of inventory. Every production
department purchase and handle raw materials separately. Decentralized store is suitable where
there is huge materials movements and production.

This store has emerged due to disadvantages of centralized stores. It is a just reverse system of
centralized stores. Under this system of a store, in each department, there should be an
independent or separate store. Each department has to make a separate store for recording the
materials they required. It is not so popular because it required more installation cost and a
separate store in each department.
Advantages of Decentralized Store
a. Easy materials controlling and storing functions
b. Materials handling can be quicker than centralized system
c. Minimizes the chances of materials losses due to fire, carrying etc.
d. Internal Transportation costs is not needed
e. Materials handling costs can be saved
f. Requirements of individual departments can be easily fulfilled

Disadvantages of Decentralized Store

a. Supervision costs of materials are relatively higher.
b. More space is required for individual departments.
c. Investment amount is comparatively higher.
d. Very chance of misappropriation of stock due to appropriate authority.
e. As separate store, additional staff is needed. Hence staffing costs will be higher.

Conclusion
Both Centralized and Decentralized store has some advantages and disadvantages. Management
will decide what kind of store exactly needed according to their size of business. Centralized
system minimizes the employee costs and secures the materials but at the same time they have to
pay big amount for transport cost for Centralized Inventory system. However, management
attitude is the important whether they will adopt Centralized Inventory System or Decentralized
Inventory system.

Centralized Store with Sub-Stores:

In this store, the imprest system of stores is used where each sub-store is given some beginning
stock. In a big organization, the central store is far from production department and due to which
transportation cost increases. To reduce the cost of handling and transportation, a sub-store is
maintained near production department and sub- stores are managed by central stores. Sub- store
gets materials from the central store.
Warehouse
A warehouse is a facility that, along with storage racks, handling equipment and personnel
and management resources, allows us to control the differences between the incoming flow of
goods (received from suppliers, production centers, etc.) and the outgoing flow of goods (goods
being sent to production, sales, etc.).

Stockyards
What is stockyard in warehousing?
This term 'stockyard' refers to areas in a shipyard that hold all manner of parts, pieces, or
equipment that may be hard to house, store, or handle because they are large or used
infrequently.

Stockyards provide an invaluable function in materials handling, as they serve as material

buffers, reserve storage or blended storage between incoming and outgoing materials.

What is the difference between warehouse and stockyard?

The warehouse is a large building where raw materials or manufactured goods may be stored
before their export or distribution for sale. Stockyard is a large yard containing pens and sheds,
typically adjacent to a slaughterhouse, in which livestock is kept and sorted.

Manufacturer Stores
What are manufacturer owned stores?
In general, PFI describes a setting where the manufacturer sells to end consumers not only
through traditional independent retailers but also through company-owned stores.

Packing store:
Packing materials are kept here and these include wood for making crates, cardboard cartons or
bottles, as in a pharmaceutical company, or empty cylinders.

Spare parts store:

These spares are usually required by Maintenance for repair or overhauling of equipment and
machinery in the factory. Such a store can also have spares and components, which have been
manufactured in plant or purchased from outside and meant for production. This is also called a
finished parts store, semi-finished parts store or component store.
Receipt Store:
This is where goods are received from vendors or those cleared from the railway station, airport
or the docks. The materials arriving here have to be retained until they are inspected, finally
accepted and sent on to the respective places for storage, or directly to where they will be used.

Quarantine Store:
Here materials received from outside awaiting inspection, and this is usually a part of the receipt
store. The term quarantine is used because often inspection may not be completed in a day; e.g.,
a lab test may be required for specific items. In such cases, these materials are placed in the
Quarantine Store.

Finished Goods store:

Finished products of the company meant for despatch to customers or for transfer to another
stock point or distribution center are kept here.

Work-in-progress Store:
In many cases a particular shops produce an item in batches, e.g., 1000 units. The other shops
might not be able to reach this figure or the actual quantity required might only be 200. Here rest
of the 800 units in semi-finished from are kept in the WIP Store for future use. This is neither
raw materials nor finished goods. It is in an intermediate state. In some instances the Spare Parts
Store can also be a WIP Store.

Stationary store:
Keeps office stationary for issued to various departments departments of the company.

Bonded store:
This is a store is goods on which customs or excise duty has not been paid.

Refrigerated store:
This type of store is used for storage of perishable items like fruit, meat, chemicals, medicine,
vegetable, etc. it further comprises:
Chilled space store, where the temperature can be controlled between 32 F and 50 F.
Freeze space store, where the temperature can be controlled below 32 F
Flammable materials store:
This is used for the storage of highly combustive material like oil, paints, etc. this store consists
of separate compartments partitioned by fire walls, which is done with a view to prevent
movement of flames from one area to another in the event of a fire. These fire walls will
normally have a four hour fire resistance rating. The main dependence for fire protection is
placed on an automatic deluge type sprinkler system connected to an adequate water supply.

Dehumidified store:
It meets the need of materials or equipment to be stored in a moisture-free atmosphere (humidity
free condition). When properly sealed and conditioned almost any type of item can be stored
here efficiently.

Transit Sheds:
These are normally roofed sheds without any walls and open on four sides and are mainly
intended to protect goods from sun and rain. One can find such sheds in ports, adjacent to
berthed cargo ships. They are specially adapted for the items are handling of material shipped or
received by sea. Here the items are handled and stored in bulk quantities. In certain cases, the
Food Corporation of India stores bags of rice or wheat in such open sheds. ‘Transit’ signifies that
storage is temporary and that the goods are to be moved out soon.

Dry Tanks:
Dry tanks are used for long term storage and are constructed entirely with steel, except for a
concrete floor. Because of the size and shape of dry tanks, there is no operating aisle for
materials handling equipment. There is no direct access into the tanks, which are sealed after
materials are stored in them. The dry tanks can be temperature controlled and dehumidified.

Shed storage:
A shed is a roofed structure without complete side and end walls, and is used for the storage of
materials that require maximum ventilation or those that do not require protection from weather.
This type of building is a compromise between a yardstore and a closed stores building, because
it offers more protection to materials than former but less than the latter. If necessary, tarpaulins,
can be used on the side for protection during the monsoon. It is built at ground level with a
concrete floor.

Open Yard:
This is used for storing bulk items, which do not require specialised storage. Even though there is
no protection from sun and rain, the surface of the open yard is normally levelled and is covered
by sheets or steel mats.

Departmental Store:
This serves a particular department of a factory. For example, in a textile mill there can be
several departments like spinning, weaving, bleaching, printing, etc. each of which can be served
by a separate store. The reason behind this is that each requires sparate kinds of materials. This
store, then becomes a specialised store. Actually. There need be little difference between this
category of store and a sub-store.

Group Stores:
In some companies it can happen that several factories belonging to the same group are all in one
compound. For example the J. K. Group of Industries has several factories belonging to the same
owner, which have been set up in one big industrial estate. There can be a garment factory, a
chemical plant, a radio factory and a foundry all belonging to one group and located at the same
place. The group stores can serve all these units.

Site store:
This is usually at a project site containing building or construction materials like cement, steel,
tools, etc.
Transit store: as its name implies, this is where goods are stored for a temporary period.

Special Stores

What Is a Specialty Store?

A specialty store is a business that focuses on selling a specific product or a narrow line of
products. Specialty stores are often retail businesses that focus on particular product
categories. Retail stores sell small quantity of items for quick consumption instead of selling for
resale purposes later on. Specialty stores can also sell a wide variety of products but in a specific
category of goods. Specialty stores can be small retail shops, national chain stores, or locally
owned stores.
What is retail specialty?
Specialty retail stores are the most common type of specialty store. These businesses purchase
items in bulk from wholesale stores or other providers in order to resale them for profit. Some
specialty retail stores can sell only company branded products. This means that the retail brand
will be specific to those stores. Retail stores can also sell many brands of products, but the
product category is narrowed to include one main theme.
Specialty Store Examples
Specialty retail stores can be many different types of businesses. Some examples of different
types of specialty stores are as follows:

a. Furniture stores
b. Bookstores
c. Florists
d. Health foods
e. Video games
f. Outdoors store
g. Coffee shop
h. Jewelry store
Another example of a specialty store can be a business that is a national chains and has many
locations. For specific examples of specialty stores, the following all offer specific brands of
products or specific types of products within a narrow scope of product lines:

a. Home Depot sells mostly construction material and home remodeling supplies.
b. Staples sells mostly office supplies and office equipment.
c. Victoria's Secret sells mostly women's intimates. Victoria Secret stores can be found as
standalone buildings or inside malls and outlets.
d. Starbucks sells mostly coffee or tea along with some breakfast items and coffee products
such as mugs, bags of coffee, etc. Starbucks is also located inside other stores, businesses,
malls, and other organizations.
e. Footlocker sells mostly shoes but does also offer some athletic wear and other accessories
Working of the stores:
There are four sections in the process of storekeeping viz.

(a) Receiving section,

(b) Storage section,

(c) Accounting section, and

(d) Issue section.

These are explained as under:

(a) Receiving Section:
There are four kinds of inventories received by stores viz., (i) raw materials, (ii) stores and
supplies, (iii) tools and equipments, (iv) work-in- progress or semi-finished goods.

Following procedure is followed in receiving these inventories:

(i) Receiving these incoming materials in stores.

(ii) Checking and inspection of these incoming materials and stores etc.

(iii) Recording the incoming materials in goods received book.

(iv) Preparing and forwarding goods inwards note to purchasing section.

(v) Informing the purchase department about damaged and defective goods and surplus or deficit
supplies etc. along with rejection forms and notes.

(vi) Returning damaged or defective goods to the suppliers in accordance with the instructions of
the purchase department.

(vii) Forwarding the materials to respective stores and locations where these are to be stored or
preserved.

(b) Storage Section:

The store room should be located at a convenient and appropriate place. It should have ample
facilities to store the materials properly viz. bins, racks and shelves etc. There can be a single
store room in case of a small organisation, but a large scale concern can have different or
multiple stock rooms in addition to general or main store.

The separate stockrooms may be used for different classes of inventories. The material should be
stored in such a manner as to protect it against the risks of damage, destruction and any kind of
loss. Each article should have identifying marks viz., stamping, embossing, colour, coding and
painting etc. These risks are very useful in locating or identifying an article in the stores.

(c) Accounting Section:

This section is concerned with keeping proper records with regard to receipt and issue of
materials. The primary task of this section is to undertake the process of inventory control.

(d) Issue Section:

The materials should be issued to respective departments on receiving duly authorised requisition
slips. An entry should be made immediately on the bin card attached with the bin from where the
material has been issued.

Bin cards contain valuable information with regard to receipt and issue of materials, which is
greatly helpful in exercising a system of inventory control. These cards are further helpful in
determining various levels of materials viz., maximum, minimum, and re-ordering level.

Store Keeper’s Duties

In a manufacturing setting, stores or materials represent an equivalent amount of cash. For this
reason, there should be a well thought out system of storekeeping.

The storekeeping system should be designed to ensure the safe custody of materials, easy access
to items, economic usage of storage space, regular and efficient flow of materials, maintenance
of reliable stores records, and an efficient assessment of stock position.

For efficient storekeeping, a separate Stores Department under the direction of a storekeeper is
set up. The storekeeper is an individual of broad experience in the area of stores routines.

To carry out their duties, the storekeeper receives assistance from several staff members. The
storekeeper is responsible for the safe performance of his duties.

In addition, the storekeeper’s main duties and responsibilities are:

a. To issue requisitions on the purchase department to ensure materials are purchased in a
timely way.
b. To accept into stores any materials received from suppliers or returned by the production
department.
c. To check in all materials in terms of quality and quantity.
d. To hold all materials in a safe and convenient manner in appropriate bins and containers.
e. To issue materials against proper authorization.
f. To maintain records of receipts, issues and balance of materials.
g. To watch levels of stock and replenish materials when necessary.
h. To prevent the entry of unauthorized persons into the stores.
i. To advise management on the day-to-day affairs of the stores department.
j. To dispose of scrap or obsolete materials.

Location of Store
The place is known as location. So, a location of the store means the place where the store is
situated. While selecting the location of the store, purchase department must be careful in various
facts because the location of the store must be considered and the store should be divided into
racks which should be future sub- divided into small spaces. This space is known as a bin.
Here, location refers to the site for a particular store. The location of stores should be carefully
planned.

An important factor to consider when establishing a store setup is the question of where to locate
it for an optimal effect.

It is crucial to set up stores in a convenient and safe place near to the Receiving Department. It
should also be accessible from all parts of the factory and be free from the risk of fire, theft, and
other hazards.

The general principle used to determine the location of a Stores Department is to minimize the
total cost (i.e., in terms of kg/km) of transporting materials.

Factors to be considered for Selecting Location of Stores

a. It should be located at a central and safe place.
b. It must be located near to production department.
c. It must have enough space to keep the purchase materials.
d. It should be easily accessible to all the other department.
e. It must be equipped with enough bins and racks.
Determinants of the Location of Stores
The main factors that determine the location of stores in a manufacturing operation are outlined
as follows:

1. Minimization of Material Handling Efforts: The raw material store should be near the
production shops, and the finished goods and packing materials stores should be near the
assembly shop. The stores should be easily accessible by transport.

2. Nature of the Materials: The nature of the materials to be stored influences location.
Weather-resistant materials can be stored outdoors, while materials such as cement and plaster
must not only be protected from the weather but also be stored in a dry place.

3. Quantity, Weight, etc., of Materials: The quantity of each of the goods to be stored must be
considered to choose the location. When the quantities are known, adequate provision may be
made for immediate and future storage needs.

4. Flow of Materials: The location of stores should be convenient, enabling the steady and
regular flow of store items without obstruction.

5. Free from Risk of Loss: Stores must be set up in a safe location that is free from the risk of
loss due to fire, theft, moisture, and other hazards.

6. Flexibility: The location of stores must leave open the potential for future expansion.

Layout of Stores

The layout of stores refers to the physical arrangement of storage facilities or the internal
arrangement or placement of materials inside the stores.

Layout of stores aims at the effective utilization of available space for storage of materials. It
seeks to make the receipt and issue of stores convenient, improve the appearance of the stores,
and minimize the chance of damage, wastage, pilferage, and accidents.

When designing the layout of stores, another important aim is to reduce the operating cost of
storage. The layout of stores should be chosen based on the class and quantity of the materials to
be stored, as well as the general nature of the business.

Different materials should be separately stored, paying due attention to the viewpoints of space
economy, effective supervision, minimum wastage, and convenience. The materials should be
kept in bins, racks, shelves, drawers, drums, packages, and containers.

Factors to consider when catergorizing types of stores

Factors to Consider When Deciding Stores Layout

1. Similarity: Items of a similar nature should be stored in one place for the sake of convenience
and easy identification.
2. Popularity: The turnover of each item should be considered to enable fast-moving items to be
stored near the point of issue/usage.
3. Size of Item: Items that are large or bulky in nature should be stored near the point of use.
4. Nature of Materials: The nature of the materials to be stored is important in determining the
layout of stores. Hazardous, sensitive, and perishable goods should be stored separately in safe
places.
5. Physical Movement of Materials: Strictly adhere to the principle of ‘first in, first out’ in the
matter of physical movement of materials.
6. Physical Facilities: To create an efficient layout, it is important to consider physical facilities
such as lighting arrangements, ventilation, wall paint, availability of cranes, and other handling
equipment.

Storekeeper
A storekeeper is a person appointed for taking care of the store. He is in charge of the store and
responsible for the control of the store. Normally, all the big manufacturing concerns appoint a
storekeeper. He has an important role in storekeeper. The storekeeper must have some technical
knowledge and experience in store routine. Except this, he should be trained, honest, loyal and
responsible. He is also called store manager or store superintendent.

Duties and Responsibilities of Storekeeper

A storekeeper should be responsible for the following functions:
a. Avoiding damage and deterioration of goods
b. Providing security against loss, fire and accident
c. Performing checking function on work completed
d. Protecting against the consequences of non-availability of materials
e. Recording and receiving of materials in store
f. Classification and codification of items which is received by store
g. Prohibited unauthorized persons from entering the store
Store Keeping Procedure or Store Routine
After receiving materials by receiving or store keeping department, storekeeper has to perform
various jobs relating to materials. It is known as storekeeping procedures or store routine.
a. Classification and codification of Materials
b. Recording of Materials received
c. Issuing of Materials
Classification and Codification of Materials
Classification and codification of materials facilities prompt identification of the materials in
storage when they are being sent to production departments. All items in the stores should
properly be classified and codified. Goods and raw materials which are received by store must be
scientifically classified and coded.
Classification of Materials
As per the nature of materials facilities in various groups of goods, materials are classified to
make issuing, storing and identification materials easily and quickly. So, materials are first
classified on the basis of their nature and types. It may be defined as construction, materials
consumable store, spare parts, lubricating, etc.
Codification of Materials
After classification of materials in various groups, they are codified again. Coding means to give
numbers or distinctive symbols to specific materials of stores with an arrangement for a prompt
arrangement to facilitate storing. The symbol allotted to the materials known as ‘code’.
There are three methods of codification of materials:
1. Alphabetical: Alphabets are especially used for codification of each group of material. For
e.g. A, B, C…..
2. Numerical: Numbers are used for codification of each group of material. For e.g. 101,
102………
3. Alpha-Numeric: Both alphabets, as well as numeric, are used for codification of each group
of material. For e.g. A-101-102…..

Advantages of classification
Classifying the items that a business holds in its stores leads to many advantages. These include:

1. Helpful in grouping of stores items:

Classification helps to group different items in the store. Items that fall under a particular
category can be stored in one location, ensuring optimal use of storage space.

2. Easy location:
Proper classification of stores items helps in the easy identification of the various items
storekeepers can easily find materials whenever they are required in the production departments.

4. Proper accounting:
Record-keeping processes are easier when items are properly classified. Furthermore, simplified
record-keeping ensures accuracy in posting receipts and issues in the stores records.

4. Proper care:
By classifying items based on value, storekeepers can ascertain their relative importance.
Accordingly, a suitable degree of supervision and control can be exercised that is proportional to
the value of each item.

5. Avoidance of duplication:
Proper classification helps to avoid the possibility of duplicate stock items and materials.
6. Standardization:
Classification helps to standardize various items in the stores. Standardization involves variety
reduction using fixed sizes and types, leading to uniform standards for similar items.
Codification of materials
After classifying and grouping the various items in an organization’s stores, it is useful to codify
them.
Codification is the process of assigning a number of symbols to each store item, along with a
name, in order to make it easy and convenient to identify.
The codification of store items thus leads to time-saving and labour efficiencies.
Different kinds of store codes are used today. Most have been specially designed to suit the
requirements of a particular organization.
These codes may be based on the nature of stock items, the purpose for which the items are used,
or on any other basis that is viewed as suitable according to the local circumstances.
Also, the accurate identification of the materials may require a lengthy description. This can be
complicated and, hence, may add to the confusion.
Codification is necessary because it involves the assignment of logical and systematic numbers
or alphabets (or both) to help in the simple but accurate identification of the materials.
Advantages of codification
The main advantages of codification include:
Avoidance of long and unwieldy descriptions
Accurate and logical identification of items
Avoidance of duplication
Standardization of purchasing and storage
Reduction of variety
Effective planning and high-quality production
The use of codification also leads to efficiencies in the following areas:
a. Purchasing
b. Recording
c. Accounting
d. Computerizing pricing
e. Costing
f. Indexing
g. Inspection
Recording of materials received
After classification and costing of materials, the next step in store routine is recording of
materials received by store department. Following are the two system of material recording
received by store.
1. Bin Card
2. Store Ledger

1. Bin Card
The bin is the term used to symbolize the place or shelf or rack or pigeon-hole or even a big
room where materials are stored and the card attached to the bin or tag hung up there is known as
Bin card. Bin card shows quantitative details of receipt, issue and balance of materials in the bin.

This card also shows the maximum level, minimum level and re-order level of the materials. It
helps the storekeeper to control material. Bin card is used by the storekeeper to keep the only
quantitative record for all the items of materials in store. Remember that, it does not record the
value of materials.
2. Store Ledger
Store ledger is maintained by costing department. This ledger shows the information for the
pricing of materials issued and the money value at any time of each item of stores. Store ledger
contains an account for every item of stores and makes a record of the receipts, issue and the
balance, both in quantity and value. It contains the name, part number of the item and bin
number.

Store-Keeping: Meaning, Types, Objectives Functions and Working of the Stores

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BUYING STOCK
Stock
Meaning:
Stock is a store or supply. Stock is a store of goods ready for sale; inventory. A supply of
anything ready for use
Factors considered when buying stock
i) Quantity
Materials purchased should be of right quantity. The right quantity is the quantity that may be
purchased at a time with the minimum total cost and which obviates shortage of materials.
Ensuring and maintaining a regular flow of materials for carrying the production activity is the
vital aim of any purchase organisation. Excess purchases should be avoided, it results in
overstocking and capital is unnecessarily blocked and inventory carrying cost goes up.
For deciding the amount of right quantity to be purchased, certain important factors must be
considered by the management. These are the nature of the manufacturing process, the nature of
material to be used, prevailing market conditions i.e., changes in the tastes and preferences of the
people, cost of materials to be purchased, cost of possession and storing capacity of the
organisation.
ii) Quality
The term right quality refers to a suitability of an item for the purpose it is required. For
producing the goods of best quality, the best grade of raw material may be the right quality
whereas for producing items of medium quality, the average lowest grade may be the right
quality.
The quality of the item is called as grades. It can be measured by physical tests, chemical
analysis or by any other methods depending upon the nature of a product. The use of standard
specification, brand name or trade name helps in purchasing the squired qualities of materials.
‘The quality must be built into the product’. It is the duty of the purchasing department to ensure
that materials are purchased from those suppliers.

For creating goodwill, right production, standardisation, elimination of waste and for better
results, right quality purchases are very essential. Quality for different materials is decided by the
concerned departments.

iii) Transport
Refer to the fact that better transport facilities increase the supply of products. Transport is
always a constraint to the supply of products, as the products are not available on time due to
poor transport facilities. Therefore even if the price of a product increases, the supply would not
increase.

In Kenya sellers usually use road transport and the poorly maintained road makes it difficult to
reach the destination on time the products that are manufactured in one part of the city need to be
spread in the whole country through road transport This may result in the damage of most of the
products during the journey, which can cause heavy loss for a seller. In addition the seller can
also lose his/her customers because of the delay in. the delivery of products.

iv) Price
Act as one of the major determinant of supply. The inputs, such as raw material man, equipment,
and machines, required at the time of production are termed as factors. If the factors are available
in sufficient quantity and at lower price, then there would be increase in production.
This would increase the supply of a product in the market. For example, availability of cheap
labor and raw material nearby the manufacturing plant of an organization would help in reducing
the labor and transportation costs. Consequently, the production and supply of the product would
increase.

Refer to fact that the prices of substitutes and related or complementary goods also affect the
supply of a product. For example, if the price of wheat increases, then farmers would tend to
grow more wheat than nee. This would decrease the supply of rice in the market.

Sources of information
i) Catalogues

Electronic catalogues provide a user-friendly way of accessing information about a supplier’s

products and services. The chief benefit of using electronic catalogues is their low-cost search
capability; if users order directly from these catalogues, cycle times and ordering costs can also
be reduced. Pricing is often included as part of the catalogue and is referred to as a published
price list. Procuring organizations with higher buying volumes may be offered a percentage
discount on the rates from the published price list.

ii) History cards

A small plastic card that can be used as a method of payment at a particular store, with
the money being taken from you at a later date. This can be used to gather information on
materials.
iii) Price lists
Definition: List price, often called catalog price, is the full price that an item is advertised at
without taking into account any discounts or special offers. In other words, this is the amount of
money the business is willing to sell their products for.

Meaning:
When a company creates a print catalog or online store, it lists products with an assigned price.
The price printed in the catalogs and websites is called the list price. This price does not reflect
any trade discounts or sales. Instead, it’s the full price of the item.

iv) Trade fairs and exhibitions

A trade fair, also known as trade show, trade exhibition, or trade exposition, is an exhibition
organized so that companies in a specific industry can showcase and demonstrate their
latest products and services, meet with industry partners and customers, study activities of rivals,
and examine recent market trends and opportunities.
Exhibitions

An exhibition, in the most general sense, is an organized presentation and display of a selection
of items. In practice, exhibitions usually occur within a cultural or educational setting such as
a museum, art gallery, park, library, exhibition hall, or World's fairs. Exhibitions can include
many things such as art in both major museums and smaller galleries, interpretive exhibitions,
natural history museums and history museums, and also varieties such as more commercially
focused exhibitions and trade fairs.
Documents
i) requisition forms
Requisition forms, also referred to as purchase requests or PR, are internal documents used to
request the organisation to make a purchase. Put simply, the requestor will use a requisition form
to describe what the purchase is and why it’s necessary. After the form is submitted, it will be
sent to another person within the organisation, such as a department head, who’ll review the
purchase. If the purchase is denied, the approver will provide an explanation, and if it’s
approved, the purchase requisition form becomes a purchase order (PO) which is sent off to a
vendor.
ii) Purchase order
A purchase order is a commercial document and first official offer issued by a buyer to a seller,
indicating types, quantities, and agreed prices for products or services. It is used to control the
purchasing of products and services from external [Link] orders can be an essential
part of enterprise resource planning system orders.
Purchase orders allow buyers to clearly and openly communicate with the sellers to maintain
transparency. They may also help a purchasing agent to manage incoming orders and pending
orders. Sellers are also protected by the use of purchase orders, in case of a buyer's refusal to pay
for goods or services.
iii) Lender forms
A lender is a person, firm, or any other entity that lends money to people or businesses. In other
words, they are entities offering loans. The borrower repays the borrowed money and interest in
accordance with the loan repayment schedule. Therefore lender forms are forms that contain
such information.
iv) Suppliers invoices
Supplier invoices are the sales invoices and bills issued by supplying vendor and received by the
buying customer. Customers also refer to supplier invoices as vendor invoices.
A supplier invoice itemizes a transaction between the buyer and seller. If the seller extended credit
to the buyer for the sale, the invoice usually specifies payment terms and provides options for
payment methods.

Commonly, invoices are used to record monetary transactions between two parties. A supplier
invoice depicts money owed to the supplier in exchange for the goods supplied by him or
services rendered by him. Essentially, it is a bill of sale from the supplier’s point of view, placing
him in the accounts payable category. The unpaid goods or services that he supplies shall be
displayed in the invoice/bill. The invoice/bill shall contain the following particulars:-

a. Name, address and of the supplier

b. Invoice number
c. Date of issue of invoice
d. Code for goods/services
e. Name, address of the buyer (recipient)
f. Description of goods – Quantity, rate, value
g. Total amount payable (with the tax and cess break-up)
h. Signature of the supplier
Suppliers may also opt to instead send a month-end statement as an invoice for all outstanding
transactions. In this case, a company needs to clearly indicate that no subsequent invoices will be
sent.
In the past, invoices have been mostly recorded on paper with multiple copies generated so that the
buyer and seller each have a record of the transaction for their own records. Now, software
generated invoices are common and allow for easier searching and sorting of specific transactions
or specific dates.
v) Delivery notes
What is a delivery note?

It’s essentially a commercial document that accompanies a shipment of goods, it outlines the
description, and quantity of the good delivered. A copy of the document, which is to be signed by
the recipient, is then returned to the seller/provider as proof of delivery.

So why isn’t it the same as an invoice? It’s not to be confused with the invoice because it’s
actually a document that records a delivery of a service or good received by the buyer, it doesn’t
however record the payment of said service or goods. Another reason why, is that it’s not a legal
document, similarly though, when you produce a delivery note you must clearly state that is as
such, just like you must clearly state the word ‘invoice’ when a corresponding document has
been issued.

You must issue a delivery note when sending goods, and it can be accompanied by the invoice if
you choose. The recipient will receive it, sign it, and it will be returned to you as proof that they
have accepted the service or goods.
Alternatively, you can generate the invoice once the delivery note has been signed and returned,
it’s basically an indication that the customer is happy and is now liable to pay the amount due.
The document should also show:
1. the company details, including contact details in the event of a query
2. name and address of the company the goods are being delivered to
3. any product codes
4. date of issue of the document
5. date of delivery of goods.
vi) Packing notes
A packing note describes the contents of a consignment. Packing notes should not display prices.
The Purpose of Packing Notes
The simple definition of a packing note is a list identifying the description and quantities of
goods or merchandise that have been delivered to a customer. It is an important document in the
import / export trade.
vii) Consignment notes
A consignment note is a document regarding the carriage of goods by road which declares the
contract of carriage and includes the instructions given to the carrier and proves the contract of
carriage.
Consignment Note means the document containing all the particulars of the Goods issued by the
Carrier for the movement of the Consignment delivered to the Customer by the Carrier.
viii) Profoma invoices
A proforma invoice is a preliminary bill or estimated invoice which is used to request payment
from the committed buyer for goods or services before they are supplied. A proforma invoice
includes a description of the goods, the total payable amount and other details about the
transaction.
It is essentially a "good faith" agreement between you (the seller) and a customer so the buyer
knows what to expect ahead of time.
For example, if payment is required in advance to ensure financing is secured before you
manufacture goods or supply a service, a proforma can be used to propose the details of the
upcoming transaction.
ix) Purchase agreement documents
A purchase agreement is a legally binding contract between a purchaser and a seller. It is a legal
document that outlines the different terms and conditions that are related to the sale of goods.
Sometimes, purchase agreements are known as purchase and sale agreements.
Purchase agreements are usually used for the sale and purchase of goods and not services.
Agreements for services are usually known as “service agreements.”

What is Included in a Purchase Agreement?

A purchase agreement should include any and all information that is relevant to the transaction. A
well-written purchase agreement should include all details necessary to avoid any future
misunderstandings regarding any part of the transaction. A purchase agreement may include:
a. Information about the buyer and the seller including names, phone numbers, and addresses;
b. Contact information of any witness or co-singer;
c. The products or goods involved;
d. The type of sale;
e. The quantities and prices of the goods;
f. The agreement date;
g. The duration of the agreement;
h. The terms of shipping and delivery;
i. The dates for fulfillment of any conditions or requirements;
j. Whether or not the agreement can be amended or revised; and
k. Whether, in the event of a dispute, litigation is an option.
Purchase agreements are usually much more complex than an invoice or a purchase receipt, also
known as a bill of sale. Purchase agreements usually provide the requirements each party must
fulfill for the sale to be completed.
Buying Procedures and Techniques
Following buying or purchasing procedure is generally followed:

1. Determining Purchase Budget:

Purchase Manager prepares a purchase budget for the forthcoming financial year. Purchase
budget is prepared with the help of production planning department. It contains detailed
information regarding quantity to be purchased, quality of materials, time of purchase and the
sources of procurement. A schedule of materials and components needed for various jobs, known
as bill of materials, is also prescribed for working out details of purchase budget. A bill of
materials is also useful in exercising control over the utilization of materials.

2. Receipt of Purchase Requisition:

The purchase officer initiates action for the purchase of materials only when he receives a
request for the same. The store-keeper and departmental heads send requisition slips to purchase
department giving details of materials required by their departments etc. A purchase requisition is
a form used as a formal request to the purchasing department to purchase materials.

This form is prepared by the store keeper for regular stock materials and by the departmental
head for specific materials not stocked as regular items. The storekeeper knows when an action
or fresh procurements is to be initiated. He will send the requisition when materials reach re-
ordering level. He retains one copy of the requisition with him for future reference .It is on the
basis of purchase requisition that orders are placed for materials.

3. Determining Sources of Supply:

Purchase Manager remains in touch with various suppliers of materials. The quotations are
invited for the purchase of specific items. After receiving quotations a comparative study is made
regarding terms and conditions offered. The factors to be considered include price, quantity,
quality, time of delivery, terms of payment, trade discount and reputation of suppliers. After
looking at various factors a final decision is taken about the supplier of goods.

4. Placing Order:
After selecting a supplier a formal purchase order is sent for the supply of goods. A purchase
order is sent on a printed form and is duly authorized by the purchase manager. This order should
contain details about the quantity, quality, price, mode of delivery, terms of payment etc. The
purchase order authorizes the vendor to despatch goods specified in it. It establishes a contractual
relation between the buyer and the vendor.

5. Follow-Up of Purchase Order:

A purchase order normally bears a date by which the goods must be delivered It is in the interest
of the organization that goods are received in time for keeping uninterrupted flow of materials.
The suppliers may be reminded of the date of delivery of goods. A follow-up of purchase order is
necessary to receive stocks in time.

6. Receipt and Inspection of Materials:

In big concerns the task of receiving materials is assigned to the purchase department whereas in
small concerns this work is done by the store keeper. After unpacking goods their quantity is
compared to that given in delivery challans (an official form or receipt of acknowledgement or
other kind of proof document of crediting the money from one account to another through a
form etc). Any discrepancy in items is reported to the purchase department. The specifications
and quality of goods is also checked at this stage.

7. Checking Invoices:
Lastly, purchase department checks the invoices supplied by the vendor with that of its own
records. The quantity, quality, price, terms etc. are compared with those given in purchase order.
After making full checking the invoices are sent to accounts department for payment.

Buying techniques
Some of the techniques methods of buying or purchasing are discussed as follows:
1. Bulk Purchasing
2. Hand to Mouth Purchasing
3. Speculative Purchasing
4. Blanket Purchasing
5. Reciprocate Purchasing
Bulk Purchasing – Bulk Purchasing is the most economical form of purchasing. But at the same
time, it involves more capital investment of overstocking and high storage costs owing to likely
damages. Bulk purchasing is an ideal option for making large quantity of purchase for the future.
Hand to Mouth Purchasing – This purchasing is also widely known as Zero Stock Buying,
which means that there are no purchase transactions done until a demand arises, and accordingly
the purchase of quantities is decided. This method is mostly used in case of emergencies, or to
the goods used occasionally and not taken into stock. Further, using the method avoids any
blockage of capital investment in materials, carrying costs, obsolescence and wastage of
materials. However, the only drawback in this method is that there is fear of production halts due
to paucity of materials, or the materials then need to be procured at higher costs.
Speculative Purchasing – In cases when the manufacturers prefer to purchase materials in large
quantities than required in manufacturing process, it is planned such that the surplus can then be
sold off at higher prices for earning profits. Speculative purchasing is popular in cases of
extremely low prices when it is expected that these materials will fetch better prices in the
upcoming period. While one can benefit from speculative purchasing method that it can give you
huge speculative profits, it also blocks large amount of capital and you need large storage space
and as such, there are risks of obsolescence, etc.
Blanket Purchasing – The method involves ordering items of same group under one category;
the blanket purchase orders can be utilized for purchasing frequently purchasing items or
services, and have been designed such to effectuate the procurement processes.
Reciprocate Purchasing – In this form of purchasing, an arrangement is entered into between
two or more organizations that purchase each other’s goods and services.
Standardization of Products in Kenya
Meaning:
Standardization Activity of establishing, with regard to actual or potential problems, provisions
for common and repeated use, aimed at the achievement of the optimum degree of order in a
given context.
Product standardization is the process of maintaining uniformity and consistency among
the different iterations of a particular good or service that are available in different
markets. It is a framework of agreements to which all relevant parties in an industry or
organization must adhere to ensure that all processes associated with the creation are
performed within set guidelines, ensuring that the end product has consistent quality and any
conclusions made are comparable with all other equivalent items in the same class
i) Aims
Aims of Standardization of Products in Kenya
Note: Standardization may have one or more specific aims, to make a product, process or service
fit for its purpose. Such aims can be, but are not restricted to variety control, usability,
compatibility, interchangeability, health, safety, protection of the environment, product
protection, mutual understanding, economic performance, trade. They can be overlapping.
1. Fitness for purposes
Ability of a product, process or service to serve a defined purpose under specific conditions.
2. Compatibility
Suitability of products, processes or services for use together under specific conditions to fulfill
relevant requirements without causing unacceptable interactions.
4. Interchangeability
Ability of one product, process or service to be used in place of another to fulfill the same
requirements.
Note: The functional aspect of interchangeability is called “Functional interchangeability”, and
the dimensional aspect “dimensional interchangeability”.
5. Variety control
Selection of the optimum number of sizes or types of products, processes or services to meet
prevailing needs.
Note: Variety control is usually concerned with variety reduction.
6. Safety
Freedom from unacceptable risk of harm
Note: In standardization, the safety of products, processes and services is generally considered
with a view to achieving the optimum balance of a number of factors, including non-technical
factors such as human behaviour that will eliminate avoidable risks of harm to persons and goods
to an acceptable degree.
7. Protection of the environment
Preservation of the environment from unacceptable damage from the effects and operations of
products, processes and services.
8. Product protection
Environmental protection (deprecated)
Protection of a product against climatic or other adverse conditions during its use, transport or
storage.
ii) Bodies involved in standardization in Kenya
Below are a list of the key regulatory bodies in Kenya that regulate businesses in numerous
industries.

1. Business Registration Service

Business Registration Service (BRS) is a semi-autonomous body under the Office of the
Attorney General and Department of Justice in Kenya. It is mandated to oversee the operations
of the Companies Registry, Movable Property Security Rights Registry (Collateral Registry),
Insolvency (Official Receivers) Registry and the Hire Purchase Registry.

2. Kenya Investment Authority

Kenya Investment Authority (KenInvest) is one of the major regulatory bodies in Kenya
established with the main objective of promoting investments in Kenya. It promotes and
facilitates domestic and foreign investment in Kenya by advocating for a conducive investment
climate, providing accurate information and offering quality services for a prosperous Nation.

3. Central Bank Of Kenya (CBK)

The Central Bank of Kenya is responsible for formulating monetary policy to achieve and
maintain price stability. The Central Bank also promotes financial stability; an effective and
efficient payment, clearing and settlement system; formulates and implements foreign exchange
policies; holds and manages foreign exchange reserves; issuing of currency; and is the banker
for, adviser to and fiscal agent of the Government.

4. Kenya Revenue Authority (KRA)

The Kenya Revenue Authority (KRA) is the regulatory body in Kenya responsible for collecting
revenue on behalf of The Government of Kenya.

5. Communications Authority of Kenya (CA)

The Communications Authority of Kenya (CA) is a regulatory authority in Kenya that handles
the communications sector in Kenya. It is responsible for facilitating the development of the
information and communications sectors including; broadcasting, cyber security, multimedia,
telecommunications, electronic commerce, postal and courier services.

6. Kenya Airports Authority (KAA)

The Kenya Airports Authority (KAA) is a regulatory body in Kenya that provides facilitative
infrastructure for aviation services between Kenya and the outside world. Its main functions are:

7. National Social Security Fund (NSSF)

The National Social Security Fund (NSSF) is a Pension Scheme to which every Kenyan with an
income is required to contribute a percentage of his/her gross earnings so as to be guaranteed
basic compensation in case of permanent disability, basic assistance to needy defendants in case
of death and a monthly life pension upon retirement.

8. Kenya Civil Aviation Authority (KCAA)

Kenya Civil Aviation Authority (KCAA) is a regulatory authority in Kenya established to be a

body that oversees the regulation of Aviation Safety & Security; Economic regulation of Air
Services and development of Civil Aviation; Provision of Air Navigation Services, and Training
of Aviation personnel KCAA. The KCAA is mandated to plan, develop, manage, regulate and
operate a safe, economically sustainable and efficient civil aviation system in Kenya.
9. Export Promotion Council (EPC)

The Export Promotion Council (EPC) is Kenya’s premier institution in the development and
promotion of export trade. Its primary objective is to address issues that exporters and producers
of export goods and services face in the country, with a view to increasing the performance of the
export sector.

The EPC is mandated to co-ordinate and harmonize export development and promotion activities
in the country, providing leadership to all national export programmes.

10. Kenya National Highways Authority (KENHA)

The KeNHA is the statutory body in Kenya, responsible for the development, rehabilitation,
management and maintenance of all National Trunk Roads.

11. Kenya Bureau Of Standards (KEBS)

The Kenya Bureau of Standards (KEBS) is the premier government agency for the provision of
Standards, Metrology and Conformity Assessment (SMCA) services.

Types and terms of order and purchase agreements:

i) Standard purchase orders

ii) Petty cash purchase

iii) sundry and low value orders period

iv) Blanket and call-off orders

v) Open agreement

vi) Lending and rental agreements

RECEIVING AND INSPECTING STOCK

Steps take while awaiting the arrival of goods

Documents used in receipt and inspection of goods

Documents:

i) Delivery notes

ii) Goods received notes

iii) Advice notes

iv) Inspection notes

v) Discrepancy report forms

Quarantine:

i) Meaning and reasons

ii) Procedures

Care and security of incoming goods

Checking and inspecting procedures

Criteria for grouping goods

CODING AND CLASSIFYING STOCK

Meaning of coding items

Meaning of classifying items

Purpose of coding and classifying

Methods of coding: colours, numbers and letters

Specification of stock: reasons and methods of specifying stock

ARRANGING STOCK
Stores Layout: Basic Purpose/Principles of store layout

The "flow through principle"

Stock locating and stock indexing: type, size, frequency of use, job sequence, randoming,
location index, fixed and zonal location

ISSUING AND DESPATCHING STOCK

a) Characteristics of an efficient issuing system

b) Methods of issuing stock:

i) Issue note presented by hand

ii) Issue by post after receipt of issue note

iii) Issue after verbal request

Types of issues:

i) Scheduled issues to productions

ii) Impress issues

iii) Replacement issues

iv) Loan issues

v) Issue to employees on repaymnet

vi) Allocated issues

vii) Capital issues

viii) Transfer

Packing and despatching stock

Documents for issuing and despatching stock

STORES RECORDS

The importance of keeping goods stock records in a store

Documents used in stores:

i) Requisition forms and orders records

ii) Receipts and inspection records

iii) Storage records

iv) Stock taking and stock checking records

v) Supplier records

vi) Commodity records

v) Price records

vi) Stress accounting records

Systems of recording stock:

i) Manuals

ii) Electronics

iii) Mecahnical