Stores management can be simply defined as receiving, storing and issuing of materials. But, it is a key driver for operational efficiency as well as reduction in overhead cost.
Stores management involves a lot of paper work and hence improving its efficiency will help in reducing administrative expenses. Materials need to be properly accounted for and safe-guarded as it is equivalent to cash and some of them require special storage so as not to render them unusable. Efficient stores management helps in reducing losses due to obsolescence, pilferage, excess storing and thus reduce the cost of acquisition and retention of inventory.
Material codification enables accurate identification of materials ensuring faster receipt, storage and issue. It tremendously eases the effort on identification of slow-moving and non-moving material as well as SOS (surplus, obsolete and scrap) material.
Material codification helps in reducing duplication of materials and improves alternative selections increasing the purchasing efficiency and reducing inventory related costs. Logical and futuristic codification method ensures seamless integration with ERP systems.