Role Of Effective Store Management In Business Organization

1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
There is need for every business organization to purchase raw materials as at when due for this to be possible, the stores should be effectively managed.
This brings us to case study, Nigerian Breweries (Ann .O, 203) defined stores management as the planning, controlling, organizing and leading the work of stores staff and utilizing the available stores resources to attain stores objectives. Fearon (1973) in view manager said that stores management is the single manager organization, motivating and controlling of all those objectives and personal principally concerned with the flow of materials into an organization, distribution, maintenance, packaging etc are received by the stores and issued to other departments of a company.
The stores function is defined as having the responsibility of receipt, custody and distribution of every large sum of money in the form of stocks and for the determination of appropriate qualities of materials to be held in order or manner as possible from the foregoing one is able to understand that main function of stores department is to hold stock.
However, stores management foes further in scope and operation than just aspect mentioned, store management is a function of the overall purchasing and stores operation and quite specializes. The main purpose of stores management is to provide a service to all other department and to go about it efficiently in order to provide. Stores management is therefore concerned especially with the physical aspect of material storage and distribution.
The primary reason for the existence of store inventory is to ensure the availability of materials necessary to keep production moving. These material life blood of any industrial or distribution concern and should be made available at the proper place, at the proper time, from the proper sources at the right price. Therefore, if there conditions are not obtainable, they are likely to face higher cost such as:
a. Acquisition cost: Which are incurred in obtaining supplier, they include transportation, inspection, packaging, clerical cost of preparing the order etc.
b. Holding cost: They are cost incurred as items are held in the stores, like stock checking, obsolesce, insurance recording and accounting etc.
c. Stock out cost: Cost incurred when organization run out of stock. They include loss of production output idle time of machines, loss of customer patronage etc. hence store management can be synonymous with efficient and effective stock holding to make for efficient production.
Store management is an umbrella under which a lot of activities come. These activities makes it possible for the provision of efficient service to the organization and they are: holding, controlling and issuing as stock. Quality control activities materials handling function training store staff clerical/administration of stores work. Control of warehouse. Stock yard and outside storage unit meanwhile, stores management is the planning, controlling organization and reading the work of stores staff and of utilizing the available stores resources to attain store objectives.

1.1 PROFILE OF THE COMPANY OF CASE STUDY
The store management in Nigerian Breweries Plc is said to be very efficient because almost all the stocks operation are carried out effectively but if it is said by the process manager there is shortage of materials as a result of level, through for some past moving stocks.
The organization before now and experienced over stocking of items due to the neglect of stock control, manager which had led to the company to deterioration of goods, redundancy and obsolescence, but the stock control manager to ensure that goods are ordered and delivered at maximum price or cost as now practicing stock control. Therefore, on the job course are organized for the stock keepers, the officers to ensure effective management induction is also organized after employment of workers to learn how to carryout their job effectively.
In Nigeria Breweries Plc, Aba it is believed that employment of professionally qualified personnel are very necessary and through either on the job courses they will learn and have the experience of how to carry out their duties effectively. Also their qualification really matter on the placement of their place of work.
Stocking is done to ensure the existence and to correct errors in the entries on stock record. The stock verifier has if as his responsibility to audit the condition of every item of materials existing in the business either periodically or perpetually. This is one to detect any facet in the materials management by enresagating and discrepancy between stock keeping and stock control.
In Nigerian Breweries Plc Aba all the executive or operation of the store are practical effectively. Before goods are supplied favourable negotiation is done specification is carried out to remove between the supplies and the purchasing manager is Nigeria Breweries even when received, inspection is done by the inspection to ensure that what was ordered for has been supplied.
Material handling is practiced effectively to breakages within the stores, it is the duty of the store controller in Nigeria Breweries Plc Aba to adopt adequate measures to prevent future occurrences as careless handling of items which can lead to high product cost.
Nigerian Breweries Plc, Aba has been carrying out the stores activities so effectively that they always arrive at profit maximization. There are conducive environment to ensure effective operation.

1.2 STATEMENT OF THE PROBLEM
Given the adverse effect brought by the current economic condition via-material security, obsolescence and redundancy/deteriorates (folding up the industries) one feels concerned and motivated to investigate in the stores function and based in the outcome present better option for improvement and efficiency in our industries and public organization.
This study the role of effective stores management in business organization a case study of Nigerian Breweries Plc, Aba to discuss the following reasons for the following:
1. A lot of items in warehouse/shop become obsolete and deteriorated and are written off.
2. Materials are not keep in the hand or case of professionally qualified personnel.
3. A lot of items is the warehouse are not given adequate legal production.
4. The method of communication in the stores department is not encouraging.
5. The problem of shortage of goods in stock
6. The problem of wrong posting of transaction by the inventory of check.

1.3 OBJECTIVE OF THE STUDY
Over the years the store managers function has advances greatly as a result of the scope and seriousness of the research that has been carried out on the application of techniques in that failed subsequently, a body of knowledge of the principle has evolved. Been developed and received in line with current development or for more efficient development in performance. This research or therefore has the objective of highlighting the neglected but important benefits of product stores management and the contribution it can make the revamping of our national economy especially the research has the following objectives:
1. To determine the efficiency and effectiveness degree of the stores management function in Nigerian Breweries Plc, Aba.
2. To determine through the analysis, the degree of its impact on the organization.
3. If the stores fall short in standard of work provided to determine whether education, professional qualification of stores staff in the case.
4. To determine the degree of interference (if any) by top management on the operation of stores.

1.4 RESEARCH QUESTION
From the above named objective, the following question are for the purpose of research.
1. Does proper stores management contribute to the profit of a business organization?
2. Does the employment of professional qualified store keeper and manager contribute to the efficiency of store work?

1.5 RESEARCH HYPOTHESIS
This means are idea or explanation of something that is based on a few known facts but that has not yet seen provide tit be time or correct.
Therefore, the hypothesis t o be tested in this study is:
Ho: Store should not efficient and economically managed.
HI: Store are essential business resources and as such should not be efficiently and economically managed.
Ho: There are no merits derivable from efficient stores management.
HI: There are merits derivable from efficient store management
Ho: Efficient and effective stores management does not enhanced the operation of a business concerns.
HI: Efficient and effective stores management enhances the operation of a business concerns.

1.6 SIGNIFICANCE OF THE STUDY
It is objective of every production business management to apply and control funds profitably, and this profitability of the organization starts with the creation of stable materials, which can meet and absorb all the demand of the organization product system. It is therefore the brief of the researcher gather from this study will go a long way to manager to the fact that with strict adherence to the principles and techniques of stores management lot wastages (obsolesce, deterioration, redundancy etc) of material will be avoided or reduced to the barest minimum therefore creating an avenue for profitability.

GIGO
Is a common term in the field of computer programming, and it means garbage in garbage out. In other words, what you give is what you get back. The reason are of the study will portray the importance of employing qualified personnel. This research will help firm to know how bets to manage their stock. Aiding them to realize that business success it not magic, people can walk for failure as well as success.
Meanwhile, the pivot is proper handling of product in stores. Research in the area will see this work as an invaluable aid. To crown it all, this study will review those method used by Nigeria Breweries Plc, Aba to reach the predetermined corporate objectives as well as educating other organization that may wish to employ similar methods.

1.7 SCOPE OF STUDY
This study is designed to give insight into ways of solving a national problem, the problem of materials management. Business organization abound in Nigeria and for the researcher to study all of them will be impossible within the time given, and have decided to use Nigerian Breweries Plc Aba as a case study so as to carryout in-dept study of the organization. This study will be carried out on the branch of Nigerian Breweries here in Aba, using their workers as respondents. The researcher intends to find out the system of operation of the Nigerian Breweries Stores and compare it with professional standard, so as to detect deviations and recommend correction measures accordingly.

1.8 LIMITATION THE STUDY
The researcher in the course of carrying out this researcher had to contact with some factor, which militated in or way or the other against that enthusiasm and zeal posed, they include:
TIME:
Owing to the fact that the researcher is still a student and have a lot of academic work to contend with and as the project work has been given specific period in the researchers class time table the research area of coverage so as to fall within the little time available another content here that this study has to be carried out and completed between the months of September and October, 2015.
FINANCE:
When one looks at the ugly picture painted of Nigerian economic state, the researcher being a student who still received pocket money from home. Not to mention the rate of which the naira keep losing value an cost of research materials which were also too exorbitant to be boom by the researcher movement to and fro the research area as the distance was not trek-able.
NO RESPONSE:
This was the greatest limiting factor to the study, as a matter of fact, some of the respondents are not showing positive reactions to the question, many of the respondents declined to give the needed information terming them classified. This is to a very extent hindered the researcher access to some data in the organization.
PLACE:
This also contributes in hindering the activities of carrying out the research work. As a matter of fact it can hinder or initiate the researcher’s view of getting what he needed for work. Sometimes, the store management is located at the wring place, it can also be attached to other department where they limit the researcher from achieving his goals. Take for instance when store management is left into the hand of accounting or purchasing department you will see that it will be very difficult for the purchasing department or accounting manager to give the researcher the accurate information needed.
STAFF:
The kind of people employed as staff or store management also hinders or limit the study. This implies that many of the staff employed in the stores department are not well experienced in things concerning store management. Therefore, when the researcher went to them, it will be hard for him to get the necessary information.

1.8 DEFINITION OF TERMS
Purchasing: Is activity towards seeming by legal means the materials, supplies and equipment required in the operation of enterprises.
Inventory: All of the material, port suppliers, expensive tools and in process on the boom by an organization and kept its storeroom, warehouse and plants.
Quality: The characteristic to satisfy the intended need at the most reasonable cost.
Stock control: This is the process of continuously gong flow by material so that stock balances are adequate to support the current rate of consumption with due regard to encourage economy.
Shop: A unit of an organization where the production process takes place.
Stock taking: Verifying physically, the quantity balances of the entire range of item held in stock.
Redundancy: Situation where the quantity of the items in stock is more than it is reasonably necessary to produce activity the excess over normal is said to be redundant.
Obsolescence: A situation where an item in stock are going out of use, but not completely unstable as a result of development of new design or charged in production plans.
Obsolete: An item is obsolete when it is no longer in stable by the organization concerned because of a change in operational practice or production method.
Identification: This direct process of systematically defining and describing all item in stock.
Receipt: This is the process of accepting from all sources, all authorized deliveries makes to the organization.
Specification: The description of an item, starting its dimension, analysis performance, or other relevant characteristics sufficient detain to ensure that is will be suitable in all respite for the purpose for which it is intended.
Standardization: A specification contended for recurrent use, standardization differ from specification in that while every standard is a specification, not every specification is a standard.
Provision: The process of determining in advance requirement of material considering existing stocks, delivery times and rate of consumption so that the amount of stock is had anytime will be in accordance with the stock control policy.