stores management on organizational performance
Stores refers to an organization as an area within the company in which all kinds of materials needed for production, distribution, maintenance, packaging etc. are kept received and issue (Carter and Price, 1993). While management refers to the function that coordinates the efforts of people to accomplish the goals and objectives by using available resources efficiently and effectively. This includes planning, organizing, staffing leading or directing and controlling an organization to accomplish the goal or target (Wikipedia).
According to Emmett et al (2005) stores management make sense if the following contributions is provided: to make available balance flow of materials, tools, equipment and stationary necessary to meet operational requirement; To provide maintenance materials, spare parts and general stock that is required; To accept and store scrap and other discarded materials as it arises; To account for all receipts; To issue goods in bulk and break bulks.
Store management involves the planning, control of issues of stores (Kortz2003). The objective of store management is to efficiently and economically provide the right materials at the time when it is required and in the condition in which it is required (Ogbo & Onekanma, 2014). A professionally managed store has a process and a space within, to receive the incoming materials (Receiving Bay), keep them for as long as they are not required for use (Custody) and then to move them out of stores for use (Miller, 2010).In a manufacturing firm this process forms a cycle to maintain and run the activities of Stores (Kortz2003).
The role of the store manager hence is to receive the goods and act as a caretaker of the materials and issue them as and when Production demands it. Needless to say store management activity does not add any value to the product but may be costly if poorly managed which may impact on organization performance interms of profits, market share (Schonsleben, 2000). The organization has to spend money on space that is to say expenditure on land, building and roads, equipment, machinery and other facilities provided such as electricity, people (salaries and wages), insurance, maintenance costs, stationary, communication expenses and the cost to maintain the inventory among others(Ogbo & Onekanma, 2014). All of these get added to the organizational overheads and finally get reflected in the costing of the finished product.
According to Richard et al. (2009), organizational performance encompasses three main areas: financial performance, product market share, and shareholder return. Financial performance focuses on profits, returns on assets, and return on investment, while shareholder return includes total shareholder return and economic value added. Organizational performance is defined as the actual output or results of an organization measured against its goals and objectives (Jabareen, 2009). It involves minimizing costs and maximizing revenue (Konke, 2003). Organizations that fail to improve performance risk losing their competitive advantage. Performance can be enhanced by increasing output with constant input, increasing output with a slower input growth, maintaining output while reducing input, or reducing both output and input but at different rates (Needharm & Dransfield, 1995).
Store management, according to Kortz (2003), involves the planning and control of store operations. Its objective is to provide the right materials at the right time and in the right condition, efficiently and economically (Ogbo & Onekanma, 2014). A well-managed store includes processes and spaces for receiving, storing, and issuing materials (Miller, 2010). In manufacturing firms, this process creates a cycle to maintain store operations (Kortz, 2003).
The role of the store manager is to oversee goods and issue them as needed by production. Although store management does not directly add value to the product, poor management can increase costs, impacting organizational performance in terms of profits and market share (Schonsleben, 2000). Store-related expenses include land, buildings, equipment, salaries, insurance, maintenance, and inventory costs, which all contribute to the organization’s overhead and ultimately influence the cost of the final product (Ogbo & Onekanma, 2014).
stores management on organizational performance
At Sadoline Paints Limited, effective cost management and control are prioritized. The company’s store management is essential, as it spends considerable resources ensuring that critical stock levels are maintained for operations. The stores provide safe custody of materials and goods, with proper stock control systems and measures to prevent abuse, theft, and unauthorized disposal (Ayad, 2011). This has contributed to the company’s improved performance, including high profits and increased market share (Mulondo, 2010). Therefore, this study assesses the impact of store management on organizational performance, using Sadoline Paints Limited as a case study.
