Effective Store System - Going

In the performance of these duties an effective stores system should accomplish at least four things :

First. It should prevent over-investment and unbalanced accumulation. Of course, an extraordinary purchase to secure advantage of special market conditions, although leading to a temporary over-investment or overbalance of some item of stores, might yet be very wise.

This is an obvious exception which common-sense would suggest.

Second. It should give automatic warning of approach to a minimum on any item, so that the danger may be averted by filling up the low points.

Third. It should provide effective means for getting the material through the factory rapidly and without delays, even up to the final delivery of the finished stock.

Fourth. It should furnish records of every delivery, so that each order can be traced and identified with the job and with the workmen, and so that every part or piece may be accounted for and a continuous inventory of stock on hand may be obtainable.

It is apparent that these requirements connect the stores department very closely with the purchasing department on the one side, with the cost department throughout, and with the shipping department on the other side. Under able and energetic administration, indeed, it may be made (and in some modern institutions it is being made) not simply a bureau of custody and record, but a leader and a driver of

the manufacturing superintendents and the operating officers. Even though it have no executive authority over manufactures, it can and it should disclose delays, inefficiencies, irregularities, and extravagances and bring them to the attention of the executives for correction.

So much for the functions of the stores department.

Going 1911