Store Coding And Material Identification And Effect On Store Efficiency

(A case study of Nigeria Bottling Company (NBC))

Chapter I: Introduction

1.1            Background of the Study

Store code and material identification has witnessed great transformation in recent times due to technological advancement. Consequently, the risk of store personel have become far easier, more efficient, cost effective and all major operations are executed with high level of accuracy.

Store code and material identification is an aspect of store management that enjoys this transformation. The process of indexing, coding and sorting has improved significantly with computer system application across different purchasing organization. Materials brought into stores are immediately assigned system code and file names for easy identification. This is necessary to avoid problems of multiplicity of inappropriate or incorrect names assigned to materials.

Invariable, the vocabulary of identification and coding are separate concepts that are independent and mutually exclusive. Although, it is possible to have a good vocabulary in an organization not using a coding system. Identification of material successfully in inventory management is greatly aided by a logical system of classification covering all inventory items for the purpose of code.

Identification is the process of systematically defining and describing all items in store. The preparation and maintenance of store vocabulary is essentially or technically efficient. Vocabulary lies with the stores managers and his team who is responsible for the managing efficiency. Vocabulary includes the development of a technical for ensuring that words describing the articles or materials are sequence of importance. Whether or not a code system is at use, this technique should be employed. An efficient code system assists the store personnel in the controlling of the stock and easy identification of materials without wasting time. And vocabulary on the other hand is the transfer to writing of the things which has been recognized. Unfortunately, the users from the various functions department tend to draft the description according to their use of the items.

In this research work, an attempt is made to determine the harzards in preparing a vocabulary. Code or store catalogue and its effect on store efficiency of NBC Nigeria Plc.   

1.2            Statement of the Problem

Empirical research has shown that virtually all organization have problems of store code and material identification. In most public establishment, code is left in the hands of non-professionals or even at worst in the hands of school certificate holders. The selection and placement of these mediocre in such strategic functions account for the poor performance of those establishments. The problem of poor materials are roughly handled, misplaced middle and mixed up etc the principle of an item for a place and place for an item is made of mockery. 

Training and development in the store management area of an organization has always been flooded with professional and is considered as a dumping ground for unproductive personnel because of the notion that the store is nothing more than receiving and issuing section.

Management do not see code as an important aspect of storage and by so doing they feel without adequate and located with ease and so why should much money be spent on training staff, code and even buying computers to code the range of item held in the store. Since an unprofessional can identify each item in the store by its common names and this may lead to confusion and wrong identification of material which may in turn lead to delay.

1.3            Purpose of the Study

1.     To asses the level of importance (efficiency) of the store code system of coca-cola Plc.

2.     To identify the type of code in use by the organization.

3.     To identify the factors for successful development of an effective code system.

4.     To identify the demerit of coding system

5.     To identify the responsibility of stores management

1.4            Significance of the Study

This research project has both theoritical and practical significance in the following ways. First and foremost, it contains adequate literature on store code and material identification that relates to manufacturing company in general and coca-cola in particular. This broad based literature provide sufficient materials not only for general public but future researcher who may face the challenges of inadequate literature of store code and material identification in Nigeria.

In addition, the study generates further interest among future researchers as the challenges, dilemmas and contradictions within the store code and materials identification cannot resolved through a single research endeavor such as this.

The in-depth research on this topic has undoubtedly produced relevant field findings that have practical significance to the management of coca-cola. Beside the numerous challenges that thwort the company’s deal for an efficient store code and material identification and also a pre-requisite for the award of HND in purchasing and supply, Kaduna polytechnic Kaduna.

The study provides practicable recommendation aimed at further improving the current state of store code and material identification of coca-cola plc Kaduna.

Finally, the need for further studies is thus stimulated in this research projects.   

1.5            Research Question  

The following research question would like to be addressed in addition to the objectives.

1.     What are the criteria use in determing the efficiency of store management?

2.     What are the symbol used in code system in a store house?

3.     What are the advantages of code system as used in the store house?

4.     What are the demerit of code system?

5.     What are the responsibility of stores management?

1.6            Scope of the Study

The broad nature of purchasing and supply chain management with all its related terminologies and concepts, including stock verification, stock taking, stock checking, material identification and code require proper definition of research scope in order to understand the nature of the research and its findings. The research project is particularly focused on store code and material identification which constitute the cardinal aspect of stock control and administration of modern organization. The study is thus intended to scrutinize the nature and modus operandi of Nigeria Bottling Company Plc in store department of the company.

1.7            Definition of Terms

Ø Store – a place where items are kept and protected against unauthorized removal.

Ø Stocks – this is a term used to describe goods held in storehouse or store yard.

Ø Storage – keeping and protecting an item against unauthorized removal

Ø Scrap – waste produced as a by product component or wok in progress, which do not meet the required quality.

Ø Obsolescence – is a process by which an item is going out of use in an organization.

Ø Obsolete – this is when an item is no longer usable by the organization concern.

Ø Inspection – is a physical examination and counting of incoming and out-going goods to ascertain quality and quantity of material.

Ø Bia card – these are record cards attached to each item of the store

Ø Standardization –this means reducing the numbers of similar items held in stock to a desirable quantity.

Ø Stock yard -  is an open storage areas used for the storing of various goods/items

Ø Stock record – is the document which gives details of receipts issued and balances of the entire range of items held.

Ø Stock control – is an operation of continuously arranging receipts and issues.

Ø Stock taking – this is the counting of stock generally done at regular period and traditionally once in a year.

Ø Stock checking – is a physical check of quantity to ascertain the conditions of items kept either regularly or at interval.

Ø Maximum stock – a stock level selected ad the maximum desirable.

Ø Minimum stock – a stock level as the minimum desirable

Ø Overstocking – keeping stock above its maximum or normal requirement.

Ø Under stocking – keeping of stock below the minimum level.