ABSTRACT
This study assessed the role of effective store management in an organizational growth and development”, A case study of Nigerian Bottling Company, Coca Cola, Aba Depot The study adopted the survey research method while the convenience sampling size of fifity respondents. Instrument of the study was a self-developed questionnaire which was personally administered by the researcher. Data was analyzed with the used of descriptive statistics which involved the use of sampling percentages and frequency tables. Findings of the study revealed that the nature of relationship between store management and organizational effectiveness are that; It enhances uninterrupted flow of production, It takes care of variation in production demand. The store management make storage and retrieval of materials easier by, facilitating storage of materials and ensuring retrieval of materials. Based on the findings, it was recommended that there should be competent expert appointed as store managers. This will reduce the incidence of poor store management and there should be proper coordination and cooperation between the various departments, stores department, receiving and inspecting Departments etc.
TABLE OF CONTENTS
Title page – – – – – – – i
Approval page – – – – – – – ii
Certification – – – – – – – iii
Dedication – – – – – – – iv
Acknowledgement – – – – – – V-vi
Abstract – – – – – – – – vii
List of tables – – – – – – – viii
Table of contents – – – – – – ix-xii
CHAPTER ONE
INTRODUCTION
1.1 Background of the study – – – 1-3
1.2 Statement of the problem – – – – 4
1.3 Objectives of the study – – – – 5
1.4 Research questions – – – – – 5-6
1.5 Significance of the study – – – – 6-7
1.6 Scope of the study – – – – – 7
1.7 Limitations of the study – – – – 7-8
1.8 Organization of the study – – – – 8
1.9 Definition of terms – – – – – 9
CHAPTER TWO
REVIEW OF RELATED LITERATURE PREAMBLE
PREAMBLE
2.1 The Concept of Store Management – – – 10-14
2.2 Stores Building and Stores Lay Out – – – 14-17
2.3 The Stores Function and Its Interrelationships with
Other Functional Departments – – – – 18-20
2.4 Duties and Responsibilities of Stores Personnel – 20-23
2.5 Need for Proper Store Management – – – 24-26
Challenges of Effective Store Management – – 26-28
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
PREAMBLE
3.1 Research design – – – – – – 29
3.2 Population of the study – – – – 29
3.3 Sample and sampling techniques – – – 29-30
3.4 Instrumentation – – – – – – 30-31
3.5 Method of data analysis – – – – 31
3.6 Problems of data collection – – – – 31-32
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS/INTERPRETATION PREAMBLE
4.1 Analysis of Research Questions
4.1.1 Analysis of Research Questions One – – 33-35
4.1.2 Analysis of Research Questions Two – – 35-37
4.1.3 Analysis of Research Questions Three – – 37-38
4.1.4 Analysis of Research Questions Four – – 38-40
4.2 Discussion of Findings – – – – 40-41
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
PREAMBLE
5.1 Summary of findings – – – – – 42-43
5.2 Conclusion – – – – – – – 43-44
5.3 Recommendations – – – – – 44-45
References
Appendixes
LIST OF TABLES
Table 3.1: Sample selection – – – – 30
Table4.1.1: Responses to Research Question
one – – – – – – 34
Table 4.1.2: Responses to research question
two – – – – – – 36
Table 4.1.3: Responses to research question
three – – – – – 37
Table 4.1.4: Responses to research question four – – – – – – 39
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Stores management involves the coordinating of materials availability, controlling, utilization and procuring of materials. Stores management is the direction of activities with the purpose of getting the right inventory in the right place at the right time and in the right quantity and it’s directly linked to production function of any organization which implies that the stores management system operated will affect the profitability of an organization directly and indirectly (Alm, 2000).
Stores management also involves the stock of raw materials, work in progress, finished goods and supplies held by a business organization to facilitate operations in the production process. Also if the company fails to manage its inventory (Store) efficiently, it is likely to face profitability problems. The goal of stores management therefore is to provide the inventories required to sustain operations at minimum costs (Dickerson 1995). Stores management helps organization to establish the proper inventory levels through the economic order quantity; and to keep track of this level through inventory control system which many be manual such as two bin method and red line method, or computerized inventory control systems. Proper store management also requires an organization to undertake stocking and use appropriate method to value stock so as not to under or over state profits (Kotabo, 2002).
Companies incur substantial costs in the procurement and maintenance of inventories, which costs form a large portion of production costs. Inventory costs include: carrying costs such as storage and insurance; ordering costs like transporting and store placement; and stock out costs like redundancy and loss of sales. A company cannot achieve an outstanding performance without proper and efficient control of materials. Materials are as much as cash itself and any theft, wastage and excessive use of materials are of immediate financial loss and leads to poor performance of a company (Kotabo, 2002).
Laugero, (2002) noted that Material control involved a systematic control and regulation of purchase, storage and usage of materials in such a way to maintain an even flow. In recent years, the manufacturing industry has been facing a number of challenges especially in store management or material control, thus affecting the performance of most manufacturing companies. There have been cases of materials overstocking which eventually get expired or out dated, under stocking lack of stock-taking theft of materials by workers and delays in deliveries of materials at the sites, among others.
Stores management can be done through introduction of different measures so as to prevent the company from incurring unnecessary losses made by different departments. Measures which can be put in place for example stock-taking which is the accounting of stock at every end of the month, so as to record the lost and available stock. The company should set up strict rules to procurement officers and store managers which they should follow during purchasing and storing of material so as to avoid loss of inventory in the company.
1.2 Statement of the Problem
Problems of store management and layout have been around for a very long time. The need to collect food when it is readily available and then store it for times of shortage is perhaps the fundamental stock holding problem, which was tackled long ago by man. Nowadays, we usually think of stocks being held by organizations to allow efficient and continuous operations. Managers are aware of the vital roles proper store management plays in the activities of organizations. In most organizations, direct materials represent up to 50% of the total product cost, as a result of the money entrusted on inventory, thereby affecting the profitability of the organization. Organizations at times do not control their inventory holding, resulting in under stocking and causing the organizations to stay off production, thereby resulting to organizational ineffectiveness. This therefore creates relationship problems between store management and organizational productivity, profitability and effectiveness. This study therefore seeks to assess the role of effective store management in an organizational growth and development.
1.3 Objectives of the Study
The broad objective of this study is to assess the role of effective store management in an organizational growth and development, while the specific objectives are:-
To examine the nature of relationship between store management and organizational effectiveness.
To ascertain the extent at which store management has made storage and retrieval of material easier.
To determine the effect of store management on organizational productivity.
To evaluate the nature of correlation between store management and organizational profitability.
1.4 Research Questions
The following questions will guide the study;
What is the nature of relationship between store management and organizational effectiveness?
To what extent has store management made storage and retrieval of material easier?
What is the effect of store management on organizational productivity?
To what extent does store management correlate with organizational profitability?
1.5 Significance of the Study
The research is believed to have the following significances.
The study will show the overall store management system of the manufacturing firms, and it will also suggest solutions to the problem related with store management function. It will enable employees and store managers evaluate themselves and indicate the strengths and weakness of the firm’s store management practice.
Furthermore, the study will serve as guide to student researchers who may wish to explore more on this or related topics.
