1. Stores management Traditional focus on efficient stock holding
Recent focus on efficient stock movement because:
Reduce expenditure on storage and handling
Facilitated by computerised inventory systems and automation
Value-based supply chain concept - optimising customer service with minimal inventory investment and operating costs
Changes in manufacturing e.g. JIT
Development of logistics systems designed to integrate purchasing, transportation, inventory management and warehousing activities
The ‘Time Compression' concept
Formerly emphasis was on efficient holding of stock to meet customer requirements, avoid losses through wastage, deterioration, theft and obsolescence.
Current emphasis is on movement of stocks. Change due to following factors:
Remember our ice berg
Concept aimed at balancing conflicting goals of high customer service with low inventory investment and operating costs.
To provide most effective means of meeting internal and external customer requirements
Aims to reduce the time consumed by processes through elimination of non-value adding activities. Spending time doing something doesn’t necessarily add value. Reduce the time spent doing something = reduce the costs

2. Stores Management General Objectives
Most efficient use of space available
Rapid and easy access to stock
Efficient and balanced traffic flow
Mechanisation and automation are appropriate
Minimal travel distance for stock
Minimal number of handling occasions
Positive location and identification of stock
Appropriate product grouping relating to similar storage characteristics and issue frequency
Maximum protection and security
Regular review of stock and processes to ensure the objectives are continually met
for inputs, outputs and verification (stock checking)
My example
Reduce handling = reduce costs (Unichem pick face example) – reduce handling / reduce error potential
clearly identifiable locations, the stock is always there – binno’s for every product, ABC or random?
E.g. fridge, flamms, top 50
E.g. Unichem visual appearance inspection – stock check recurrent discrepancies

3. Do you believe your store meets these objectives satisfactorily
Do you believe your store meets these objectives satisfactorily? Which objectives are most problematic? Which objectives are met well?
PROBLEMATIC
Number of handling occasions
Positive location and identification of stock
Appropriate product grouping according to issue frequency
WELL
Protection – Hanwell
Security - Legislation

4. Stores Management Concepts
Pareto and ABC analysis
Cube Principle
Goods Movement Theory
Stores design & workflow
Identification & allocation of storage locations
Constraints Theory
PARETO and ABC
Remember Kevan
Identify quick turnover items or slow moving stock
Quick turnover – store to allow regular and easy access
Slow movers – remote locations
CUBE PRINCIPLE
Focuses on use of all available space
More space used – more specialist equipment required
e.g. high rise racking, narrow aisle fork lifts
Consider equipment costs v utilisation of space
Baxter’s equipment & space utilisation essential. Us, would we use equipment often enough to justify cost?
GOODS MOVEMENT THEORY
Movement adds cost without adding value and introduces error potential
To lower total acquisition costs – eliminate unnecessary movements, inefficient handling
Move goods as little as possible – single stock locations, direct delivery to end user
STORAGE LOCATIONS
Alphabetical for easier manual identification
Computerised for most efficient usage (robot)
Fixed so always in the same place
Flexible for most effective storage
CONSTRAINTS THEORY
Identification of bottlenecks within processes
Analyse constraints to determine where to allocate resources

5. Number of possible lay-outs most common being U-flow and through-flow
Explain diagram
MHRA prefers through flow (particularly in manufacturing)
Raw materials and finished products arrive and depart from different areas in the store.
Most important objective is reduce time taken to pick stock.
i.e. High turnover items easily accessed (close to hand)
Travelling distance for staff minimised

6. Identify the constraints in your organisation. How are they managed?
Loading robot
Delivery peaks and troughs in goods-in (e.g. Tesco v us)
Boxing day – lots of picking staff waiting for top-up staff to complete orders

7. Automation Advantages Space – small footprint Speed accuracy
Disadvantages
Cost
Power or system failure
Correctly titled as AUTOMATED STORAGE, HANDLING AND RETRIEVAL SYSTEMS
Robots, A-frames, automated stacking cranes
Constraints need to be clearly identified before investment
Will expensive automation resolve
What will be the impact on processes? (Dispensary example)
ADVANTAGES
Space. Smaller footprint required than for manual processes but beware capacity
Speed
Accuracy
DISADVANTAGES
Cost
Power or system failure. Goods difficult to retrieve in event of breakdown. Anyone been in?
What other options are available for you to embrace automation?
Ward order assembly