The function of "stores," as the name implies, is storage, receiving, protecting, and keeping products within a contained environment. In any professionally managed store, the receiving incoming products is called the receiving bay and the process of keeping them safe and stored for as long as needed is known as ...
The function of "stores," as the name implies, is storage, receiving, protecting, and keeping products within a contained environment. In any professionally managed store, the receiving incoming products is called the receiving bay and the process of keeping them safe and stored for as long as needed is known as custody. Any movement of the product outside of the contained storage is called the issue. All manufacturers that operate legally and with a degree of organization will constantly refer to these three processes, understanding that they operate like a cycle that keeps the stores active.
This being said, receiving, custody, and issuing, are the main activities to measure when it comes to determining whether the store is actually efficient or not.
The best measurement tool to determine whether the processes of receiving, custody, and issue are being properly followed is inventory control.
Inventory control, or inventory management, takes into account every single thing ever received at the store. It keeps records of everything incoming, stored, and outgoing. This is done to control the amount of things coming in and out, and also to provide documentation of when it was received, how long it remained in custody, and when (and how) it was issued. This is proper accounting and auditing at its best. It protects everyone, too, as every product is accounted for and in place. If inventory control were not to be conducted, imagine what would happen: any product could be taken from the store without precedence, and there would be a mayhem in keeping track of what is available and in what quantity.
Therefore, efficiency is measured through record keeping in the form of inventory control. It is no difference than what we do with things we are taking care of and need to protect. We list them down, and whatever movement that product does needs to be documented. Any issuing, or any change in placement, goes down on record. This is not only effective and efficient, but it also keeps the store protected from any accusation that products are being misused or mishandled.