CHAPTER ONE
1.0 BACKGROUND OF THE STUDY
1.1 INTRODUCTION
Human being cannot live without the
heart pumping blood all over the body. The same is to a producing firm it cannot
perform without the existence of store. Therefore, the store is regarded as the
pumping organ of a production firm as well as the bedrock of a producing
organization and other department that exist under the organization.
The word “STORE” connotes a place where
materials that are not consumed immediately are kept for future consumption or
used. While “STRATEGIES” means procedure in planning and directing of the whole
operation in the campaign or policies, hence store with material management
1.2 STATEMENT OF THE PROBLEM
The vitamalt plc, which specialize in
the manufacturing of vitamalt drinks. Due to the increasing demand of quality
soft drinks by individuals and co-operate bodies which leads to the expansion
of the present lines were embarked upon to increase the output. Therefore, the
increase in the purchase of raw material and modern machinery made provision
for the extension of store system into sub-store to meet demand from different
production lines. In most cases, the vitamalt plc run out of stock because of
some raw materials for production.
It’s noted that about 45% of the company
raw materials are imported while 55% are produced locally. The sources of the
locally raw materials are not reliable. Most of the items they produce are less
quality and sub-standard materials.
Meanwhile, the root of all these
problems can be trace down to inability of the store and purchasing department
to strategies effective store management. In vitamalt plc store is that the
organization operate partial centralized store department, the consequences of
this method are as follows:
1. It
imposes high cost of acquisition of stock to the central store. And it brings
up delay in the production department.
2. Some
of the staffs are not competent of the store work due to lack of training and
development in store management.
3. The
problem of improper handling and inspection caused by the stock items.
4. High
rate of illiteracy among store workers. Most of the workers do not know about
the work “STORE” connotes and the value of the organization.
5. Pilferage
caused by the store workers, most of the store worker steals those items, kept with
them in the store because stock is done regularly in the organization.
6. Office policies and struggle among the
store staff.
7. Poor
communication and report writing skill among store staff to carry out the day
to day running of the store.
8. Ineffective
decision making among the store manager.
1.3 OBJECTIVES OF THE STUDY
Objectives of the research projects are:
–
To strategies the
effective way of controlling store management department.
–
To ensure better
relationship between the store and other departments.
–
To restructure the
vitamalt plc store department.
–
To ensure the best and
accurate way accountability of goods and service in the store department.
–
To initiate better
budgeting control system.
–
To introduce and
install better control system
–
To eliminate or reduce
fraud in the store department.
1.4 SIGNIFICANCE OF THE STUDY
The importance of strategies for
effective store management in producing organization cannot be over emphasized.
This research is also important to the researcher because it remains part of
the requirement for the award of national diploma in business studies by the
NBTE.
1.
The strategies for
effective store management in a producing organization pave way for proper
recording of the store items.
2.
The significance of the
study also gives room for store accountability of the organization. Some store
managers tried all their possible to account for the store resources committed
to their hands.
3.
It also ensures
efficiency of the store stall that are to carry out the daily store activities.
4.
To gives the
organization confidence over the materials they have in store that is properly
managed.
5.
It makes the staff to
be competent in discharging their daily duties in store. It makes them to know
the right qualities of materials to be issued out and the quantities to be
received into the store.
1.5 SCOPE AND LIMITATIONS OF THE STUDY
The scope of the study “STRATEGIES FOR
EFFECTIVE STORE MANAGEMENT IN PRODUCING ORGANIZATION, a case study of vitamalt
plc, is therefore to cover diverse area of high relevance to all producing
organization.
The areas to be covered are the
following:
a.
The positive effects of
store management
b.
The nature of material
to be stored and their life-span in the store
c.
How fraud can be
detected and prevented in the store
d.
The procedure for
issues of store items and receipt in the store.
Needless to say that uneasy to the way of success
many constraint and lordship stood between us and the project in spite of our
continuous explanation that the exercise is for academic purpose only yet,
among personal withheld vital facts from us.
Lack of fund, at the time of this research study,
the money needed for implement was not sufficient.
Time factors, the fact that research project is part
of the school, there was no enough time to get details of the research study as
expected.
1.6 DEFINITION OF TERMS
STORE:
It is a general term describing the goods which are held in storehouse and
stock house.
STOCK:
It refers to all materials, part supplies; expenses; work in progress or
finished product recorded on book by an organization and kept in store room.
STRATEGIES:
It simply means procedure in planning and directing of the whole operation of
policies.
EFFECTIVENSS:
having an intended or expected result
PROMOTION:
One of the major marketing mix variables concerned with informing the target
customers that the right product is available at the right place, at the right
price.
ADVERTISING:
Is any paid form of impersonal presentation of product or ideas of commercial
significance to prospective buyers. It involves presenting to a group orally
visual or openly through one or more media and it is paid for an identified
sponsors.
SECURING ACTION:
The climax of the sales presentation is the securing of sales action.
The sales may be determined with the
customer’s decision to by or not buy.
SALES PROMOTION:
It is any activity that is used to stimulate sales of a product a services and
usually accruing once over a limited period of time such as sales conducted by
a retail store featuring reduction on money items of merchandise.
PLAN OF THE STUDY
The vitamalt plc, which specialize in
the manufacturing of vitamalt drinks. The increasing demand of quality soft
drinks by individuals and co-operated bodies which leads to the expansion of
the present lines were embarked upon to increase the output. The increase in
the purchase of raw material and modern machinery made provision for extension
to store system into sub-store to meet demand from different production line.
It’s noted that about 45% of the company raw material are imported while 55%
are produce less quality and sub-standard materials.