MATERIAL MANAGEMENT STORES LAYOUT AND PRINCIPLES OF STORES BY – CHANDNI BHATT (283009) ARBAAZ KHAN (283019) INDRANEIL MUKERJEE (283035) HARITHA SINGH (283054) STORES LAYOUT AND PRINCIPLES OF STORES INTRODUCTION- STORES LAYOUT AND DESIGN It means the design of a store's interior to encourage people to enter the store and expose them to the maximum variety of merchandise within the space available. For example, some stores have the fresh fruit and vegetable display at the entrance because it is colorful and will attract people in while other stores have fresh foods and other frequently bought items which are located inside the store so people will be exposed to all the other displays when locating them. Store layout needs to guide the customer silently about where he/she wants to go and for exposing him/her to the entire store offering. (The store itself it’s the most meaningful communication between the retailer and the customer) The stores activity has characteristics of non value added activity. It is essential to have a better look at the design of the stores layout and facilities. Better managed stores are laid out in better style. There is no unique approach or design for a store. Stores come in all sizes, shapes and configurations depending on the need and circumstances. There is no uniquely ideal manner to design all stores. In view of objectives, the correct proportion depends on the situation and on the experience and knowledge of the designer. It has to be kept in mind that the stores layout is not like any other office layout. Office layout can be changed on and often but changing the stores layout is costly matter. So proper thinking is required before taking actions. CHARACTERISTICS OF STORES LAYOUT Location of stores difficult to change – The location of stores once taken cannot be easily changed. The reason being it is costly to change the storage location at a latter stage. Therefore, it should be decided and planned so as to ensure maximum efficiency. Optimal location of stores – The optimal location of stores minimizes the total transportation, handling and other costs related to stores operation and at the same time provides the needed protection for stores items. The models of facilities planning can be applied to determine the optimal location of storage in large size organizations. Stores location dependent on several factors – Location of stores depends upon various factors such as the nature and value of items to be stored and the frequency with which the items are received and issued to the different departments. Other important factors to be considered are the number and location of end users, variety and volume of goods to be handled, location of central receiving station and accessibility to rail or road links. Futuristic outlook – The location and building up of stores should be done with a futuristic outlook. The provision for the new departments and the increase in the volume to be stored, should be kept in mind. Stores located close to point of use – In general, the stores are located to the point of use. Raw materials stores are usually located near the first operation. In process stores are located near to subsequent operation, and finished goods stores are located near the shipping area. The tools and supplies stores are located centrally to the personnel and equipment served. LAYOUT AND DESIGN OF STORES The efficient layout and design of stores is very important from the point of view of its working, which is linked to the overall functioning of the plant. A good layout must be as follows – To achieve minimum waste of space and flexibility of arrangement. Supplying right material to production as and when required. Ensure easy movements of the material handling equipments. Minimize the material handling requirements. Minimize the material deterioration and pilferage. SUITABILITY OF STORES LAYOUT While planning the layout and design of the stores, following factors should be considered – The space for receipt and inspection should be provided adjacent to the main stores. Use of third dimension must be made effectively. Different storage facilities should be situated in clearly defined lanes, so that items are quickly stored and located. Main lanes should be 1.5 to 3 meters wide depending on the type of material and amount of traffic involved. Clear markings should be made at storage space to facilitate location and identification. The fast moving items should be stored near the dispensing window, the slow moving should be away from the window. FEATURES OF STORES LAYOUT According to Barton A. Weitz, director of the Center for Retailing Education and Research at the University of Florida in Gainesville, a store layout should do these three things: Stimulate Impulse Purchases One way retailers use layouts to entice customers to buy more than they intended is to draw them through the store so they'll see as many of the products as possible. Jewelry stores put their better products toward the back of the store to pull people in, he says, and supermarkets tend to put popular departments--produce, meat, bakery, deli--along the perimeter. Make It Easy To Find Goods Gatto's Cycle Shop is divided into separate showrooms by product categories, such as kids' bicycles or Harley-Davidsons. But displays also highlight products from other areas. Retailers often have to make a trade-off, Weitz says. For example, it's more convenient for supermarket customers if a deli is at the front of the store, he says, but some markets place it in the rear to stimulate sales. The ideal, according to Weitz, is "try to stimulate multiple-item sales without making it difficult." Create An Image Or A Feeling "From the front door, you want to say what kind of store it is, what the product is, and what the price is," says Mark Bradin, of the Walker Group/CNI, a New York retail-design consulting firm. Image was in Gil Klein's mind in the '70s when he designed Gil Klein TV & Appliance, in Fairview Heights, Ill. Klein put the service department in a prominent location to the left of the entrance "to put the customers at ease," he says. CONSIDERATIONS FOR STORES LAYOUT Considerations need to be taken to ensure effective and proper layout and design of stores. The considerations are as follows - High margin items should be placed in high traffic areas. High demand items should be placed in low traffic areas. Complementary items should be placed near each other. Seasonal needs should be considered. Items needing frequent restocking should be placed near storerooms or cash registers. Larger departments should be placed in lower traffic areas. Shopping behavior and operational considerations should be recognized. TYPES OF STORES LAYOUT A well-planned retail store layout allows a retailer to maximize the sales for each square foot of the allocated selling space within the store. Store layouts generally show the size and location of each department, any permanent structures, fixture locations and customer traffic patterns. Each floor plan and store layout will depend on the type of products sold, the building location and how much the business can afford to put into the overall store design. Below are a few basic store layouts – Straight Floor Plan Straight Floor Plan The straight floor plan is an excellent store layout for any type of retail store. It makes use of the walls and fixtures to create small spaces within the retail store. The straight floor plan is one of the most economical store designs. Diagonal Floor Plan Diagonal Floor Plan The diagonal floor plan is a good store layout for self-service types of retail stores. It offers excellent visibility for cashiers and customers. The diagonal floor plan invites movement and traffic flow to the retail store. Angular Floor Plan Angular Floor Plan Angular floor plan is best used for high-end specialty stores. The curves and angles of fixtures and walls makes for a more expensive store design. However, the soft angles create better traffic flow throughout the retail store. Geometric Floor Plan Geometric Floor Plan The geometric floor plan is a suitable store design for clothing and apparel shops. It uses racks and fixtures to create an interesting and out-of-the-ordinary type of store design without a high cost. Mixed Floor Plan The mixed floor plan incorporates the straight, diagonal and angular floor plans to create the most functional store design. The layout moves traffic towards the walls and back of the store. PRINCIPLES OF STORES The principles of stores include the functions, factors, organization, characteristics, methods and procedures of stores. Receive the material – Receiving and accounting of raw materials, bought out parts, spares, tools, equipment and other items. Counting for proper quantity as per the documents. Store the material – Provide the right and adequate storage and preserve the material properly. Ensure the materials do not suffer from damage, pilferage or deterioration. Remove the material when required – Facilitating easy location and removing materials. Deliver the material to right place – Fulfilling the demand of consumer departments by proper issue of items on the receipt of authorized purchase requisitions. Keep the records perfectly in discipline – To maintain proper records and update receipt and issue of materials. FACTORS FOR STORES DESIGN The type of material to be stored – The type of material will be deciding factor for the method and equipment for storing and handling the material to and from storage. The variety of material stored – If the variety of material stored is small, then it may be possible to use simpler and denser methods and storage. As the variety of parts increases, it is necessary to provide appropriate storage to each variety. The speed at which the material has to move – Speed of movement of a part reflects whether the part is fast or slow moving. It would be improper to choose the same methods for storing fast and slow moving materials. The location of suppliers – The location of the supplier will affect a number of factors. A supplier that is close to the plant may make frequent deliveries while a more distant supplier would send material in larger, infrequent loads. The location of customers – The location and geographical dispersion of customers play an important role in stores design. Distance from the customer influences the manner of material storage and transportation. CHARACTERISTICS OF STORES Maintain good housekeeping – Keeping the stores clean and in good order so that the handling, preservation, stocking, receipt and issue can be done satisfactorily. Keep proper control – Keeping a vigil on the discrepancies, abnormal consumptions, accumulation of stocks, pilferation, theft etc. Exercising controls measures. Manage the people in perfect discipline – The people working have to be in perfect discipline. The procedures have to be followed as per the written policies. Avoid keeping surplus material – Minimization of scrap, surplus, and obsolescence through proper inventory control and effective disposal of surplus and obsolete items. Verification of stocks at regular interval – Verifying the bin card balances with the physical quantities in the bins and initiating the purchasing cycle at appropriate time so as to avoid the out of stock situations. STORES METHODS AND PROCEDURES Identification method - Identification method is an essential method as it facilitates easy job. The description of item is lengthy and without perfect identification, stores system cannot be operated on mechanical or electronic computing devices. Receiving method – This method starts with the placement of purchase order of items by the purchase department. A copy is sent to stores. This copy gives an idea of the time when and what quantity is coming. This helps to plan the receipt, unloading, unpacking. When the delivery is received, the receiving section unpacks the materials. Weighbridges, measuring devices are used for this purpose. Storage method – There are 3 types of storage methods, that is, physical, open stores and closed stores. The physical method is important for easy location, proper identification and speedy issue to the consuming department. The responsibility of the open stores method is to deliver the material to production areas and to devise storage arrangements with the department. In case of closed stores method, all materials are stored in a closed area. Only stores personnel are allowed to enter the area. Issuing method – Issue are of 2 types: issuing to production departments and issuing to outside parties for processing. Production programs regulate the control of issues. That makes the list for each material quantity to be issued. Stores personnel are not authorized to issue beyond the work order quantity. CONCLUSION The stores layout is an important and essential factor which needs to be taken into account in warehousing and management. It is important to have a better look at the design of the stores layout and facilities. It should not be located at a remote place as is done in a number of factories. Better managed stores are laid out in better style. We can eliminate or reduce stores but not at the cost of stoppage of production. There is no uniquely ideal manner to design all stores. A thing has to be kept in mind that the stores layout is not like any other office layout. Office layout can be changed but changing stores layout is expensive. One cannot do it often. So proper thinking has to be done well before taking actions.
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