Inspection and Storage of Materials

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on October 8, 2021

Inspection of Materials

Due to the growth of precision capabilities in measurement techniques and manufacturing processes, new products have been developed, along with quality improvement routines for old products.

As a result, it has become necessary to thoroughly inspect any materials purchased either at the supplier’s warehouse (or godown) or at the time goods are received by the receiving department.

The main aim of inspection is to prevent the production of non-standard items. As such, inspection of materials is today of the utmost importance; both quality and quantity must be checked and inspected systematically.

Objectives of Inspection

The main objectives of inspecting materials are the following:

  1. To maintain product quality
  2. To receive only the correct quantity of materials
  3. To ensure that suppliers are careful and efficient
  4. To utilize the money invested optimally
  5. To increase the watchfulness of the purchase and store staff

Advantages of Inspection

The main advantages of inspecting materials are listed as follows:

  1. Ensures the quality of materials, thus helping to maintain steady development
  2. Improves goodwill due to high-quality production, thereby lowering costs because the inspection of materials assures effective production
  3. Enables low-cost procurement of statement items, which favorably influences the cost curve due to less wear and tear, wastage, and so on
  4. Often increases profitability

Storage of Materials

Materials are received in an organization’s storage department where they are stored until issued to the using department. Materials are preserved to protect them from different types of damages, which maintains their original value and quality.

Maintaining the original value and quality of materials can improve production quality while reducing storage and production costs. Storage of materials, therefore, is a critical function. Receiving is important, but storage is still more important because it aims at:

  1. Keeping materials safe
  2. Protecting materials from damage
  3. Protecting materials from loss of value or quality
  4. Ensuring the availability of materials in a perfect and serviceable condition
  5. Ensuring the smooth and efficient functioning of the production department

Efficient storage requires careful consideration of the following:

  1. Checking of materials
  2. Classification of materials
  3. Codification of materials
  4. Arranging of materials
  5. Systematic storage of materials in bins, racks, and other places
  6. Keeping watch on different level points so as to take necessary and timely steps
True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

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