The followings are the advantages of classification of stores.
1. The chances of duplication and confusion can be avoided through proper identification. The problem of giving different names by different users for the similar items can be done away with scientific classification depending on use and similarity.
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2. Standardization refers to setting up of fixed sizes, types, qualities and measures etc. It also means standardization of nomenclature of materials. It eliminates unnecessary types, grades and a variety of materials or parts.
3. Classification should be accompanied with suitable system of codification. Each item in stores should be given a distinctive code so that there may be no duplication to multiple names.
4. The various items kept in the store room are classified into various groups which results into economical handling of material.
5. Classified or identification of items of stores facilitates the storing and recording of items in the stores ledger. Otherwise, it will be cumbersome to maintain records and store the similar types of materials in large sized stores.
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6. An organisation grows in size and level of activities, the number of items kept in stock also grows and human processing of data may not be possible. Presence of classification minimises fraud, reduces time and energy needed for recording and enables to detect the defects quickly and easily. The available statistics will be reliable and exact and will help future planning.
7. It is very easy for the stock keeper to keep the record of material after completion because by it, he knows the quality of material in hand every time. By the result the determination of various stock levels becomes very easy.
8. It makes easy to locate the items while issuing to different jobs. A lot of time, energy and labour is saved.
9. Due to classification of items the work of the budget department becomes easy because budget authorities need not have to analyse the items. So, budget department prepares the separate budget for separate type of materials.
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From above points, we may conclude that by classification every business activity move smoothly and there is less chances of errors and mistakes etc. Due to reliable data, future planning becomes effective.