Receiving and Storage of Goods
Retailers use product classification to understand consumer buying behavior, which helps in designing marketing strategies to boost sales. The types of products and purchasing methods are crucial for firms, as they influence product classification and marketing campaigns aimed at increasing sales.
In the retail industry, a store operations assistant plays a key role in processing goods at retail stores. Most retail stores prepare a manual outlining standardized procedures and policies for receiving and delivering goods. These guidelines are generally followed across all stores, ensuring consistency in operations.
Store operations assistants must check their store’s policies for receiving and delivering goods. Retail businesses, especially stores, must ensure safe storage of goods while fulfilling their legal duty to protect the health and safety of employees and customers. Proper storage practices help businesses reduce pollution, minimize waste, and lower costs.
The Receiving and Storage of Goods unit is structured into four sessions:
- Classification of Goods – Covers different types of consumer goods.
- Receiving Goods in Retail Operations – Explains the procedures involved.
- Storage of Goods Received – Focuses on proper storage practices.
- Handling Goods – Details the process of managing and organizing goods efficiently.
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Classification of Goods
Meaning of Goods
Goods are tangible items that provide utility and are relatively scarce. They include articles, commodities, merchandise, materials, supplies, and wares produced through agriculture, manufacturing, construction, or mining activities. In economic terms, such items are referred to as commodities.
There are two types of goods:
- Economical Goods: These goods can be obtained by spending money.
- Free Goods: These goods are freely available without cost.
Types of Goods
Retail operations deal with two main types of goods:
- Consumer Goods
- Industrial Goods
Consumer Goods
Consumer goods are products that are ready for consumption by consumers, such as clothing or food.
Types of Consumer Goods
- Convenience Goods: These are easily accessible to consumers and require minimal effort for purchase. They are frequently consumed and regularly bought. Examples include Fast Moving Consumer Goods (FMCG) such as food, confectioneries, and milk.
Convenience Goods
Convenience goods are further classified into Staple Goods and Impulse Goods.
- Staple Goods: These fulfill the basic needs of customers. Examples include bread, butter, milk, and sugar.
- Impulse Goods: These are purchased without prior planning. Examples include chocolates, soft drinks, and wafers.
Shopping Goods
Shopping goods are not purchased or consumed as frequently as convenience goods. They are semi-durable and relatively expensive. Examples include clothes, footwear, televisions, radios, home furnishings, and jewelry.
Specialty Goods
These goods are unique, unusual, and specialized in nature. Examples include antiques, luxury automobiles, and wedding dresses.
Unsought Goods
Unsought goods are available in the market but are not actively sought by consumers unless required. Examples include insurance policies.
Classification of Retail Goods
Retail goods can also be classified into durable, semi-durable, and non-durable goods.
Durable Goods: These do not require frequent purchase as they are made to last for a long time.
Semi-Durable Consumer Goods
Semi-durable goods are those that do not last for an extended period. These items typically have a moderate lifespan and require periodic replacement. Examples include clothes, furniture, footwear, jewelry, and home furnishings.
Non-Durable Consumer Goods
Non-durable goods are meant for immediate consumption and are perishable in nature. They typically have a short lifespan and need to be replaced frequently. Examples include vegetables, fruits, milk, and bread.
Industrial Goods
Retail organizations purchase goods not for direct consumption but for further production or business use. These goods serve as components used by industries to manufacture finished products.
Industrial goods are divided into four categories:
- Materials and Parts: These are essential raw components used in manufacturing finished goods.
- Capital Goods: These facilitate smooth business operations, such as office accessories.
- Supplies: Items used for day-to-day business activities but do not form part of the final product.
- Industrial Services: Services that support business functionality, including maintenance, repairs, machinery servicing, and business advisory services.