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Aung Kyaw Moe / Task 9 Warehouse and Inventory

Memo To: From: Date: RE: Francois Damba Aung Kyaw Moe
29 May 2013


Verification of physical stock checking As a part of warehouse management system, we have to carry out the physical control of the stock by checking information on the physical location and final status of the stock. We have in our hand a stock report of Chagong in the Handover Report of the previous Logistics Officer. We have to do the following steps to verify the stock level by physical checking: We have to cross check the stocks issued from Mugla warehouse and stock received from Chagong warehouse. The data entries from the 2 warehouses must be matched. We have to carry out a Physical checking of stock in the warehouse. There must not be any discrepancies between actual stock location and quantity and what is regularly recorded in the database. If there is any discrepancy found, we have to record immediately and report about it to the higher level of management. At the same time we have to find out the reason of that discrepancy and take some action to avoid the same mistake in the future. Investigation of the Discrepancies between Stock and Stock Records When an emergency happen suddenly, we have to push the supplies to the affected areas as soon as possible and we are in a hurry to do so. In this regard, it is normally the weakest time to keep correct records of the flow of Goods. We cannot recruit promptly some able and experienced staff to handle the stock outflow correctly and there were not some good report and controlling systems in place. At that time, discrepancies can be happened on account of the following reasons: Failure to check the outgoing supplies properly Failure to check the quantity mentioned on the delivery waybills Lack of catalogue and coding system in warehouse management Putting stocks in the wrong location and mixing up the different items in the same place Failure to take record immediately on bin cards and stock record when supplies in/out Releasing supplies without official/on paper authorisation Misappropriations of supplies

Procedures to establish to have a good and accurate stock record system Warehouse Manager is fully responsible for keeping a good and accurate stock system in place. Every movement of stock in and out must be monitored and put into record properly. Based on these records, we can create the reports to our donors about our inventory management process. In our stock record system, we must carefully take into account the following key factors: => Providing unique identification number for each and every single item we stored => Using Stock Card to record the items ID, pack quantity, location in the warehouse and data for further inventory control => Using Bin card to mention the ID of a batch of a stock which must be placed physically near to the actual piling of the stock Based on these important factors, we need to set up a good system of documentation that can control and record the every movement of the stock. The major parts of stock management that required accurate documentation are as follows: 1/Receiving 2/Storage 3/Picking 4/Release/Dispatch 1/Receiving Receiving goods and supplies is the major activity a warehouse must regularly do whenever a certain amount of supplies flow into the warehouse from suppliers or donors. In this regards, all supplies coming into the warehouse must be accompanied by some documentation such as Purchase order, or purchase contract, delivery waybill from the supplier or from another warehouse and some form of shipping documents as AWB/Bland Invoice Packing list. After cross checking the physical supplies with the attached document and they are found to be correct, these supplies must be stored by using proper and suitable documents. A warehouse receipt voucher must be issued accordingly and give to the party that transport the supplies. 2/Storage After checking of these supplies show that quality, quantity and type/kind/brand and detail descriptions of the items are correct, these supplied should be stored at a certain suitable location and all relevant data should be recorded on the stock cards and bin cards properly. A complete record of each item must be recorded on Stock card (mentioning date, quantity, description, Location, package type and any other important information like expiry date and batch no of the product. We have to record Purchase order number and supplier details in order to track the movement of supplies in the pipeline. It also records dates of dispatch with information about final destination. In addition, all incoming item must have a Bin card to indicate what the received quantities and origin of sending and time of receiving. 3/Picking list When we received the despatch requests from our programme colleagues, we can fill in the picking list in order to select the required items out of storage. We have to file all these picking lists for future record and reference. 4/Dispatch request and Waybill/ Delivery Notes

When supplies are going out of warehouse in accordance with the dispatch requests raised by programme, it is very important to record the movement of supplies in all relevant documents such as Bin Card, Stock Card and these out going supplies must be accurately put on Way Bills and Delivery Notes. The name of consignee, description of items, quantity date, consignee, driver name, truck number, name of dispatching officer as well as details of the receiving person in addition to space for remarks about delivery condition and any specific information about the supplies sent must be recorded on these documents. In addition to the above-mentioned documents, we need a daily warehouse report of each warehouse staff. In their daily report, each staff member should record what they have done in their respective areas of works in the warehouse. Even tallyman can have a report about the receiving and dispatching of supplies and about detail quantity he can report to the warehouse manager. There should be a readymade printed form to be filled up by the staff as a tool to control the receiving and dispatching processes of warehouse. This daily warehouse report can help us to cross check the some inventory errors in the main stock records. Since all documents used in our warehouse are interlinked, the mistakes in one document can be traced back and verified by the other related documents. Other factors needed to be consider Apart from the keeping of correct documentation, we need to have a workable organizational structure for our warehouse. The following man power is essentially necessary to run our warehouse: Job Title Warehouse Manager Data Entry Clerk Tallyman (1) Tallyman (2) Tallyman (3) Responsibility/Duties over-all management maintaining Inventory Data Receiving Supplies Storage of Supplies Despatch of Supplies Report To Logistics Officer Warehouse Manager Warehouse Manager Warehouse Manager Warehouse Manager

Although currently we use manual stock record system in Chagong warehouse, we need a good information system for warehouse management and stock records that will help us to handle issues in less time and more efficient ways to prepare for our stock reports. This information system will also give us more control to handle the stock in/out by helping in preventing discrepancies and tracking the location and direction of supplies. Not only that, we can help our programme colleague for having a good planning tool enabling efficient implementation of projects by using these well-stocked supplies.

Best Regards, Aung Kyaw Moe Logistics Officer Sub-Office (SCILaid Betaland)