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Warehouse Training Packet

Table of Contents

Part I: Purpose

1. Purpose of Warehouse Training Packet
2. Summary: Common Errors and Preventions

Part II: Receiving, Storing, Shipping

3. Receiving of Freight
4. Packaging of Parts
5. Storing of Parts
6. Warehouse Location System
7. Mezzanine Storage
8. Packing and Shipping

Part III: Ordering, Returns

9. Stock Order Processing
10. Order Filling
11. Parts Returns

Part IV: Inventory Counts

12. Inventory Counts

Part V: Maintenance

13. Warehouse Housekeeping
14. Vehicle and Equipment Maintenance
15. Personal Improvement

Part VI: Safety

16. Warehouse Safety
17. General Safety Practices

Attachments: (copies of policies and procedures)

Part I: Purpose
1. Purpose of Warehouse Training Packet

Purpose: The role of the warehouse personnel has a direct impact on several key elements of
__________ business:

Assist in managing one of the largest assets of ________ spare parts inventory. The task
we perform, and the accuracy of all that we do, contributes to the credibility of the parts
Providing exceptional customer service through timely, and accurately, perform the
various warehouse responsibilities. Our customers rely on the availability our spare parts
to keep their machines operating. The accuracy of our inventory builds confidence in our
ability to serve our customers.
Efficiency within the company is gained through everyone doing their area of
responsibilities accurately and timely.

Therefore this training packet has been prepared to assist you in gaining some of the skills needed
to perform your warehouse responsibilities. This document cannot cover all the various tasks, so
please dont hesitate to visit with your supervisor regarding any question that may arise.

2. Common Errors and Preventions

Common errors involving warehouse operations typically are related too:

Timely process of documentation- Parts inventory management requires the timely
processing all activities related to storing, stocking, shipping, counting of the inventory,
and processing of the documentation.
To avoid the common errors it is important to understand the impact the task has on
managing the parts inventory, follow the required instructions, and ask for assistance for
those areas that you are not familiar in handling.
Part II: Receiving, Storing, Shipping
3. Receiving of Freight

Receiving of freight is the beginning point of spare parts inventory management. The following
information is critical to the processing of incoming freight:

Incoming freight is to be unloaded and inspected for damages and shortages before signing
the manifest. Any damages should be noted on the manifest. The proper procedure for filing
a freight claim should be followed based on the carriers guidelines. Timeliness and proper
documentation is critical to assist in processing the claim. Taking of photos can be very
helpful in noting and settling of claims.

Instructions and communication with the delivery drivers that all trucks need to have wheels
chocked for safety. NO EXCEPTION

Freight is to be put in the designated area for sorting between stock and emergency orders.

Stock orders are checked and put in proper locations within 24 hours after receiving.

Emergency orders are to be checked in 2 hours after receiving for customers and shop orders
that are pending. Freight charges are then determined and added to shop and customer orders.

Paperwork is given to Inventory Analyst to input in the computer system to update the
inventory on hands.

The proper packing slips for Emergency orders to be shipped to the shop, and customer
destinations, are printed and attached to the shipment.

Daily all incoming and outgoing paperwork is to be filed in the appropriate folders for future

Air shipments consists of the following: UPS and FEDEX

Shipments are to be counted, and compared to the shipping manifest received with the
shipment. This must be done prior to signing the carriers receipt.

Part II: Receiving, Storing, Shipping
4. Packaging of Parts

It is important to use caution while handling parts with various types of packaging. Therefore
caution must be used to properly identify the various types of packaging and the proper method
of handling each.

Multiple packaged parts- Parts that are a greater number than 1 in package. For example a
package includes a quantity of 10, but sold as individual units.
Parts packed in sets- Parts that consist of two or more identical pieces that make QTY 1 set.
For example 2 brake shoes make one set.
Parts packed in kits-Consists of multiple parts and quantities to make 1 kit. For example , 1
cylinder seal kit consists of several parts to create the kit:
Seal bearings
O rings
Oil bearings

All these parts are used to reseal/rebuild one hydraulic cylinder.

Prevent improper stocking of parts by:

Never overstock parts in a location. If the location is not large enough, re-locate the parts to a
location that will accommodate the additional inventory.
Use caution when placing parts on the shelf as to the proper part number, quantity, and
package quantity. This will assist in maintaining inventory accuracy, and speed up the order
filling process.

Part II: Receiving, Storing, Shipping
5. Storing of Parts

Storage space in a warehouse is in most cases limited, and the most efficient use of space is

Stacked cartons should plainly display the part number. This will allow for quicker filling of
the order and support an order free of pulling errors.
Avoid stocking of multiple parts in the same location. When this occurs make sure the parts
are dissimilar to assist in avoiding a pulling error.
Each bin location should be clearly marked with the correct part number. Bin labels that have
become damage, partially missing, or worn should be replaced.
When storing parts outside make sure the carton is weather proof to the level to protect the
parts inside the carton. Moisture due condensation can cause rust and damage to parts stored
inside closed crates, or cartons.

The following information applies to the proper stocking of parts:

All parts placed in stock will have a visible part number attached to the part or carton.
All part numbers will face front while stored in the rack and shelving locations.
All overstock locations will be clearly tagged showing the overstock location so these parts
are utilized before pulling from the permanent location.
All discrepancies will processed within the established guidelines and time frames.
Remove any unnecessary tags, wire, tape, strapping material.
Be careful when storing parts to make sure it is clear if the part is sold in individual units or
in package quantity.

Prevent improper stocking of parts by:

Never overstock parts in a location. If the
location is not large enough, have the
location changed.
Never overload wire baskets or shelves.
Make sure the part number and description
match the part being stocked.
Do not remove the protective packaging
material from parts being protected from
rusting, dirt, and weather conditions.
Parts with machine surfaces should be stored
and handled in a manner that protects the
surfaces from damage.

Part II: Receiving, Storing, Shipping
6. Warehouse Location System

Each warehouse has a layout based on the type and size of parts being inventoried. Each new
employee will become familiar with the proper layout of the warehouse and assist in the proper
stocking of parts that will support location system that is in place.

To assist in becoming familiar with the location system:
All aisle should be properly marked and easy to identify
Sections within a row should be clearly marked to assist in determining the proper

Any questions regarding the proper stocking of parts need to be referred to the Parts/Warehouse

Part II: Receiving, Storing, Shipping
7. Mezzanine Storage

The use of mezzanine storage will be intended for lighter, slower moving inventory, or for
storage of supplies, packing and carton storage.

The cleanliness of the mezzanine areas will be maintained to the same high stands as the
main warehouse. All shelves will be free of dust and organized in accordance with the other
warehouse standards and practice.
All weight limitations will be clearly marked and followed based the limitations that are
Part II: Receiving, Storing, Shipping
8. Packing and Shipping

Our professionalism is evident to our customers in many ways, one is the appearance of how we
package and ship parts. If the customer doesnt receive all the parts they ordered, or the order is
incorrect, the image of ________ can be negatively impacted.

Each part will be plainly marked or tagged that identifies the part number and quantity being
Clean boxes and packaging will be used for parts shipped to our customers. We will display
a high level of quality and professionalism in all shipments.
Cut off times for the various shippers must be known to insure timely order processing and
meeting the shipping cut off times.
Do not over pack a carton in a manner that can cause a safety hazard, or makes difficult for
the customer to handle the package. Each individual has different limitations on what can
lifted and carried. In general the weight of any one carton should not exceed 50 pounds.
This can vary based on the size, shape, and demission on the part.

Part III: Ordering, Returns
9. Stock Order Processing

Processing of the stock orders is a critical step in providing the proper parts at the proper time to
the customer. The goal is to have all stock ordered received to be on the shelf and the on hands
current within 8 hours after receipt.

The following picture is of a vendors pick tag:

Warehouse Responsibilities:
Location- Bin location the part is to be placed. It may help to expedite the complete stock
order by sorting the parts by bin location prior to putting stock on the shelf.
Part Number- This number represents the vendors part number, and it should be verified
against other parts on the shelf and the bin tag associated with the bin location.
Pick Qty- Represents the number of pieces associated with the part number for a specific
stock order. This quantity should be verified with the parts received on the stock order. If the
quantity does not match the description on the packing list and give to the Parts Manager.
Description- The description on the tag should be matched to the physical to insure the
proper part has been received. For example, if the tag description is bearing, and what we
have received are bolts a claim discrepancy has been identified. Note the discrepancy on the
packing list and give to the Parts Manager.

Item- Identifies the item number on the packing list. This allows for a quick check against
the packing list.

Once the parts have been compared to the packing list, and placed on the shelf, give the
packing list and noted discrepancy to the Parts Manager.

Part III: Ordering, Returns
10. Order Filling

Need to complete

Establishing priority of filling orders based on the information on the document.

List the important elements of filling the order

May show copy of document
Parts are listed in location sequence
How are parts to be tagged, bagged, marked
Where are orders placed once filled (Will Call, Shop/Field, Outbound shipment)
How are orders (once filled) to be marked
If a part or its container appears to be used, crushed, or damaged in any way the part is to be
inspected prior to shipment to verify the customer will be receiving what is expected. This
may require repackaging.
When pulling one or more parts from a part stocked in a package quantity, empty all the
remaining part into the bin, and dispose of the packaging material.
Part III: Ordering, Returns
11. Parts Returns

Customer Returns- Accepting parts returns from customers is an important part of our business. It
is important a few points are kept in mind while processing credits:

Review the condition of the package the parts are being returned. Any broken packages, seals,
or soiled packages should be brought to the attention of the Parts Manager.
Verify the quantity, description, and condition of the parts being returned.
Be cautious of cores being returned. It can be easy to mistake a core for a new part being
Know the parts return policy for the parts being returned. The return criteria will vary based
on the vendor and type of parts.

Vendor Returns- Returns sent back to our vendors are handled very similar to filling an order for
a customer. The primary difference is there may be a need to remove big tags. A vendor return
is divided into two portions. One is to ship back all of a particular part number, and another will
be a partial shipment. It is important pull the return based on the direction from the Parts

Part IV: Inventory Counts
12. Inventory Counts

Proper conducting of the regular scheduled cycle counts and end of year physical counts validates
the accuracy of the how well __________ manages it spare parts inventory.

Refer to the Inventory Count policy ______ and refer any questions to the local Parts/Warehouse

A part found while conducting counts should be noted and the part number, description, and
quantity given to the Parts Manager for additional research.
Part V: Maintenance

13. Warehouse Housekeeping

Proper housekeeping of the warehouse area supports:
A safe work environment
Professional appearance to those that work in the area, or view the area
Efficiency and accuracy in the tasks that are performed
Protects the assets of the company

Take a look around the warehouse area and see if can identify examples of good and poor

Daily Housekeeping Requirements:
Floor and dock areas are swept and trash
picked up and disposed
Cabinets and shelves are dusted.
All trash cans are empted at end of shift. No
trash will be left in the warehouse after
Floor areas will be clear of oil/liquid spots
and spills.
Hose press area is cleaned and excess hose
in put back in the proper location after each

Prevent Untidy Conditions:
Keep empty boxes and bags out of storage locations.
Keep trash (coffee cups, pop cans, etc) picked up and disposed of properly
Used banding materials will be picked up and disposed of properly. Banding material should
be removed from pallet once it has been cut. This will also avoid potential of causing an
injury via being cut or tripping on the banding
All tonnage is stored in a neat manner that is
assigned/designed for that purpose. Broken and
splintered pieces will be disposed of properly.
Broken pallets are replaced and thrown away. This
will avoid the potential of an injury due to the
pallet collapsing.
Overflow parts will not be stocked on the isle way
floors. Overflow will be moved to an assigned
area of the warehouse and marked accordingly.
Fire hydrants, door passageways, and electrical
junction boxes will be kept clear and accessible.

Part V: Maintenance

14. Vehicle and Equipment Maintenance

The treatment and maintenance of all warehouse equipment insures high productivity, lower
operating cost, and encourages a safe working environment. All employees will be expected to
operate all equipment in a manner that is respectful of others, and in a manner that will not
sacrifice the health of the equipment.

Speed or abuse of the equipment will not be tolerated.
Daily inspections will be conducted, with the needed repairs noted scheduled based on the
severity of the repair need. If the repair that is needed is safety related, or will sacrifice the
health of the machine, the unit should be tagged out and not utilized until the repair has been
Unsafe equipment will be reported to the supervisor immediately, and the appropriate action
will be taken to correct the need.
Vehicles will be kept clean inside and out at all times.
Prior to operating the vehicle a visual inspection will be completed and any noted damage
will be reported to the supervisor.
Vehicles should be filled if the tank is below full.This will insure quick response and
respect to the next individual that will be using the vehicle.

Each individual will be tasked trained to operate the various type of equipment that will be used
during the daily warehouse operations.
Part V: Maintenance

15. Personal Improvement

We have reviewed a great deal of information that relates to properly performing the warehouse
responsibilities. One additional factor that will contribute to your success is your own personal
attitude toward your job responsibilities, fellow workers, customers, and toward the
accomplishments of the corporate goals.

A good attitude is contagious to others around us. Our attitude provides the opportunity to
develop relationships with our customers, and co-workers that will contribute to our success.
Your attitude is yours to own and manage.
Along with a positive attitude, the physical appearance you present also sends a message to
those around you, and contributes to the relationship with those we work with on an
individual basis. Your personal appearance should be neat and clean. Avoid wearing any
item that could be hazardous if you work around machinery.
One way to build success into your job performance is too continual grow your knowledge in
your profession. Recognize changes in our business and assist in finding ways we can better
perform our areas of responsibilities and our competitiveness in the market place.
Let your supervisor know what your career goals are and develop a personal plan that will
assist in developing the skill you need to accomplish your personal goals.
Part VI: Safety
16. Warehouse Safety

Warehouse Safety- Safety is everyones responsibility. Each employee is expected to
perform their duties and responsibilities in a safe manner. Attending weekly safety meeting,
annual refresher training, and wearing of the proper personal protective equipment is an
Common Warehouse Tools-Know how to safety operate all tools and equipment associated
with proper warehousing.
Proper Lifting- Serious injury can occur from improper lifting. It is important to follow the
proper guidelines in bending, lifting, and twisting while lifting and move parts.
Lift Truck Safety- Proper operating of all forklifts and other material handling equipment
will include proper training in operating practices of the equipment.
Improper use of hand tools is one of the largest contributors to injuries in the warehouse.
Use caution when using box cutters and knifes.
Hazardous Material Handling- Proper handling of the parts we stock that are classified
hazardous material require special stocking, shipping, and handling practices. Each employee
needs to be familiar with the Hazardous Material Safety Data sheets and the proper stocking
Hydraulic Hose building- Building of hydraulic hoses require specific training in the proper
use of utilizing hose presses, hose saws, and stocking of the spare parts associated with
hydraulic type parts.

Specific training will be provided in the above areas and all questions need to be addressed as
quickly as possible.

Part VI: Safety
17. General Safety Rules

There are many job responsibilities that have been reviewed in the previously listed information,
but an additional focus on some general safety practices are listed below:

____________ expects each employee to practice safe work habits in all tasks we perform.
Any violation of safe work habits can create, or contribute to the employee, someone else, or
property damage/injury.
Employees must not engage in any form of horseplay.
All safety and traffic signs must be observed.
Unauthorized personnel must be kept out designated areas.
Good housekeeping is required as part of our job responsibilities. This helps to prevent
hazardous conditions and inefficiencies in our operations.
Tooling, equipment, and materials used in our everyday jobs will be in good working order.
Any damaged or broken items will be removed from operation to prevent the opportunity
injury or damage.
Proper personal safety equipment will be used based on the task to be performed. It is the
supervisors responsibility to provide the proper personal safety equipment for the job to be
Only authorized employees will operate the equipment or vehicles.
Equipment or vehicles that are being repaired will be locked out tagged out.
Proper lifting practices will be utilized to avoid injury. Assistance should be requested when
lifting exceeds what should be expected based on the individual conditions.
Employees must know the location, operation, and proper use emergency equipment and the
proper practices based on the situation.
Attachment 1:

Spare Parts Cycle Count Guidelines

Purpose: To monitor the accuracy of the spare parts inventory in both the physical on hands and
dollar value, and identify areas for improvement in the management of the spare parts inventory.
Cycle count is not only a time to verify the physical on hand inventory, but to also verify that
proper warehousing practices and procedures are being maintained.

Count Schedule- The General Parts Manager is responsible to ensure each location is conducting
weekly cycle counts. The trending of the line items counts and adjusted, percent line items
adjusted, and dollar adjustments will be measured, monitored and corrective actions implemented
on a location by location basis.

Cycle Count Classification- The cycle classification will encompass that all high dollar items
and faster moving items (individually priced or accumulative valve that exceed $2,000 and/or
10% of the faster moving parts) will be counted every 90 days. Slower moving items will be
counted at least once per year.

Conducting Cycle Count- The proper conducting of cycle counts are critical in the proper
management of the spare parts inventory:
Prepare for the weekly cycle count. All stock put away and receipted, credit returns put
on the shelf, and orders to be pulled must be completed to allow for an accurate count.
Receive the weekly cycle count report from the Parts Manager at the branch store.
Conduct the physical count, without viewing the computer on hands. Note the physical
count on the count sheet. While doing the counts, view the warehouse area near the count
area looking for areas needing improvement in proper warehousing practices. Examples
of what to look for can be seen in the Warehouse Training Booklet. Note these concerns
on the count sheet to be addressed after the counts are completed.
Enter the counts into the system based on the physical counts taken.

Conducting Recounts- Recount reports will list any item that does not match in physical on
hand and dollar amount.
Conduct recount for the listed discrepancies. When conducting recounts take extra care to
identify the potential causes for the count being incorrect. This should include check the
locations in and around the part being counted, looking for credits, stock orders, or orders
that have not been processed.
Enter the recounts into the system based on the physical recount.

Entering Inventory Adjustments- Adjust inventory based on recounts. Select Reports and
then final Report and print. This report shows the differences of the plus and minus for each
item recounted. This list of items needs to be adjusted accordingly. Access work order no.
XCYCLE and the appropriate segment that corresponds with the assigned store number (17
California for example). Enter the item if a shortage exist, and enter a (-) if an overage occurs.
All of the adjustments should be done on one document.
Attachment 1

Reviewing of Inventory Adjustments- It is important to review the line item and dollar
adjustment to identify possible trends and implement corrective action to better manage the spare
parts inventory.
The Parts Manager at each location (if there is not an assigned Parts Manager the
Corporate Parts Manager is responsible) will review the inventory adjustments weekly
and research the discrepancies of line items and dollar adjustments. The review will
include reviewing stock receipt dates and quantities, parts return and credits, orders
placed, package quantities, core credits, etc.
The Corporate Parts Manager will provide a monthly report showing the adjustments by
location to each Stores assigned Parts Manager. The causes that have been identified will
be reviewed and track for areas of improvement. The results of the count adjustments will
be posted in the work areas as a key measurable.

Inventory Report Maintenance Practices- Performing regular inventory report maintenance
insures an environment that promotes inventory accuracy. The following reports support the
proper practice of managing the parts inventory:
Bin Maintenance Report- This report is used to verify the parts information system
matches the physical information in the warehouse. The report shows the part number,
description, and location of the entire warehouse in location sequence. The purpose is to
match the report against the actual bin tag on the shelf. Note any discrepancies and return
to Parts Manager for review and correction. The typical discrepancies will be:
o The part number is not on the report, and there is a bin tag (but no part). The bin
tag should be removed.
o The part number is on the report, and there is a bin tag. The report and bin match,
so no additional action is necessary.
o The part number is on the report, and there is not a bin tag. Verify if there are any
items on stock order, or if a recent location change has been made, and determine
if the bin location should be deleted or a bin tag put in place.
o The part number has a bin tag, but is not on the report. Review if there has been a
recently assigned new bin location since the report was run. If the bin tag matches
the system no future action is necessary. If the system shows there is not assigned
location, and there are no parts on order then remove the bin tag.

Deleted Record Report- This report prints at the time that stock orders are printed for
review. The purpose of this report is to identify the line item locations that are being
deleted due to a zero on-hand and insufficient history to justify stocking the part. The
report is to be verified by checking the report to the actual bin location to verify there are
no parts on the shelf. If there are no parts on the shelf the bin tag is to be removed. The
employee that reviewed the report vs. the parts shelf will sign the report and maintain the
report in a file. The file is to be maintained for the fiscal year. When checking the shelf
and a part is located, count the part number quantity and provide the report to the Parts
Manager who will research the part to determine the proper disposition of keeping or
disposing of the part.

Attachment 1

Open Order Age Report- This report identifies what parts are on order and the age of
the order. The purpose of keeping this report current is to identify if any part may have
come in, have been put on the shelf and not receipted; and noting any potential parts
shortages due to the supplier not being able to fill the stock order needs. This report
should be reviewed monthly by the appropriate Parts Manager.

Corrective Action-
An important element for continuous improvement is to identify areas that continue to arise,
identify the cause, and implement a corrective action to prevent the reoccurrence. The following
information is intended to provide a guide on reducing the reason for a recount.
Identifying common causes for discrepancies and determine if the cause is due to lack of
training, poor warehousing practices, improper documentation, lack of timely processing
of orders, receipting of stock orders and credits, or other causes that have created the
inventory inaccuracy.
Any location that has three months of over 5% of the line items adjusted, and/or 1.5%
(plus or minus) of the stores dollar value counted will have an onsite inventory review
that will include the Corporate Parts Manager, Inventory Control Supervisor, and the
assigned Parts Manager.
The purpose of the onsite review will be to determine the causes for high line item and/or
dollar adjustments and implement corrective action. A monthly review with the specific
parts department will be conducted with a documented corrective action plan
implemented and followed.