STOCK

TAKING
 PURPOSE OF STOCKTAKING

• To verify the accuracy of stock records.

• To support the value of stock shown in the balance sheet by

physical verification.

• To disclose the possibility of fraud, theft or loss.

PURPOSE OF STOCKTAKING
MIS & TECHNOLOGY
 Introduction

Information is necessary to help warehouse personnel make

informed decisions.
The attributes of information are:
• Frequency
• Detail
• Accuracy
 Role of IS & Technology
Owing to the importance of IS and IT, an inter-organizational
information system within the warehouse chain is needed.
Customer Service Officer

Product
Product D B System
DB
SA P / O MS Product
Product Product
Mgt Data
Desc Complianc DB
Classification Data System
Part #
Quantity
Compliance System
ASN Compliance Exp validation result
System
Ship PO
N e w PO Confirm
PO change ASN
P O cancel Goods Factory
N e w SO Receipt
International
S O change (GR)
Boundary
Info flow SO cancel
ASN

Pick List

Information and Physical Flow in Warehouse Chain

Warehouse/WMS
(DO)

Customer Receive/Pick/
 Information Technology

 Warehouse Management System (WMS)

 Barcoding Technology
 Wireless System (RF Device)
 Radio Frequency Identification (RFID)
 Warehouse Management System (WMS)

 Warehouse Management System (WMS) is often referred to a

software solution which manages the movement and storage of
products.

 It handles cargo receiving, receipt documentation, activity tickets eg

putaway documents, and picking lists.
 Warehouse Management System (WMS)

• The benefits of WMS are numerous:

 Stock control

 Tracking

 Traceability

 Management reporting
Functions of WMS
 Control inventory level
 Control storage points
 Monitor quality (on/off hold)
 Monitor turn over rate
 Monitor batch#
 Perform Cycle Count
 Order Selection
 Storage Location Management
 Replenish and consolidate different
materials
 Assign and Monitor the operation
productivity
 Reverse/Shipping Logistics
 Provide report in real time
 Support
 Report Generation
 Operator Productivity
 Automatic Inventory Replenishment
WMS Benefits

• Elimination of Physical Inventory • Improved Work Environment

• Elimination of Order Checking • Improved Supplier Relationships
• Improves Operator Efficiency & Reduction
• Reduced Order Errors
of staff • Improved Quality Control
• Improved Order Accuracy • Decrease stock level
• Improve the inventory figure accuracy •
Decrease order checking
• Reduction in Inventory Reduced • Shorten the order lead time
Backorders
• Increase the quality control
• Improved Customer Service
• Improved Inventory Turns
WMS is a software to monitor and control operation
activities in warehouse
 WMS and Manufacturing
Extends Beyond Sales Order Inputs

• Solution Integration Enables:

- Task-managed component picks
- Cross-dock to / from manufacturing
Sales Manufacturing
Orders Processes - Directed ship from manufacturing
- Compliance labeling
- LPN and lot / serial creation
and tracking
• Supports Full Spectrum of Tasks:
- Simple kitting to full BOM / work
order jobs
WMS Solution
- Seamless CTO flow
 WMS and Service / Spares
Integrate all Inventory Transactions

Warehouse Mgmt
Manage high volume DC operations
(pick, pack and ship) with WMS and
leverage internal orders to release parts
to the field

Distribution Center • Provide a single, common view of

Regional / Field Field Technician
Warehouses Stock
Service / Spares Mgmt
all inventory
• Integrate and manage internal and field
inventory locations
• Consolidate / coordinate all field
requests to maximize DC efficiency
Documentation System in the Warehouse

Flow of Goods & Documents in the Warehouse

Inventory Visibility

• An accurate inventory visibility system.

• Having a good inventory system will allow companies to know the

stock level of their products before committing to customer orders.

• The ability to achieve inventory visibility can be achieved through

the use of warehouse management system (WMS).

 BAR CODE
• A bar code is a series of parallel black and white bars, both of
varying widths, whose sequence represents letters or numbers.

• This sequence is a code that scanners can translate into important

information.

• Bar codes are used for the identification of incoming and outgoing
goods by placing bar codes at strategic locations.

• Barcoding is a form of keyless data entry facilitating automatic

identification and data collection.
Standard markings that can be read by automatic or handheld scanners that
allow for labor saving logistical activities for all supply chain members.
Bar Codes contain information regarding:
Vendor
Product type
Place of manufacture
Product price
BARCODING TECHNOLOGY
Bar Code System
Bar Code Reading
Bar Code

The advantages are:

• Using technology means lead to less mistakes.

• Saves time of receipts and issues.

• Saves manpower.

• Allows faster access to information on system.

• Improve customer service.

• Reduction in obsolescence and deterioration of stocks

The disadvantages are:
• The code must be very close to the reader.

• Distance is an important consideration.

• It would be difficult in high volume and high transaction term.

Example
 Barcode & License Plate # Support
Perform Complex Inventory Transactions
Multiple Packages and Single Unique Number
Products for All Information

Barcode Support Container and LPN* Support

• Automatically Track All • Supports Infinite Nesting Levels
Related Product Information • Perform Complex Moves via a Single Scan
• Capture All Information • Fully Integrated with ASNs
with a Single Scan

Reduces Cycle Time & Improves Improves Efficiency,

Accuracy Accuracy, and Tracking
 QR Code

• Unlike barcode, QR codes are considered as 2D.

• The QR code save data on the base of the black lines and the gap of

each white space.

• The QR code contains data in the entire ‘picture’. This means

that more data can be stored in a QR code as compared to a bar

code.
 QR Code

The advantages are:

• QR code are inexpensive.

The disadvantages are:

• The reader or scanner must be placed close to the code.

 Wireless System (RF Device)

RF Put away RF Pick 1

RF Pick 2
 Radio Frequency Identification (RFID)

Reader sends low level RF field and receives RF

transmissions from the RFID tag and passes the data to a host
system for processing

RFID tag/transponder contains data

Antenna transmits the RF about an item. The lag can be active, passive or semi-
signals between the reader and passive. The antenna of the tag transmits its content
the RFID tag to the reader

Host Computer

Source: AutoID Center

• Radio Frequency IDentification (RFID) makes use of radio frequency

waves to capture data in small, electronic read/write storage devices

called tags.

• The RFID technology process starts with a tag, which is made up of a

microchip with an antenna, and a reader with an antenna.

• The reader sends out radio-frequency waves that form a magnetic field

when they join with the antenna on the RFID tag.

• Data is accessible through hand-held and fixed-mount readers in real

time.
•A small chip containing the data will be inserted into the material
•The data will be transferred by radio frequency to the readers when the
material pass-by
•The reader will decode and check the radio signal before transferring to
PC systems
The advantages are:

• Reliability in heavy moisture and dirty environment.

• Greater flexibility in reading the tags in a wider scanning area.

The disadvantages are:

• RFID is expensive.
RFID’s Characteristics

 RFID Supports Read/write Operation

 RFID is not limited to contact operation

 RFID Tags Can Be Hidden

 RFID Tags are very Secure

 RFID tags are Read at a Faster Speed

 Multiple RFID labels can be read at one time, speeding up the data
collection process
RFID Enhance The Business Competitiveness

• Lowering Costs
• Increasing Revenue
• Decreasing Working Capital
• Reducing Fixed Capital
RFID Application

• Trace and Track transportation route of the product

• Identify the material
• Military
• Scientific Research (identify animal)
• Other
RFID-Initiated Shipping and Receiving
Process Transactions with No Manual Intervention

RFID (3)Interface to readers, clean

Middleware and filter data, then pass
IDs to application
(1)Load of pallets and / or cartons with (2)Drive load through
RFID Reader in (4)Access objects associated
RFID tags on each RFID Event
Receiving Dock with the ID's (e.g. LPN's
Processor
on ASN) then raise correct
Share RFID information with Business Event
your supply chain partners (5)Access associated
Application (6) Process the Business
using inbound and outbound source docs
(e.g. the PO’s APIs Event, (e.g. Receipt of
ASN pallet or carton)
ASN)
Response
(8) Putaway, (7)Confirm success or failure
& Exception
rescan or divert (e.g. trigger green light or
Handling
material sound buzzer)
Pick to Light / Pick by Light
 Pick to Light / Pick by Light

• A Pick Face consists of a display and operation unit where the picker

sees the required picking quantity and confirms it after picking by

pressing the confirmation button.

• Two buttons for quantity correction enable the picker to increase

or reduce the displayed quantities during picking according to the

indications contained in the order.

Pick By Voice
Pick By Voice

Pick by Voice, a further development of radio frequency picking, offers a

completely voice-based interaction between picker and system; thus the
picker’s eyes and hands are free for picking.
 Online operation in direct interaction with the warehouse
management system.
 Easy customization and operation.

 Completely voice-controlled guidance.

 Individual number of pickers.

 Combination of barcode scanner and screen input possible

 Up to 20% performance increase as compared to radio frequency.

Tracking Visibility
• Order visibility provides information for customer to know about their
order status.
• Order visibility information which for most cases include:
 Order number
 Customer reference number
 Tracking number
 Order manager contact information
 Billing information status
• Quotation
• Order receipt date
• Contract date, ship date, ship complete date, customer request date
 Conclusion

• Information is one of the vital resources which must be frequent,

timely, accurate, understandable and sufficient detail.

• The collection and collation of information is necessary due to the

high volume of data transacted in the warehouse.

• The warehouse now needs to use this information and technology to

organize the warehouse.