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Chapter 7 Report

Warehouse managers play a crucial role in advising on safety stock levels and managing inventory, including identifying obsolete stock for various disposal methods. Regular stock counts are mandatory, often requiring warehouse closure, while security is vital to protect both products and data from theft. Effective security measures include proper recording of inventory movements, authorizations for dispatches, and maintaining vigilance to prevent internal and external theft.

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74 views2 pages

Chapter 7 Report

Warehouse managers play a crucial role in advising on safety stock levels and managing inventory, including identifying obsolete stock for various disposal methods. Regular stock counts are mandatory, often requiring warehouse closure, while security is vital to protect both products and data from theft. Effective security measures include proper recording of inventory movements, authorizations for dispatches, and maintaining vigilance to prevent internal and external theft.

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katlic
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Stock management

• Warehouse managers are in a position to advise their inventory colleagues on levels of safety
stock and the specific movements and characteristics of particular stock items.
• This function is a major part of a company’s operation and the theories and practices are covered
in many books on the subject of inventory management.
• A warehouse manager can extend the normal classification to include non-moving and obsolete
stock together with identifying stock that may not require storage in the warehouse but can be
dispatched direct from the supplier to the end customer where the lead-time is in line with the
customer’s requirement.

The goal is to identify the items in the C to X categories and act accordingly. Obsolete or non-moving
stock needs to be analyzed and one of the following tasks undertaken:
• Return to seller if the contract allows.
• Sell to staff at a discount.
• Sell the item at a highly discounted rate either through normal channels or via
companies who specialize in selling overstocks and obsolete items.
• Assess whether it is cost effective to break the item down into its constituent parts.
• Donate to charities.
• Dispose of the product as cheaply as possible. This may incur charges but it will
release space to store other faster-moving product in its place.

Stock or inventory counting


• All warehouses are obligated to undertake some form of stock count.
• A full stock count usually necessitates the closure of the warehouse for a period of time when
all inbound and outbound movements are suspended.
• The count is normally carried out at the company’s year-end.

Security
• Security of product within the warehouse is paramount.
• The warehouse manager is responsible for the integrity of all the products under his or her care,
whether they are owned or stored on behalf of other companies as a third-party contractor.
• This can be achieved through good housekeeping, the use of security cages and carousels for
storage, and through vigilance by staff.
• Poor security costs companies in lost inventory, higher insurance premiums and personnel
turnover.
• Loading docks and platforms tend to be the most vulnerable areas – they’re very easy places for
a thief to remove stolen property, often in partnership with an outsider, a delivery driver for
example.
• Security systems tend to be designed to protect your facility from people breaking in – but
many thefts are perpetrated from within.
• Not only is product security important but also the protection of data.
• Protecting data from being stolen or copied is also paramount.

The core attributes of security within a warehouse are as follows:


• appropriate recording of inbound and outbound products;
• authorizations for all despatches;
• accurate audit trails;
• regular stock checks;
• the use of appropriate storage equipment; and
• vigilance.

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