Manual

Certificate IIin

Retail

Learning and Assessment Material

SIRXINV001A

PERFORM STOCK CONTROL PROCEDURES Contents

4What Does Receival Involve?.What about stock integrity?.4What documentation is involved with receiving stock?...5Delivery Note.5Invoice.5Manifest.6Consignment note6Internal packing note6Electronic data systems..7The receipts area.7Physical Checking8What do I do if deliveries are incorrect or damaged?.9Do some goods need to be handled carefully?9Putting goods away10Where are the new lines put?..10Stock location..10What is meant by stock rotation?11Stocktaking..11Periodic11Ongoing12Physical stock takes..12One person stock takes13Two person13Counting system13How do you organise a stock take?.13Things to consider when planning or organising a stock take14What are stock discrepancies?.14How do you know there is a stock discrepancy?...15Types of record keeping discrepancies..15The impact of discrepancies or variances on operations.16How do you deal with discrepancies?.16Workplace procedures for reporting major discrepancies16Why does shrinkage matter?17How do you adjust inventory records?17What is an inventory report?.17How do you maintain stock levels?.18How do you re-order stock?..19Communicating with purchasing and management about re-ordering.23What documentation is required for re-ordering?..23Why is correct packing important?..23Where and how are packed stock items placed for despatch?..24How should Despatch documentation be completed and used?..25What must be done when complaints are received?25TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS.26Assessment task27ASSESSMENT MODE A - Oral questioning.28ASSESSMENT MODE B - Skills observation checklist29Participant survey of materials.33Suggested Answers..34

( Hinson Institute of Training

SIRXINV001A PERFORM STOCK CONTROL PROCEDURESElement of competency:

1. Receive and process incoming goods2. Rotate stockWhat Does Receival Involve?

Arrival

Unloading

Unpacking

Checking

Entry in System

Goods may arrive at the warehouse in many ways. They may arrive on trains, aircraft or trucks, and they may be packed in containers, cartons or simply on pallets. Road trucks are the most common form of transport for the distribution of goods. Some road trucks are enclosed containers and are loaded/unloaded from the rear. Other types are loaded/unloaded from the side.

What about stock integrity?

At receival it is important to make sure the quality and quantity of goods is what is expected. Goods must be received properly and put away in the correct place. If you dont get it right here the whole supply chain is incorrect. It is also very important that the integrity of stock is also protected.

The warehouse where you work is a critical link of goods exchange. Goods exchange involves many different groups:

Suppliers

Purchasers

Carriers

Distribution Centres

All these groups work together in a system to guarantee the customer gets what they want, when they want it and at the right cost. Receival at a warehouse must ensure that goods flow through the warehouse as smoothly as possible, not making mistakes and not causing delays.

What documentation is involved with receiving stock?

To make sure the flow of goods through a warehouse is smooth and effective, we need a method of recording and tracking goods between all groups involved in the exchange process. We need a way to show that suppliers, purchasers, carriers and distribution centres have all played their part correctly. This is necessary to show exactly what goods have been given to who, and as evidence of work and receipt of goods on which payments will be based. Individual warehouses will have different systems for recording the movement and storage of goods. These systems can be manual or computerised. Making sure the system works involves many different types of documentation.

Delivery Note

A delivery note is usually supplied with the goods at the time of delivery. It will state what the supplier has actually delivered to the store. This is probably the most important receipt document of all. Goods delivered are checked against the delivery note to confirm the delivery is correct.

Invoice

Invoices are used for the same purpose as the delivery document. However, invoices are used in situations where the distribution center actually purchases the goods rather than just distributing them for somebody else. Goods received are checked against the amount and description stated on the invoice. The invoice may contain:

A single item or

Many items.

Invoices are normally:

Sent with the load of goods.

Invoices are a very important document as they are

Used to bill the receiving company.

Great care must be taken to make sure that goods received are accurately checked against the invoice.

Manifest

Some warehouses are Care Takers of goods, (that is they do not actually purchase the goods). These warehouses receive goods using a document called a manifest. The manifest is similar to an invoice. They are used mostly when importing or exporting goods. The information on a manifest is used to check the delivery and make sure all the goods consigned have arrived. A Delivery Note, Invoice or Manifest are used at different times to check that the goods delivered are the right goods and the right quantity.

Consignment note

A consignment note is used when the delivery is contracted out to a private carrier. They show what is to be receipted and are usually issued by the carrier of the delivery, as a record of what has actually been sent.

In some cases, the goods on a consignment note may be checked with other delivery documents (invoice, manifest etc). A consignment note usually does not give a product description, but will give information like how many boxes, pallets, bags, bales etc. The important sections are:

Pallet control information.

Number of items.

Description.

Receiver.

Signature of receiver.

If you are not sure why the points listed above are important to receiving goods, please discuss consignment notes with your supervisor.

Internal packing note

The internal packing note is used to carry out a more detailed check of the stock delivered, once the outer containers, such as cartons, drums, boxes and pallets have been broken down and the stock is ready for inspection and then storage. The packing note lists what is actually within each unit delivered. It should give specific information regarding quantity, type, size, specifications, colours etc.

Electronic data systems

Many warehouses today use special computer systems in the receival of goods. This is called an automated system. Automated systems cut down on paper work and are very quick when it comes to checking and transfer information. The main parts of an automated system are:

Consignment notes sent through a computer as proof of delivery.

Barcodes used on consignment notes.

Bar-coded delivery labels.

Speedy pricing.

Sometimes with automated receival systems, computers can be used to provide extra information. Daily dispatch details can be looked at for numbers of:

Deliveries

Amounts

Weights

Money charged

The receipts area

The receipts area is a special area within the warehouse for the receival of goods. It is a separate area away from all existing stock. Sometimes this area is called the quality control area or QC. This is because all incoming deliveries must be carefully checked before the goods are mixed with stock on hand.

The receival area is usually located close to loading and unloading docks. This helps to save handling time and allows forklifts, trolleys etc, to be used. The receival area should be large enough to allow goods to be carefully checked.

When doing a first check, look for pallets with product overhang or wet and damaged stock. Some warehouses only accept single item pallets. If this is the case in the warehouse where you work, pallets with mixed items will also need to be labelled Return. If mixed pallets are accepted, then they should be referred to the receival supervisor.

It is also important to check any security or quality control devices. In many warehouses, loads or containers that are delivered must be sealed. This may be done using some type of plastic tag or even a key and lock system. These load security procedures are used to prevent consignments from being tampered with during transportation.

When checking a load, if you notice that the seal or lock is broken, you should immediately notify your work supervisor. Usually the carrier is asked to verify the damaged seal and the sender or client is notified before the stock is checked. In some situations it may be warehouse policy to actually collect photographic evidence of damaged deliveries.

Physical Checking

After goods are unloaded, physical checking is carried out to make sure the goods delivered are what is described on:

Manifests

Consignment notes

Invoices.

Deliveries are checked against delivery documentation to make sure:

The total count is correct.

Individual product count is correct

Any damage is recorded and reported immediatelyGoods may be checked by:

Counting

Weighing

Measuring.

Quality may be checked by:

Colour

Size/Weight

Specification

Packaging.

Best by dates.

Once the goods have been checked, they are entered into the system and recorded as goods in stock.

What do I do if deliveries are incorrect or damaged?

A damage or shortage report must be completed when:

Goods arrive damaged

A shortage occurs in delivery

Goods fail to arrive at the stipulated time.

There are also correct procedures for cases of wrong and surplus delivery.

Do some goods need to be handled carefully?

Sometimes cartons come with special signs or instructions on how they should be handled. Care must be taken because these instructions relate to the goods inside the cartons. Failure to follow carton instructions may result in damage to the goods. (In the case of dangerous goods, workers may be injured if these instructions are not followed).

Shrink/stretch film wrapping is commonly used to secure loads. It may be used at times when the load will not tolerate tight or heavy strapping, or when loads include unusual shapes. Shrink-wrap can also be used for pallets that contain a lot of small items. It may not be suitable for loads that are heavy, or those, which require heavy holding power.

Clear and black wrap is available. Black to conceal the contents from the public eye. E.g. TV sets.

In some circumstances you may be required to remove the shrink-wrap before the goods are put away. However this is unlikely in cases where loads are unstable.

Putting goods away

Once the goods have been checked and accepted as scheduled, they are formally entered onto the stock on hand record system. This system is used to produce a Put away label. Manual labels can also be used to trap the inventory but do not produce a put away label.

Not all computer systems can provide information such as locations of goods. If your warehouse does not use locations for slotting of goods, ask your supervisor to explain how do you know where products are?

Of the many different lines in a warehouse, some will move through the system quicker than others. Generally, goods are classified as fast moving, medium moving, slow moving. What and how many people buy in the supermarkets and shops will determine how fast any goods move through the warehouse system. Most times it is necessary to keep a reserve supply of fast moving goods. Reserve items are usually stored in a distinct location and are often called piggy backs, which means that many pallets are stacked one on top of each other. Reserve items are stored on the high slots on most occasions.

Where are the new lines put?

New lines into the warehouse can be identified by a new stock identification label. This label is the same as a put away, but it does not have a location destination.

Stock location

All types of goods ranging in various shapes/sizes are stored in warehouses. As mentioned previously in this section, some goods move faster through the system than others. Some warehouses will also store flammable and dangerous goods. Here are some questions to be answered before storing stock:

What type of stock?

How fast does it move?

Is it dangerous?

Is it large or small?

Is it easy to stack?

Does it require cold storage?

Sometimes in more advanced warehouse systems, the computer system automatically slots new goods into storage based on the criteria above.

What is meant by stock rotation?

Most warehouses have a plan to make sure that old stock is shifted first. In your warehouse job, it is important for you to keep in mind that many products (especially consumables) cannot be used after a certain time. With foodstuffs, this will be the best by date. Some stock moves faster than other stock in a warehouse.

There are terms used to identify stock rotation systems in a warehouse. These terms are:

First In First Out (FIFO)

This means stock that comes in first is despatched first.

First In Last Out (FILO)

Under this method the stock received first is the last to go. Stock rotation is important when putting goods away. In some instances pallets may need to be rearranged before putting fresh stock away. You may have to shift pallets from reserve slots to pick slots or you may have to move stock forward that already exists in pick slots.

Stocktaking

Stocktaking is the process of physically checking the quantities and condition of goods held in the warehouse. There are two main types of stock takes:

Ongoing

Periodic (monthly, quarterly, annual).

Periodic

Periodic stocktaking involves counting all of your stock at the end of a given period, usually the end of the financial year. When doing an annual stock take, the warehouse might need to be closed for a certain period of time so that all stock can be checked. If this happens, the production department will have to be informed well in advance so that they can stock up on supplies before the stock take.

Ongoing

Nowadays, with all the computer systems operating in warehouses, a stock take can be carried out at any time with little interruption to productivity. Some companies do a monthly stock take, using their computer to show the amount of stock that should be held, while the warehouse staff physically checks the stock against the computers figures. They may even decide to do a weekly stock take on high turnover items. Other companies do twice yearly stock takes which are done manually, using the computer to assist the count while warehouse personnel physically count each item on the stock take. The physical count can be checked against the figures on the computer system.

Physical stock takes

Periodically, it is important to physically check inventory for three reasons:

To determine whether inventory records are accurate

To confirm physical quantities so they can be valued for financial

Accounting purposes

To determine if effective control is being maintained.

Stocktaking can be a laborious and time consuming activity, but it can be made more efficient if you:

Count items of highest value and importance approximately every three months, and items of low value and importance about every six months

Count high value and important inventory items by units, and low value inventory in bulk by containers or weight

Count inventory when it has reached re-order levels as quantities will be low and less counting will be required

Use experienced and responsible staff on high value and important items and less experienced staff on other items.

When doing a physical stock take, your method of counting will depend on the number of workers you have available.

One person stock takes

One person counts the goods by description and quantity from start to finish by:

Using a blank piece of paper to record all details

Double-checking the figures by repeating the stock take in reverse order without using the first stock take figures as a guide

Comparing the figures on both sheets and double checking any differences

Comparing findings with the computer or paper based records

Recording any adjustments or transfers.

Two person

This method is the same as above except one person counts while the other writes. When counting the second time, you should swap roles so that the writer is now counting and the counter is now writing. Compare this count with the previous count and double check any differences.

Counting system

The computer system will be used to show the quantity of stock that should be held. However, this should only be used as a guide because all stock will have to be checked physically with stock cards for all items. In some warehouses the stock is stored so that it can be counted with ease in packs of a set quantity, in boxes with set numbers in it, or on pallets of set amounts. Real time information from computers is critical for accurate stocktaking and reporting.

How do you organise a stock take?

Organising a stock take is important not only to your warehouse and its staff, but also to your customers. Customers need to be notified well in advance if there is going to be a disruption to supply. As discussed earlier, the type of stock take you do depends on the policy of your company and the resources available. Company policy will dictate whether you have an annual stock take where the warehouse shuts down for a period of time, or ongoing cyclic stock takes, with less interruptions but a little less accuracy.

Things to consider when planning or organising a stock take

When planning a stock take you need to:

Have sufficient resources to conduct the stock take

Draw up a stock take program and get everyone, including the finance department and auditors, to agree to it

Prepare stocktaking sheets, cards or other documents in advance

Instruct everyone involved about his or her duties

Inform customers so that they can stock up during the stock take time.

What are stock discrepancies?

A discrepancy occurs when there is either more or less stock than the amount recorded. This might be because there is an incorrect quantity of stock or because the records are incorrect. When there is more stock than recorded there is a stock surplus. When there is less stock than recorded there is a stock deficiency. Deficiencies are often referred to as shrinkage. Discrepancies can be caused by:

Data entry errors

Under or over supply

Pick errors

Theft

Waste by:

- Damage

- Incorrect storage

- Contamination

- Expired use-by dates Buyers errors

Coding errors

Changes in the number of items in a pack. For example from packs of 12 to packs of 10

Stock returned from customers for replacement

Incorrect checking

Work in progress

Incorrect allocations.

How do you know there is a stock discrepancy?

One way to identify stock discrepancies is to compare stock take results with inventory. Sometimes you do not need to wait for a stock take to identify discrepancies. For example, shrinkage due to damage can be recorded as soon as the damage occurs by filling out a form or immediately updating the inventory.

Companies involved in quality assurance systems must record all damage and disposal details on a non-conformance report. No inventory control system is perfect and some discrepancies between physical quantities and inventory records can be expected. Where this happens, the inventory records should be altered to show actual physical quantities.

However, it is a good idea to re-check the count first before altering records. Major discrepancies or a high incidence of minor discrepancies could be an indication of breakdown in control and should be investigated.

Many businesses take careful steps to guard against theft, but inventory shortages can arise for a variety of other reasons. Frequently, shortages are because of inadequate receiving, dispatch-in, and issuing procedures and controls.

Types of record keeping discrepancies

Record keeping discrepancies might include:

Inaccurate data entries

Keyboard mistakes

Human error

Inaccurate documentation:

- Receiving or packaging slips

- Despatch documents.

The impact of discrepancies or variances on operations

Discrepancies or variances can cause:

A need for more stock takes or cyclical counts

Inaccurate records for:

- Pick slips

- Inventory lists

- Customer inquiries about stock availability

- Re-ordering procedures.

How do you deal with discrepancies?

If the discrepancy is large, it is worth investigating:

Examine stock cards, computer records and figures to check for calculation errors

Verify the correct quantity of the discrepancy

Check basic documents such as receipts, issues, transfers, delivery documents, return to store notes, etc

Examine previous stock take results to see if there were any discrepancies

Make inquiries into other departments in case there has been an issue or return to the warehouse without documentation, outside normal working hours.

Workplace procedures for reporting major discrepancies

Your workplace will have its own procedures for reporting major discrepancies. Some of the things you will need to ask yourself when reporting major discrepancies are:

Should the report be made verbally or in writing?

What documentation should be used? For example damage reports, stock adjustments, stock transfer, quarantine reports etc.

What personnel or departments should receive the report?

Why does shrinkage matter?

Shrinkage can have an effect on profit. For example if a pallet load of goods is damaged because of bad housekeeping, the cost of that pallet of goods will come straight out of the company profit and will also have an impact on insurance premiums.

How do you adjust inventory records?

You may find that after the stock take your inventory records do not match the amount of stock that is held. If so you will have to adjust your records. You can do this by:

Manually adjusting it on the cards

Producing an audit report

Reviewing all journal adjustments

Adjusting the amounts on the computer.

Stock can also be reviewed on a monthly basis and the marketing department will write down the value of the stock, for example clothing garments that might have gone out of fashion. The stock will then be sold at a sale price. Other stock can be looked at during the year, and written down and off-loaded at sales. These will all cause the inventory report to be adjusted.

What is an inventory report?

An inventory report tells you what stock is available and what stock is required. This can be achieved in different ways:

With an on-line computer display

By numbers on bin cards

By running a range of reports on the computer.

How do you maintain stock levels?

Stock levels need to be maintained so that you can fill orders with a turn around time that satisfies customers. On the other hand, you do not want to hold excess stock unnecessarily. Some of the disadvantages of holding excess stock are:

Having money tied up in inventory

Operating expenses, rent, rates, repairs, heating, cooling, lighting, etc

Valuable space taken up by extra storage

Chance of stock becoming obsolete or expiring

Deterioration of stock

Insurance cost of stock

Stock checking

Recording of stock.

However, there are also some advantages to holding large quantities of stock:

You may receive discounts from suppliers for ordering large quantities

You have a buffer for when delivery cannot be exactly matched with daily usage

You reduce the risk of being unable to fill orders if there is a breakdown or interruption to supply

You can cash in on fluctuations in the price of the commodity it can be an advantage to have a large quantity of stock if the price is about to rise

Some items appreciate in value during their time in storage, (for example wines and spirits).

As you can see, it is difficult to run a warehouse on a very tight basis and still take into account all of these needs. As the warehouse supervisor you will sometimes have to make decisions about required stock levels.

When deciding what level of which stock lines should be kept, you will need to balance the advantages of holding large quantities of stock against the disadvantages. The level at which you decide stock needs to be replenished will depend on a number of factors. Besides the advantages and disadvantages discussed previously, you will also need to consider the points below:

Minimum re-order quantities or standard units of issue (pallet load, items per box, etc)

History of demand for a product

Legislative demand to hold stock (e.g. spare parts) even if there is little or no customer demand for the product

Seasonal demand for a product

Frequency of delivery or availability of supplies, especially from overseas (fluctuations in the money market)

Taking care not to carry too much stock in high value items

Taking care not to carry too much stock in items that might become obsolete (computer chips or some machine parts) or if the item has an expiry date.

Many companies have a computer system built into their stock control that is activated when stock needs to be purchased. This can be done on a weekly or monthly basis, or at any time that suits the organisation.

Other companies have a system that will requisition stock on a day-to-day basis and again this will automatically raise the orders for the purchases.

How do you re-order stock?

To run an efficient and profitable warehouse, you should be aware of all the re-ordering systems used by your company. There are two main types of re-ordering systems:

Push systems

Pull systems.

Push systems include fixed quantity and fixed period re-ordering. They have been in use for a very long time.

Pull systems include Just in Time (JIT) and KANBAN or ticket triggering. JIT and KANBAN systems are more recent and come from quality philosophies. They have been introduced in many places to try to increase efficiency by reducing the amount of warehouse stock.

Just in time

Just in Time (JIT) comes out of a quality philosophy. Its aim is to have the right goods in the right place at the right time. This system increases efficiency and reduces waste by saving on unnecessary storage. It takes the view that held stores act as a buffer in times of variation, so that if you cut out this variation you will not need the buffer of extra goods in storage. This system will not work if you have a high level of defective or reject products.

The aim of JIT is to keep inventory small. This should save the company money through not having money tied up in stock, the associated costs of insurance, and the risk of stock going out of date. It also reduces the need for large storage areas in warehouses. However, JIT is not very practical if the stock is coming from overseas and time frames cannot be guaranteed. In a JIT system the warehouse aims to have stock come in one door and out the other, with very little being held in storage.

Some features of a JIT system include:

It takes about 5 to 7 years to implement

It minimises paperwork because you usually order standard quantities in standard containers

It requires more frequent, smaller deliveries than traditional systems

It is helpful if the suppliers are located close to the distribution centre, because of the frequent small deliveries however, this is not essential.

Co-operation from suppliers is a key step to implementing a JIT system. Reliable supplies are the key to the whole system. JIT usually requires you to develop long-term relationships with fewer suppliers rather than short-term relationships with many suppliers.

Even if your company does not operate a JIT system, customers may still want you to deliver to them on a JIT basis. For example in retail, high rental costs and strong competition means that shops have smaller store rooms, and use more space for customer service. The days of supermarkets with large

storerooms out the back are gone. This means that retailers need to receive goods on a JIT basis, and put them straight onto the shelves instead of storing them, as they once would have. These demands from retailers put more pressure on warehouses to understand JIT and act as JIT suppliers whether they intend to adopt it for their operations or not.

Kanban

KANBAN is a pull system that uses cards or tickets to let the supplier know that more stock is needed. KANBAN is a technique that is used together with JIT. You can have JIT without KANBAN, but you cannot have KANBAN without JIT.

With the KANBAN system, the customer sets the date of delivery. The work plan works backwards from this date to set the dates for shipping, final inspections, completion, assembly and start of the project. Each part of the project is pulled by the customers delivery date.

This means that it is not until the customer requests a product that it starts moving through the warehouse.

Fixed quantity re-ordering

This is the most conventional way of identifying when stock needs to be re-ordered. It relies on defining the following stock levels for every product kept by the warehouse:

Minimum stock level the smallest amount in the warehouse to serve the needs of the customer

Ordering stock level the level at which an order is placed. This level is held to supply customers while waiting for the delivery of new stock

Hastening stock level the level at which you need to hurry along your supplier

Maximum stock level this is the maximum amount of stock held to meet your customers needs.

You should not hold more than maximum stock level because if your customers do not order it, it can:

Go out of date

Deteriorate

Become obsolete

Tie up company money with stock that is just sitting on the shelves.

Quantities set for each of the levels needs to be reviewed regularly. Otherwise the levels go out of date and the system becomes ineffective. Different items will reach ordering levels at different times. This means that orders are placed for one or a few items at a time and the period between orders can be quite irregular.

Fixed period re-ordering

The fixed period re-ordering method is a less conventional way of identifying when stock needs to be re-ordered. This system involves ordering set amounts of goods to be delivered at set periods of time. For example, you might order 10 cartons of product X to be delivered on the first of every month. For this system to work you must be able to estimate how much product you need over a pre-determined period of time. This estimate is usually based on past patterns of use. The advantages of this system of re-ordering are:

Stock is delivered automatically without you having to verify what the current or proposed stock levels are

You can pay as you go

You dont have to store excess stock

You can often get a good price for the product.

The main disadvantages of this system are:

You may run into stock shortage or overstocking

Stock may become out of date, obsolete or deteriorated.

The fixed period re-ordering system is dependent to the type of industry and product. It is commonly used in blanket orders placed on suppliers and is regularly used for incidental supplies such as stationary, which do not affect your customer.

All ordering systems are subject to factors such as:

Perishable or non-perishable items

Seasonal fluctuations

Industrial stability

Technological advances

Changing customer attitudes

Rate of inflation and likely price increases

Availability of discounts for large orders

Restrictions on supply

Lead times.

Communicating with purchasing and management about re-ordering

The amount of capital tied up in inventory will always have to be carefully balanced. As the warehouse supervisor you should work very closely with the purchasing department at all times.

Company policy will dictate the amount of inventory that should be held to maintain supply to the customer while not overstocking.

Purchasing will be working with senior management to decide on the amount of stock needed to keep the customers supplied. During abnormal times you will have to provide purchasing with up to date figures on the quantity of stock held and whether more stock needs to be brought in. The importance of your accuracy in running the warehouse is crucial.

What documentation is required for re-ordering?

It is the warehouse supervisors job to regularly check the quantity of stock held and to assist the purchasing department with re-ordering. The warehouse supervisor will have to raise a requisition which will show what stock is required, and its colour, size quantity and so on.

The requisition will then go to the warehouse manager who will check that everything is correct, and forward it on to the purchasing department. The purchasing department will ask the supplier if the stock is available and when it can be delivered. When all of these issues are settled, they will then raise a purchase order and number before sending it off to the supplier. Other companies may have a different re-ordering system from the one mentioned above.

Why is correct packing important?

Stock items will need to be packed properly for customers to receive their goods in good condition. You will need to make sure that all stock items are packed securely and protected against damage during delivery. If you are not sure which packing methods you should use to guarantee that stock items are securely packed, you should ask for help. Staff working for delivery companies are usually keen to advise on the correct packing methods to be used. If customers receive goods in a damaged or insecure condition, a bad impression of your work and your company will be given. This will damage the working relationship between customers and your company. Customers may then decide to place their orders with other warehousing companies.

Your warehouse will use different packing methods or packing materials to make sure that stock items are properly packed. One of the worst things that can happen in the delivery process is that items are damaged because they were not protected properly by the correct type and amount of packing. You should also use packing labels and stickers to tell people if the stock is fragile or easily damaged. Place these stickers where they can be easily seen. Remember that the person delivering the stock may not know that it can be easily damaged.

When the picked stock items have been properly packed, they will usually need to be placed in stacks waiting to be despatched to customers. You will be required to stack packed stock items so that they will not become damaged by other packages. You must also think about the safety of your workmates and yourself when stacking packed stock items, especially if there is a chance that packages may fall or block warehouse floor space.

Where and how are packed stock items placed for despatch?

Placing packed stock items in the correct location and sequence is an important part of your daily work routine. Packed items will need to be placed in correct sequences for loading, despatch and unloading (at the delivery point). You must understand the requirements of your company and its policy on stacking packed goods waiting to be despatched. The placement of packed items will depend on:

The urgency of the order

The delivery methods required

The delivery address

Characteristics (types) of the packed items.

Some customers will need all their stock delivered at once, whilst others will not be able to handle deliveries in large quantities.

Packed items will also need to be stacked in the correct order for unstacking, so that the items to be delivered first can be removed from the delivery vehicle first, without the need to re-arrange the load. For example, you should not stack items so that the first item to be delivered is located at the bottom of a stack.

You may be able to improve your service to customers by understanding any special requirements that have been set up for delivery of packed stock items. Some companies will only be able to accept delivery of stock items at certain times, perhaps due to special refrigeration requirements. Others may only allow delivery to be accepted by certain members of staff, so a telephone call before delivery may be required. You will improve customer satisfaction if you despatch stock items, taking account of these special needs.

How should Despatch documentation be completed and used?

Accurate completion of despatch documentation will enable packed stock items to have the best chance of reaching customers as soon as possible after leaving the warehouse.

You must make sure that all delivery documentation is complete and accurate. The most important piece of information in the set of dispatch documents is the customers delivery address. You must provide all details of the address on the labels and paperwork.

You must also be sure of where the customer wants the goods to be delivered. The customers mailing address may not be the same as the delivery address. The customer will indicate on the order where they want the goods to be delivered.

When despatch documents are being filled in, all reference numbers on every document will need to be written accurately and clearly. The reference numbers should be the same on all related documents, so that packed stock items can be traced if necessary. For example, the same consignment number will appear in each Consignment Note sticker, which is then placed on every container of stock items delivered to a customer. This consignment number will then appear on the single Multi-Parcel Address Label used for despatch of these containers.

What must be done when complaints are received?

If a customer has a complaint about the despatch of an order, you must provide your supervisor with the information needed to deal with the complaint. The information you will need to give quickly will be:

The packing date

Packing method

Copies or records of despatch documentation

Any other information associated with the order.

You should have written the correct delivery address and reference numbers on all despatch documentation. This will usually give your supervisor the details needed to follow up any customer complaints.

SIRXINV001A PERFORM STOCK CONTROL PROCEDURES

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS

The Trainee will be required to demonstrate competence on the job, in practical demonstration; observation, question/answer and role-play situations, incorporating verbal questions and written work, including completing workplace forms, either to the RTO Trainer or Supervisor, under the guidance of the RTO Trainer.

Element of competency:

1. Receive and process incoming goods2. Rotate stock1.What documents are used to receive goods into the workplace?

2.How are goods checked?

3. What do you do if there are too few or too many goods delivered?

4. Why are stock takes performed?

Assessment task

Demonstrate for your workplace assessor, your ability to safely and efficiently:

Receive and process incoming goods Rotate stockProvide your workplace assessor with copies of any documents used for this task where appropriate.ASSESSMENT MODE A - Oral questioning

Trainee name:

Name of Workplace:

RTO Trainer name:

Unit/s of competency:SIRXINV001A

Unit Name:PERFORM STOCK CONTROL PROCEDURES

Date of training/ assessment visit:

Instructions: In addition to written answers provided above, the trainee is required to provide verbal answers to the following questions that will be asked by the RTO Trainer. Read the questions prior to the Trainers visit, and be prepared to answer them, obtaining help where necessary.

Did the trainee satisfactorily answer the following questions:YesNo

1. What documents are used to receive goods into the workplace?((

2. How are goods checked?((

3. What do you do if there are too few or too many goods delivered?((

4. Why are stock takes performed?((

5. Why do you need to rotate stock?((

6. What do you do with old or out of date stock?((

The trainees underpinning knowledge was:

Satisfactory (

Not Satisfactory (

Notes/comments:

Question 1:

Question 2:

Question 3:

Question 4:

Question 5:

Question 6:

RTO Trainer signature:

Trainee signature:

Date of assessment:

ASSESSMENT MODE B - Skills observation checklist

Trainee name:

Name of workplace:

RTO Trainer name:

Unit/s of competency:SIRXINV001A

Unit Name:PERFORM STOCK CONTROL PROCEDURES

Date of training/ assessment visit:

During the demonstration of skills, did the trainee:YesNoN/A

Maintain cleanliness and orderliness in receiving bay according to store policy and procedures(((

Unpack goods using correct handling techniques and equipment according to store policy(((

Remove and promptly dispose of packing materials according to store policy and relevant legislative requirements(((

Check incoming stock and validate against purchase orders and delivery documentation according to store policy and relevant legislative requirements(((

Inspect items received for damage, quality, use-by dates, breakage or discrepancies and record according to store policy(((

Record stock levels on store stock systems according to store policy(((

Rotate and store stock according to the first in first out (FIFO) principle(((

Dispatch stock to appropriate area or department(((

Apply stock price and code labels when required according to store policy(((

Carry out stock rotation procedures according to store routine and policy(((

Perform store code checking and reporting procedures, including recording of waste and markdowns(((

Place merchandise to achieve a balanced, fully-stocked display appearance and promote sales(((

Place excess stock in storage or dispose of according to store policy and legislative requirements(((

Maintain safe lifting, shifting and carrying techniques according to store OHS policy and legislative requirements(((

The trainees performance was:Not Satisfactory(Satisfactory(

Feedback to trainee:

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Trainee signature:

RTO Trainer signature:

I confirm competence for this unit SIRXINV001A _________________

(Manager signature)

_________________

(Date)

Trainee Name: ____________________________________Supervisor signature: _________________________________

Company: __________________________________________________________________

Date: ______/______/200____Certificate: ( II

( III ( IV in

( Business (Office Admin/Admin)

( Civil Construction ( Extractive Industries

( Food Processing

( Hospitality

( Process Manufacturing ( Retail Operations

( TDT (Road Transport)

( TDT (Warehousing)

( Telecommunications (Call Centres)

( _________________

List below the times allocated to Off-the-Job training for: SIRXINV001A Perform stock control proceduresDateActivity

codeDurationDateActivity

codeDurationDateActivity

codeDurationDateActivity

codeDuration

Activity Code

1. Read self-paced guides2. Developed knowledge of use and safety requirements

3. Met with Workplace Coach4. Worked on assessment tasks

5. Discussion on phone6. Discussed assessment tasks

7. Researched store policy and procedures8. Researched legislative requirements

9. Researched workplace policies and procedures10. Researched industry codes of practice

11. Observed other staff member/s undertaking stock control procedures12. Performance appraisal

13. Other research14. Read relevant industry publications

15. Staff training16. Talking to the supervisor

17. Complete appropriate paperwork relevant to task 18. Other: (specify) __________________________________________

Participant survey of materials

Unit code: SIRXINV001A Unit name: Perform stock control proceduresDate.. Instructions:

Please complete the questionnaire by circling the one number that best describes your answer to each question. Please read each question carefully. For mailed surveys, place the completed questionnaire in the enclosed reply paid envelope and post it back within seven days

Q1.Thinking in general about the material you were given for this unit, how would you rate it overall?

Circle only one answerPoor ....1

Fair ..2

Good ...3

Very Good ..4

Excellent .....5

Dont know ........6

Q2.How strongly do you agree or disagree with the following statements about the unit material?

Circle one answer only for each statement

Strongly DisagreeDisagreeNeither Agree nor DisagreeAgreeStrongly AgreeDont know / NA

a. The layout of the reading material made it easy to use/read123456

b. The layout of the assessment material made it easy to use/read123456

c. The font size of the material was large enough123456

d. The reading material assisted me to complete the assessment123456

e. The material was easy to understand123456

f. The graphics/pictures were useful123456

g. The graphics/pictures were sufficient in number123456

h. The graphics/pictures were legible123456

i. The materials was free from typing errors123456

j. The material was relevant to my job/workplace123456

Comments: Please expand on the above points if you rated any of them less than 3

__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Suggested Answers

SIRXINV001A Perform stock control procedures1. What documents are used to receive goods into the workplace?

Delivery note

Invoice

Manifest

Consignment note

Internal packing slip

2. How are goods checked?

Counting

Weighing

Measuring.

3. What do you do if there are too few or too many goods delivered?

A damage or shortage report must be completed.

4. Why are stock takes performed? To verify stock levels

Identify shrinkage

Financial reporting

Stock rotation

Identification of damaged stock

Clear out of old or redundant stock etc.

Competency Record - SIRXINV001A

After assessment the assessor, the supervisor and participant should sign the competency record. If competency is not achieved at the first attempt, strategies to address the performance gaps need to be identified and a time for re-assessment organized.

Assessor Comments

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

_____________________________________________

ValidSufficientAuthenticCurrent

( ( ( (

The participant is competent has shown competence in all of the following elements:

Receive and process incoming goods

Rotate stock

___________________________________ Date_________

___________________________________ DATE_________

___________________________________ DATE_________

Date for reassessment: ___________

Assessment Strategies

Current Competencies

Oral/written questions

Activities

Workplace project

Supervisor/3rd party report

Self-Assessment

Other

The evidence supplied is:

Trainee Signature:

Supervisor Signature:

Trainer Signature

The Trainee is

NOT YET COMPETENT:

Strategies to address gaps in trainee performance:

SIRXINV001A Perform stock control procedures January 2008 Version 1 Page i of 34SIRXINV001A Perform stock control procedures January 2008 Version 1 Page iii of 34