The ideal logistics approach states that a company should always know what they have in stock in a very accurate way. For some companies this is really impossible to measure, for example in construction businesses there are lots of material to be bought and perhaps more than one project going ahead at the same time.
Here in this Warehousing services article you will find described what the common mistakes are and what simple measures can help you to avoid mess.
It is important that you have an accurate file of what your purchases are. It doesn’t matter if you have a system or you hired Warehousing services, you need to set up a point of control in strategic places.
For example when a company needs something a purchasing order is generated. Then that purchase order goes to the supplier who will be delivered what it was demanded. Here you need a point of control. The supplier is not always going to deliver exactly what is says in the order. Lets say that some item are damaged, you don’t receive them and send them back. You need to create a note of this. So when the goods are delivered you need to create a receipt where it should state what is exactly what is entering to your storage space.
What many companies do is to modify their purchase orders in order to make them match with what it was delivered. This can create confusion because it will mean that you have to manipulate data from the past. It is better if you leave it as it is. Relate the receipt orders to the purchase order until they both match.
Then you also need a point of control when stock leaves your warehouse. You need to know where the stock is going. Perhaps is going to be used in the factory or in a project or perhaps is needed only as a loan from another project for being returned later in the week or the month. You also need to create a note here to indicate where, when and why is the material leaving your warehouse.
This system will also help you to have your accounts information up to date. When it comes the time to pay suppliers you will know exactly what they have delivered and how much money they need to pay. Many companies work on a credit basis and it is very important that the supplier is kept happy otherwise the credit facilities can be restricted if there are problems with payment.
Remember that all your documentation needs to be an open book for anyone to read it. It is important that all areas in a company share information.
Tags: Warehousing services