How to avoid stock discripency in despatches

[JP]

Hi ED,

This is JP. I am working in one of the automobile company parts
distribution centre. The warehouse area will be 8000+Sqft. We are
using the some software for material recept, picking and despatches.
We are manually putting material into bins as ason material comes and
manual picking while desapatches. We are regularly getting stock
variation/discripencies/excess/stock in the despatches. Now a day's
this issues are close to high nos.

How can i avoid/reduce this discripencies. Is there any system
controlled software available.

Pls help.

Thanks..
JP

[Nasir Awan]

Dear JP,
 
Are you following up with RFID - Barcoding?
 
If not then you may start numbering each part or batch for a strong control over nos.
 
Good luck

> Date: Sun, 30 Nov 2008 23:08:58 -0800
> Subject: [lscms] How to avoid stock discripency in despatches
> From: Jyot...@gmail.com
> To: ls...@googlegroups.com

[Karim]

HI JP,

 

You could increase your cycle counting frequency. In doing so, discrepancies noted will have shorter time to investigate and you may zoom down to the nearest picked parts.

 

Best Regards

Abdul Karim Bin Md Hassan

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> </html

[Leonard]

Dear JP,

 

Besides system implementation, there are a few things to do (in short, based on personal experinces):

 

Taking your inventory seriously from a top down approach from management - managament must come up with a strong support strategy which emphasises on inventory control, as inventory accounts for between 70-95% of the organisation's cost. When management takes inventory seriously, so will the operations people, when handling the day to day issues.

 

As mentioned by Karim - increasing your frequency of cycle counting is one However, ensure that all of your inventory is counted at twice a year.

 

Set realistic target for everyone to achieve - setting a 100% accuracy is not only impossible, it is going to add more "negativity" to your staff and work performance than good. E.g. - set a target of 90%, then slowly increase it to 93% then maybe a maximum of 99%. Once you have achieve that level - 99%, set it as the minimum level.You will see everyone trying to push to that 100% mark in effort and actually getting the work done.

 

Put in place a checking policy - have someone who is extremely proficient in detials check all incoming and outgoing orders and shipments. Start right the first time, you'll end up right almost everytime.

 

Put in place and record down the cycle counting / inventory procedure as an SOP in your company. This way, staff do not have the excuse nor reason when they have to explain why the inventory is inaccurate. This prevents wrong picking, wrong inbound and outbound in the long run.

 

Lastly, training of your staff. Once your SOP is in place, ensure that it is the only way to get things done and your staff must be train to perform the task at hand in accordance to your SOP. The onus is on you (as the manager) to ensure that the staff are properly and adequetly train, otherwise all effort will be to waste.

System implementation will only digitised the above listed process due to computers. It is up to us the human beings involved to get it right all the time.

 

Regards,

Leonard

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From: Karim <ka...@technoassocie.sg>
To: ls...@googlegroups.com
Sent: Tuesday, 2 December 2008 3:22:04

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[Nathalie Ricaud]

Dear JP,

 

Not sure whether you are having a location control system in place (i.e. identifying all pallet/bin locations in your system, having visibility of inventory by location and picking from a specific location as indicated on the pick list) but it can also help improve picking accuracy (among a lot of other benefits).

 

Best regards,

Nathalie

 

 

 

 

 

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From: ls...@googlegroups.com [mailto:ls...@googlegroups.com] On Behalf Of Leonard
Sent: 02 December 2008 21:40

[csr post]

Hi JP,

 

Where are you based?

 

Thx

Anil

[csr post]

Hi JP,

 

You will greatly benefit from a basic Warehouse Management system (WMS), a computerised material control system. WMS does not mean that you will have to shell out a lot of money. There are basic WMS systems and consultants who can help you to implement the same. But word of caution is to ensure that which ever system you would like to go with and the consulting partners to implement, will deliver value for money. Alternatively if your current system is good enough, you can use some simple tools for binning, picking and managing inventory.

 

I am currently working with similar warehousing projects assisting clients to solve issues such as Inventory discrepancies, wrong item selection, logical storage of items, fast movers v/s slow movers and appropriate slot sizes etc. Picking is a very critical activity and can lead to a lot of efficiencies if managed properly. Again by adopting few common sense approaches like slotting based on movement profile, regular reslotting, golden zoning and educating pickers would lead to improved inventory accuracy and customer service.

 

Please contact me for any further queries regarding the same and would be happy to assist you.

 

Thanks & Regards

Anil Chinnabhandar

csr...@gmail.com

On Mon, Dec 1, 2008 at 5:08 PM, JP <Jyot...@gmail.com> wrote:

[S M Patnaik]

Hi JP,
Leonard has addressed your issue very comprehensibly. Inventory
accuracy drivers are as below
- SOP for the warehouse
- Right software for stock accounting and storage
- Training of staff
The above factors are within the distribution centre in charge's
control. However SKU packaging does play a significant role in
avoiding error in inward entry or outward picking.
In my experience one of the major reasons of stock errors is because
of callousness of the staff. Just put a process in place, hand hold
people for a week or fortnight to show how things can be done right
and then make people accountable for individual responsibility. For
inward stock count only one person should be responsible. For picking
one person should be responsible and for out bound one should be
named.
There are many stand alone locally (Mumbai or Delhi) made softwares in
Foxpro which are very economical and versatile to handle inventory
transactions. One ready made software I know is Medicare. There would
be many such softwares available which cost anywhere between Rs.5000/-
to Rs.20000/- ($100 to $400)
Try it out. I am sure you would find some solution.
Regards
S M Patnaik

[JP]

Thanks for your valuble suggestions.

Right now we dont have RFID or Barcode scanners. We are using foxpro
based software.

The problem is with shortage of trined manpower. We dont have system
to control physical inventory.

Thanks,
JP

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