warehouse basics

warehouse basics

1. Purchase order

   • A purchase order, purchase order or purchase order is a legal document that serves as proof, for both the seller and the client, of the conditions of the purchase-sale process carried out between them.
     • Characteristics of a purchase order
       • Flexible: It is a flexible document that can be adapted to a variety of industries and types of business transactions.
         • Customizable: You can customize your purchase order according to the specific needs of your company.
           • Formal: it is a formal document that clearly and officially establishes the intention to acquire goods or services. Its structured format and detailed content provide a legally binding record of the terms and conditions agreed upon between buyer and supplier.
             • Legal: has a legal nature that governs the commercial transaction. These terms may address issues such as rights and responsibilities of both parties, warranties, and other relevant legal elements.
               • Trackable: because it uses a unique reference number and other elements, it is easy to track and trace throughout the purchasing process. This is crucial for inventory control, financial management, and supply chain documentation.
                 • Communication: The purchase order acts as a clear means of communication between the buyer and the supplier. By specifically detailing the products or services requested, payment and delivery terms, and other conditions, the possibility of misunderstandings is minimized.
                   • Controllable: The purchase order serves as a detailed record of the business transaction, increasing transaction control. This record is valuable for accounting, financial management, and dispute resolution as it provides a historical reference to the transaction.
     • Order Types
       • Standard purchase order
         • This type of purchase order is the most used, as it includes request details such as price, quantity, request date, and payment terms. This is used when goods or services are purchased regularly in a business.
         • Planned purchase order
           • It is used when the exact delivery date is not known, but the need to acquire a good or service is anticipated in the future. The planned purchase order can be placed on a daily basis and then the delivery date can be adjusted so that the supplier takes this into account.
           • open purchase order
             • This type of order is used when certain details of the request are unknown, so a specific deadline and maximum quantity of goods must be established. With the open purchase order, the customer can order a certain amount of products from the supplier in this period without exceeding the limit.
             • contract purchase order
               • It is used when a specific contract is made for goods or services. It refers to a transaction that is agreed upon between the buyer and the supplier, whose prices are not set by supply and demand, but by an agreement established between the parties.

2. Warehouse entrance

   • Warehouse inventory entries are a record of the products and materials that are stored in the warehouse. These entries are used to keep track of products and materials in stock, as well as to determine when they need to be replenished.
     • The entries
       • Goods receipts are accounting documents used to record the arrival of goods to a company. These documents contain information about the price, quantity, supplier and description of the products received. These documents are used to keep track of products received and to ensure that payments are made correctly.
     • Entries in inventory
       • Entries in a warehouse's inventory typically include information such as the name of the product or material, the quantity stored, the unit price, the total cost, the entry date, and the expiration date. This information is used to keep track of products and materials in storage, as well as to determine when they need to be replenished.

3. Shrinkage control

   • Controlling shrinkage means minimizing its causes as well as knowing the percentage of loss in each product and process in order to standardize and scandalize it.
     • The two major causes of losses
       • Thefts
         • Throughout the supply chain, from the warehouse to the points of sale, ant theft and cargo transport thefts are the order of the day (not for nothing, insecurity was one of the main criticisms of the Carta Porte complement) Depending on their main line of business, companies suffer losses due to theft by clients, employees themselves and even suppliers. In all cases, it is important to supervise and manage an administration system that automatically detects shortages. , as we will see lines below.
       • Mistakes
         • Problems with transfer logistics, Disposal of products due to non-compliance with quality standards, Overproduction. Incorrect storage, Poor handling of the product, Accounting errors, Omissions in receiving the product.

4. Warehouse card

   • It is the document where the exits and entries of merchandise to the warehouse are recorded. Keep track of the cost of the product following the inventory valuation system that the company has selected.
     • Its objective
       • Having exact control of the stock in a warehouse is essential to be able to work with more accuracy, planning and organization. For this, the warehouse card is the most effective type of tool. And these tokens allow you to know all the movements that are carried out with the stocks, both for entries and exits, and to be clear about the prices.
     • Parts of a storage card
       • Company name.
         • Indication that this is an auxiliary warehouse record.
           • Corresponding card number.
             • Description of the article.
               • Unit Type (Piece, Kilo, Liters, Meters, etc.)
                 • Location of the articles.
                   • Indication of maximums and minimums.

5. Transfer of goods

   • Transfer is defined as an internal movement activity where certain goods in the warehouse change location. Also part of the control of the reception and departure of merchandise, this operation requires an exhaustive record of the movements.July 21, 2021
     • Transfer types
       • The transfer of products between two warehouses of the same entity.
         • The transfer between different levels.
           • Winery changes.
             • The temporary location of packages during the reception of merchandise in the warehouse.
               • The movement of damaged products to a waste area.
                 • The movement between docks during the shipment of goods.
     • Transfer reasons
       • Poor condition of the products: if, for example, a group of frozen foods was affected by a failure in the temperature conservation of the container, these must be discarded.
         • Poor condition of the facilities: this is the case of food or products that may suffer damage due to the presence of an external factor in the warehouse, for example a mouse. Thus, they are transferred from one warehouse to another.
           • A change in configuration or reorganization of the warehouse: when for various reasons the internal distribution of the warehouse is reevaluated and this modifies the location of the goods. A change of criteria, for example in a clothing store during sales season, where clothes are stored according to the season.
             • Gathering different products into one: also known as kits, these are products that decide to be sold together. As a result, they are stored in the same place to facilitate future shipment for operators.
               • Merchandise replacement: when a transfer occurs between the different levels of the warehouse due to the replacement of products. In the case of small business management, this transfer occurs through the movement of products between the warehouse and the respective sales area.
                 • Every transfer reason is recorded by the logistics director in a warehouse merchandise control sheet, called a transfer note. In this way, the procedure is recorded and reaches the hands of the systems director.

6. Materials request

   • A material requisition is a request made by the warehouseman or warehouse manager to deliver a material requested through a work order for the execution of a task.
     • Its importance
       • A purchase requisition is a document that is used to request the purchasing department or the area of ​​the company in charge of acquiring the goods orrvices necessary for the correct operation of the organization.
     • What should be done first in your company, the job requisition or the job description?
       • However, in contrast to that position, it could also be said that it is first necessary to identify that there is a need in the company. After understanding that this need actually exists and applying for the position, you can begin to see the type of skills and knowledge that will be sought in the person who enters the position. For example, in a company it may be decided that a salesperson is required, but after identifying this need, it is possible to determine the level of experience needed for the position, the training they must have, among other factors that are part of the description. of the position. In this way, the Human Resources area must come in to support the department that requires the hiring and see what type of characteristics are requirements and what others are simply desirable, but not necessary to fulfill the tasks of the vacancy.

7. Goods release

   • Warehouse issues are movements of goods that are carried out to supply customers and can be classified into two main types: material issues for production and finished product issues for sale.
     • Procedure
       • Select Inventory Stock Operations Goods Issue.
         • Enter the appropriate information.
           • Select the Add button.
             • A window opens in which you confirm that you want to add the goods issue document.