MANAGEMENT 120

Course outline Transportation and Logistics Management The Channel of Distribution The Supply Chain Strategy Logistic System Design Procurement SAP

STORY

A wife on the eve of her 50th wedding anniversary, asked her husband, Dear, tomorrow we celebrate our golden wedding anniversary. For the past fifty years I have been very honest and open to you, I believe you know me so well, there is nothing that I could hide and conceal from you anymore. The husband not knowing what point the wife was trying to drive at, responded, Dear, so with me. I have always been honest and open with you. There is something that for the past 50 years I have been wanting to know about you. The husband surprised, asked, What is

it? Pointing to a drawer of an old study table belonging to the man, the woman inquired, For the past 50 years you have locked that drawer and never did reveal to me the contents. Dear, what is inside? The husband cannot at that point refuse. Hence, he nervously opened the drawer to reveal to the wife two eggs and a bundle of a thousand peso bills. Perplexed, the wife asked, What are those? The man, realizing that the woman would just have to know, explained--

Dear, I am sorry. Please do not be angry. Each of the two eggs represent the times I was unfaithful to you.

Hurt, but still glad that her husband committed infidelity only twice during their 50 years of marriage, the wife readily forgave the man. She thereafter asked about the thousand peso bills, Where did they come from? This time with a trembling voice, the husband answered--

My love, that is the money I earned when I sold the other eggs I then have collected and could no longer place inside the drawer.

CONSUMER PURCHASE INFORMATION SUPPLIER STORE CONSUMER

FACTORY

W. HOUSE

PRODUCT FLOW

SUPPLY CHAIN

THE BULL WHIP EFFECT

Fluctuations in orders increase as they move up the supply chain from retailers to wholesalers to manufacturers to suppliers The bullwhip effect distorts demand information within the supply chain, with different stages having a very different estimate of what demand looks like

CONSUMER PURCHASE INFORMATION SUPPLIER FACTORY

W. HOUSE

STORE

CONSUMER

PRODUCT FLOW

SUPPLY CHAIN

PILLARS OF SUPPLY MANAGEMENT

Logistics Operation
Purchasing Demand and Replenishment Customer Service

LOGISTICS OPERATION
Logistics Warehousing Handling & Storage Customer Inv entory M anagement Serv ice Operation

SUPPLY MANAGEMENT
Demand & Replenishment

Transportation and Deliv ery

Purchasing

PURCHASING
Logistics Operation

Supplier Selection Customer Serv ice Negotiation and Bidding Demand & Contract Administration Replenishment

SUPPLY MANAGEMENT

Purchasing

DEMAND AND REPLENISHMENT

Logistics Operation

Demand Forecasting Customer Serv ice Inv entory M anagement Demand & Replenishment Replenishment

SUPPLY MANAGEMENT

Purchasing

CUSTOMER SERVICE
Logistics Operation

Order taking Customer Serv ice Order Entry

SUPPLY MANAGEMENT
Demand & Replenishment

Order Processing

Purchasing

SUPPLY CHAIN
CONSUMER PURCHASE INFORMATION SUPPLIER STORE CONSUMER

FACTORY

W. HOUSE

CHANNEL OF DISTRIBUTION

PRODUCT FLOW

What are the Channels of Distribution?

A supply chain is consisting of all parties and their supplied activities that help a marketer create and deliver products to the final customer. A distribution decision that is primarily concerned with the supply chains front-end or channels of distribution that are designed to move the product (goods or services) from the hands of the company to the hands of the customer.

Activities of the Channel Ordering Handling and shipping Storage Display Promotion Selling Information feedback

Type of Channel Member Reseller

Retailer Wholesaler Industrial Distributor

Specialty Service Firm

Agent and Broker Distribution Service Firm Others

Benefits offered by Channel Member

Cost Savings in Specialization Reduce Exchange Time Offers Variety of product Resellers Sell Smaller Quantities Create Sales Offer Financial Support Provide Information

Cost of Utilizing Channel Member

Loss of Revenue Loss of Communication Control Loss of Product Importance

Cost of Utilizing Channel Member

Loss of Revenue Loss of Communication Control Loss of Product Importance

Channel Arrangement

Independent
Under this arrangement a channel member negotiates deals with others that do not result in binding relationships. In other words, a channel member is free to make whatever arrangements they feel is in their best interest.

Channel Arrangement

Dependent
Under this arrangement a channel member feels tied to one or more members of the distribution channel. Sometimes referred to as "vertical marketing systems" this approach makes it more difficult for an individual member to make changes to how products are distributed. However, the dependent approach provides much more stability and consistency since members are united in their goals.

TYPE Type OF ofDEPENDENT Dependent CHANNEL Channel Arrangement ARRANGEMENT

Corporate Under this arrangement a supplier operates its own distribution system in a manor that produces an integrated channel. This occurs most frequently in the retail industry where a supplier operates a chain of retail stores.

TYPE Type OF ofDEPENDENT Dependent CHANNEL Channel Arrangement ARRANGEMENT

Contractual Under this arrangement a legal document obligates members to agree on how a product is distributed. Often times the agreement specifically spells out which activities each member is permitted to perform or not perform. This type of arrangement can occur in several formats including:
o o o Wholesaler-sponsored where a wholesaler brings together and manages many independent retailers including having the retailers use the same name. Retailer-sponsored this format also brings together retailers but the retailers are responsible for managing the relationship. Franchised where a central organization controls nearly all activities of other members.

TYPE OF DEPENDENT CHANNEL ARRANGEMENT

Administrative In certain channel arrangements a single member may dominate the decisions that occur within the channel. These situations occur when one channel member has achieved a significant power position. This most likely occurs if a manufacturer has significant power due to brands in strong demand by target markets or if a retailer has significant power due to size and market coverage. In most cases the arrangement is understood to occur and is not bound by legal or financial arrangements.

MARKETING ISSUES IN THE CHANNEL

Product Issues
The nature of the product often dictates the distribution options available especially if the product requires special handling.

Promotion Issues
Besides issues related to physical handling of products, distribution decisions are affected by the type of promotional activities needed to sell the product to customers.

Pricing Issues
The desired price at which a marketer seeks to sell their product can impact how they choose to distribute.

Target Market Issues

A distribution system is only effective if customers can obtain the product. Consequently, a key decision in setting up a channel arrangement is for the marketer to choose the approach that reaches customers in the most effective way possible.

LEVEL OF DISTRIBUTION COVERAGE

Mass Coverage - The mass coverage (also known as intensive distribution) strategy attempts to distribute products widely in nearly all locations in which that type of product is sold. This level of distribution is only feasible for relatively low priced products that appeal to very large target markets. Selective Coverage - Under selective coverage the marketer deliberately seeks to limit the locations in which this type of product is sold. To the non-marketer it may seem strange for a marketer to not want to distribute their product in every possible location. Exclusive Coverage - Some high-end products target very narrow markets that have a relatively small number of customers. These customers are often characterized as discriminating in their taste for products and seek to satisfy some of their needs with high-quality, though expensive products.

DISTRIBUTION SYSTEM
Direct
Direct Marketing Systems With this system the customer places the order either through information gained from non-personal contact with the marketer, such as by visiting the marketers website or ordering from the marketers catalog, or through personal communication with a customer representative who is not a salesperson, such as through toll-free telephone ordering. Direct Retail Systems This type of system exists when a product marketer also operates their own retail outlets. Personal Selling Systems The key to this direct distribution system is that a person whose main responsibility involves creating and managing sales is involved in the distribution process, generally by persuading the buyer to place an order. Assisted Marketing Systems Under the assisted marketing system, the marketer relies on others to help communicate the marketers products but handles distribution directly to the customer.

DISTRIBUTION SYSTEM

Indirect Single-Party Selling System - Under this system the marketer engages another party who then sells and distributes directly to the final customer. This is most likely to occur when the product is sold through large store-based retail chains or through online retailers, in which case it is often referred to as a trade selling system. Multiple-Party Selling System This indirect distribution system has the product passing through two or more distributors before reaching the final customer. The most likely scenario is when a wholesaler purchases from the manufacturer and sells the product to retailers.

DISTRIBUTION SYSTEM

Multi-Channel (Hybrid) In cases where a marketer utilizes more than one distribution design the marketer is following a multichannel or hybrid distribution system. The multi-channel approach expands distribution and allows the marketer to reach a wider market.

THE LOGISTICS CONCEPT

Logistics part of the SC that plans, implements, and controls the efficient forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer requirements. Logistics began in WWII in response to: Expanding product lines Increased product value Competitive market conditions

Integration Key element in logistics development Outbound transportation, field warehousing, application of a systems perspective to total cost

TYPICAL LOGISTIC NETWORK PHYSICAL DISTRIBUTION

Raw Material Supply Point Mov ement Storage Raw Material Storage Mov ement Mov ement Warehouse Manufacturing Finished Goods Storage Mov ement A Markets

Storage

Warehouse

Storage

Warehouse

Physical Supply Material Management

Physical Distributions Marketing Logistics

THE LOGISTICS CONCEPT

Additional Activities to Logistics Function Inbound transportation Production scheduling Customer service Packaging Importance of Logistics to US Military effort Persian Gulf War (early 1990s) referred as Logistics War because of the importance of logistics pipeline supporting the fighting effort Integrated logistics concept was obviously critical to militarys success in the Gulf War US Military is now adopting commercial best practices (3PLs) to eliminate waste and duplication of assets while improving the readiness of their weapons systems

TYPICAL LOGISTIC NETWORK MATERIAL MANAGEMENT

Raw M aterials Sources Plants Distribution Center Customers

LOGISTICS EVOLUTION
Fragmentation Demand Forecasting Purchasing Requirement Planning Production Planning Manufacturing Inv entory Warehousing Material Handling Industrial Packaging Finished Goods Inv entory Distribution Planning Order Processing Transportation Customer Serv ice Physical Distribution Logistics Material Management Ev olv ing Integration Total Integration

THE LOGISTICS CONCEPT

Logistics process provides a systems framework for decision making that integrates Transportation Inventory levels Warehousing space Materials-handling systems Packaging Customer service Logistics also involves efficient and effective management of inventory, whether in motion or at rest, to satisfy customer requirements and organizational objectives. Transportation service is inventory in motion, therefore, true cost is more than the actual rate charged by the transportation company.

THE SUPPLY CHAIN CONCEPT

The concept of Supply Chain Management is the newest thrust for many organizations attempting to integrate business processes between their channel partners.
Supply Chain Management Integrates product, information, and cash flows among organizations from the point of origin to the point of consumption, with the goal of maximizing consumption satisfaction and minimizing costs.

LOGISTICS EVOLUTION TO SUPPLY CHAIN MANAGEMENT

Demand Forecasting Purchasing Requirement Planning Production Planning Manufacturing Inv entory Warehousing Material Handling Industrial Packaging Finished Goods Inv entory Distribution Planning Order Processing Transportation Customer Serv ice Strategic Planning Information Technolgy Marketing/Sales Finance Physical Distribution Supply Chain Management Logistics Material Management

THE SUPPLY CHAIN CONCEPT

SCM is more than just words or a concept. In real world, companies that practice SCM use their operations not only to reduce costs and inventories, but also to drive up revenues. Seven-Eleven Japan Replenishes stores up to eight times a day to provide high in-stock levels, fresh products, and a varying assortment to meet customer needs at different times of the day. Its supply chain capabilities have helped Seven-Eleven Japan become the largest and most profitable convenience store in that country. Dell Computers Direct-to-customers operating model is famous for its efficiency, driving down costs, and enabling Dell to maintain the lowest inventories in the computer industry. It is a powerful revenue generator because it allows Dell to configure products that are tailored for specific customer needs.

TRANSPORTATION AND ECONOMY

Raw Material Supply Point Mov ement Storage Raw Material Storage Mov ement Mov ement Warehouse Manufacturing Finished Goods Storage Mov ement A Markets

Storage

Warehouse

Storage

Warehouse

Physical Supply Material Management

Physical Distributions Marketing Logistics

TRANSPORTATION AND THE ECONOMY

Transportation One of the tools that civilized societies need to bring order out of chaos It provides thoroughfare for the nations products, it provides a means for traveling to and from work, it supports our communication networks Transportation Product A service not a physical product, tangible product A service to the user, but it has basic characteristics that make purchasing this service similar to buying goods Aspects of Transportation movement service (speed, reliability, frequency of the service) equipment used (comfort and safety passengers, size, preparation, loading and unloading cost freight) cost of transportation service

TRANSPORTATION FLOW

TRANSPORTATION AND THE ECONOMY

Transportation is the creation of place, time, and quantity utility
Place utility means goods are moved to places where they have higher value than they had at the places from which they originated. Time utility means that this service occurs when it is needed Quantity utility is an assurance that the goods will arrive without damage. Quantity demanded = Quantity delivered

Transportation adds Utility of Goods in terms of:

Geographic specialization assumes that each nation, state, or city produces products and services for which its capita, labor, and raw materials are best suited. Large-scale production is complemented by geographic specialization with the use of effective and efficient transportation networks, the advantages of scale economies, production efficiencies, and cheaper manufacturing facilities. Increased competition would benefit consumers as brought by efficient transportation. Land values increased that is adjacent to or served by the transportation improvements.

ASSIGNMENT

GROUP REPORT (7 groups)

Present different types/groups under the transportation provider and present their:
Industry Overview Operating and Service Characteristics Cost Structure Documentation requirement Reference Any Transportation Management Book or Management of Transportation by Bardi, Coyle, & Novack

ASSIGNMENT

GROUP REPORT (7 groups)

1. 2. 3. 4. 5. 6. 7. Motor Carriers (Mark Reji Rivera) Railroads (Danica Nabong) Air Carriers (Justine Pielle Lising) Water Carriers (Jan Erick Ancheta) Pipelines (Rachelle Beltran) Intermodal and Special Carriers (Ann Gee Lee Ramos) Global Transportation (Jermaine Cruz)

LANDED COST (Value of Goods)

H Price at point B with transport cost

J COST PRICE

D Fixed Cost C Maximum price at B

Price at point A

DISTANCE

LANDED COST EXAMPLE

Cost of product X Variable Cost 60.00 per product. Fixed cost 10.00 per product. Transportation cost Old transport system 30.00 per product. New transport system 10.00 per product. How much is the unit cost of the product? Compute for the product cost using old and new transport system. How much is the effect of new transport system to the unit cost of the product? Which system will be most appropriate if the costumer are willing to pay for your product in the amount of 90.00? How much is your loss/ income?

LANDED COST
Cost of product X Variable Cost 25.00 per product. Fixed cost 5.00 per product. Transportation cost Old transport system 15.00 per product. New transport system 5.00 per product. How much is the unit cost of the product? Compute for the product cost using old and new transport system. How much is the effect of new transport system to the unit cost of the product? Which system will be most appropriate if the costumer are willing to pay for your product in the amount of 40.00? How much is your loss/ income?

SAMPLE LOGISTICS DESIGN

INVENTORY

In the context of our study, INVENTORY concerns those services or materials that directly or indirectly form part of the ongoing task of delivering the services or making the products that an organization provides or sells. It comprises the inputs, services or materials used, any part-finished items (services or products) and those items that are complete and held awaiting their sale. Simply put, inventory is a stock of items kept by an organization to meet internal and external customer demands.

BUSINESS INVENTORIES
To meet customer demand Finished product at supermarkets, distributors, traders and manufacturer To meet production requirement Raw and packaging materials at manufacturing, assembly or fabrication plant. To meet needs of operating departments Operating supplies, spare parts, office supplies, maintenance supplies

DISTRIBUTION/ MARKETING

MANUFACTURING

SERVICE/SUPPORT

FUNCTION OF INVENTORIES

TRANSIT

Normal pipeline inventories maintained because of the need to transport inventories from one point to another when the transit time is not instant

BUFFER

Used as protection against stock-outs due to uncertainties in demand and supply

ANTICIPATION

Covers anticipated or expected changes in demand and/or supply

FUNCTION OF INVENTORIES

CYCLE

This covers the need to produce in lot sizes where inventories are accumulated at certain stages in the the production process ready for the succeeding stage.

ECONOMIES OF SCALE

These are created by ordering or producing in quantities to obtain the lowest unit cost possible

WHY PLAN? WE NEED TO . . .

Balance the need to SATISFY CUSTOMERS on one hand and the need to MINIMIZE INVENTORY HOLDINGS on the other
Deal with uncertainties in demand and supply lead times Categorize stock items according to importance to the firm so we can focus properly

OBJECTIVE OF INVENTORY MANAGEMENT

High customer service

Minimum investment

Maintain optimum inventory level to deliver the high customer service at the lowest possible cost.

METHODS OF VALUATION
FIFO

First-IN First-OUT

The oldest goods in inventory are issued

Last-IN First-OUT

LIFO

The last goods received are issued first

Weighted Average Cost

WAC

Value received + value on hand = cost per item divided by total number units

Standard Cost

SC

Based on estimated before the item is purchased

Replacement Cost

RC

Based on estimated replacement cost

INVENTORY COST

INVENTORY COST

Ordering/Setup Cost

Carrying Cost

Stock out Cost

Administrative Transport Forms Communication Labor

Financing Ownership Risk Overhead

Extra Production Extra Transpo Lost Sales Lost Customer

INVENTORY CARRYING COST COMPONENT

Finance Cost interest cost, opportunity cost

Ownership Cost insurance, taxes Risk Cost obsolescence, theft, damage Overhead cost warehouse, handling, control

INVENTORY CARRYING COST EXERCISE 1

GMR, Inc. had maintained an average inventory of materials and supplies amounting to Php 100,000,000 during the previous year. The general manager felt that this level of inventory could be improved with better management of inventory. So he send his inventory manager to Letran for further studies. After his stint in Letran, the inventory manager aggressively applied some relevant techniques to his work at the company. For current year, the inventory manager successfully reduced the companys average inventory to 80,000,000 without any adverse effect to the companys operation. As part of the inventory managers accomplishment report, how much is the total peso savings which resulted from the inventory reduction assuming that the annual inventory carrying cost is 16%?

INVENTORY CARRYING COST EXERCISE 1

Av erage Inv entory Prior Year Current Year 100,000,000 80,000,000 Carrying Cost (16%) 16% 16% Carrying Cost 16,000,000 12,800,000 3,200,000

Prior Year Current Year Difference Carrying Cost Savings

or Average Inventory Php 100,000,000 Php 80,000,000 Php 20,000,000 X 16% Php 3,200,000

INVENTORY CARRYING COST EXERCISE 2

The inventory Manager of GMR, Inc. issues a purchase requisition to the purchasing dept for 100M pieces of materials A. This quantity would cover 1 months requirement. After discussion with his supplier, the purchasing manager asked the inventory manager if he could agree to increase his requested quantity to 200M pieces since the supplier has offered to give 2% discount from the quoted price of Php10/pc at 100M piece order quantity provided that the entire quantity of 200M pieces are delivered at one time. Assuming that the annual inventory cost is 12%, should the inventory manager agree to increase his requisition? What would be the basis of his decision?

INVENTORY CARRYING COST EXERCISE 2

SAVING Purchase Cost Sav ing Regular Price Discounted Price Sav ing Sav ing at 200,000 pcs @ .20/pc discount INVENTORY CARRYING COST Buy 100,000 pieces: 1st Month 2nd Month 100,000 @ P 10 @ 1% ICC 100,000 @ P 10 @ 1% ICC 10,000 10,000 20,000 10.00 /pc 9.80 /pc 0.20 /pc 40,000

Buy 200,000 pieces: 1st Month 2nd Month 200,000 @ P 9.80 @ 1% ICC 100,000 @ P 9.80 @ 1% ICC 19,600 9,800 29,400 (9,400) 30,600

Added inv entory cost Net Sav ings

THE ABC INVENTORY CLASSIFICATION

System that aims to establish the best possible control at least possible cost for each class item in inventory. Places investment control on A and B class of items where peso usage value is most important.

THE ABC INVENTORY CLASSIFICATION Class A are significant few that comprises 60 to 70 percent of total purchasing spend but is 10 to 15 percent of item in the stock. Class B falls between A and C and usually ranges from 20-30 percent for both expenditure and number of item in stock.

Class C are 10 to 15 percent of purchasing spend but is 60 to 70 percent of total inventory in terms of volume.

THE ABC INVENTORY CLASSIFICATION MATRIX

% ANNUAL % TOTAL ITEM INVENTORY INVENTORY GROUP VALUE ITEMS STOCK LEVEL DELIVERY SCHEDULE MOST FREQUENT REVIEW AND CONTROL MOST TIGHT & FREQUENT LESS TIGHT & FREQUENT LEAST TIGHT & FREQUENT

60% - 70% 10% - 20%

LOW

20% - 30% 20% - 30%

LESS MEDIUM FREQUENT

10% - 20% 60% - 70%

HIGH

LEAST FREQUENT

ABC METHOD Determine the annual quantity usage of each item. Determine their unit cost. Multiply cost per unit to annual quantity usage to get the annual peso usage value. Determine the percentage of each item to the total annual peso usage value. Determine the cumulative percentage value by adding the percentage result of each item.

ABC METHOD
ANNUAL QUANTITY USAGE % TO TOTAL ANNUAL PESO USAGE CUMMULATIVE % TO TOTAL ANNUAL PESO USAGE

ITEM DESCRIPTION

UNIT COST

ANNUAL PESO USAGE

Material A Material B Material C Material D Material E Material F

800 1,000 1,500 1,250 500 700

1,250.00 400.00 300.00 250.00 1,500.00 1,250.00

1,000,000.00 400,000.00 450,000.00 312,500.00 750,000.00 875,000.00 3,787,500.00

ABC METHOD
ANNUAL QUANTITY USAGE % TO TOTAL ANNUAL PESO USAGE CUMMULATIVE % TO TOTAL ANNUAL PESO USAGE

ITEM DESCRIPTION

UNIT COST

ANNUAL PESO USAGE

Material A Material F Material E Material C Material B Material D

800 700 500 1,500 1,000 1,250

1,250.00 1,250.00 1,500.00 300.00 400.00 250.00

1,000,000.00 875,000.00 750,000.00 450,000.00 400,000.00 312,500.00 3,787,500.00

ABC METHOD
ANNUAL QUANTITY USAGE % TO TOTAL ANNUAL PESO USAGE CUMMULATIVE % TO TOTAL ANNUAL PESO USAGE

ITEM DESCRIPTION

UNIT COST

ANNUAL PESO USAGE

Material A Material F Material E Material C Material B Material D

800 700 500 1,500 1,000 1,250

1,250.00 1,250.00 1,500.00 300.00 400.00 250.00

1,000,000.00 875,000.00 750,000.00 450,000.00 400,000.00 312,500.00 3,787,500.00

26.40% 23.10% 19.80% 11.88% 10.56% 8.25% 100.00%

ABC METHOD
ANNUAL QUANTITY USAGE % TO TOTAL ANNUAL PESO USAGE CUMMULATIVE % TO TOTAL ANNUAL PESO USAGE 26.40% 49.50% 69.31% 81.19% 91.75% 100.00%

ITEM DESCRIPTION

UNIT COST

ANNUAL PESO USAGE

Material A Material F Material E Material C Material B Material D

800 700 500 1,500 1,000 1,250

1,250.00 1,250.00 1,500.00 300.00 400.00 250.00

1,000,000.00 875,000.00 750,000.00 450,000.00 400,000.00 312,500.00 3,787,500.00

26.40% 23.10% 19.80% 11.88% 10.56% 8.25% 100.00%

ABC METHOD
ANNUAL QUANTITY USAGE % TO TOTAL ANNUAL PESO USAGE CUMMULATIVE % TO TOTAL ANNUAL PESO USAGE 26.40% 49.50% 69.31% 81.19% 91.75% 100.00%

ITEM DESCRIPTION

UNIT COST

ANNUAL PESO USAGE

Material A Material F Material E Material C Material B Material D

800 700 500 1,500 1,000 1,250

1,250.00 1,250.00 1,500.00 300.00 400.00 250.00

1,000,000.00 875,000.00 750,000.00 450,000.00 400,000.00 312,500.00 3,787,500.00

26.40% 23.10% 19.80% 11.88% 10.56% 8.25% 100.00%

WAREHOUSING CYCLE
RECEIPT VERIFICATION

ISSUANCE

INSPECTION

PREPARATION FOR ISSUANCE

PREPARATION FOR STORAGE

ISSUANCE VERIFICATION

STORAGE

RECEIVING PROCEDURE FROM VENDOR

Assign Lot No. if Required Inv DR P.O. Inspection and Verification Assign Storage Location

Prepare Receiving Report

Update Records

Distribute and File Documents

Label Pallet

Forklift Driver Put Away

Space Occupied YES NO

Complete

RECEIVING PROCEDURE FROM PRODUCTION

Prepare Receiving Report Production Tally Sheet/ Stock Transfer Slip Inspection and Verification Assign Storage Location

Update Records

Distribute and File Documents

Label Pallet

Forklift Driver Put Away

Space Occupied YES NO

Complete

WAREHOUSE MANAGEMENT-CODING SYSTEM

Most efficient and effective way of identifying materials, components, assemblies and other items stocked by an organization. Without proper coding, problems in identifying and locating goods in inventory are likely to arise.