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TLIA1907C

Organise  receival  operations    

MC  
Armstrong’s  Driver  Education  
 
Learner  Guide  
TLIA1907C Organise receival operations

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TLIA1907C Organise receival operations

Contents
What this Learner’s Guide is about ........................................ 5  
Planning your learning ........................................................... 6  
How you will be assessed ...................................................... 9  

Section 1........................................................................................... 11  
Organising receival operations............................................. 11  

Section 2........................................................................................... 37  
How do you keep accurate storage records?....................... 37  

Section 3........................................................................................... 49  
Receival problems................................................................ 49  

Additional resources ....................................................................... 55  

Feedback on activities .................................................................... 57  

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ADELG1073 Customised and developed by Armstrong’s Driver Education Pty Ltd July 2009
TLIA1907C Organise receival operations

What this Learner’s Guide is about

This  Learner’s  Guide  is  about  businesses  depending  on  being  able  to  
obtain  and  supply  goods  and  services.    In  this  Learner’s  Guide  you  will  
look  at  the  kinds  of  things  you  need  to  know  and  understand  when  
you  are  dealing  with  getting  and  supplying  services.  

A  key  to  the  effective  supply  of  goods  is  warehouse  management.    
Unless  the  warehouse  operates  efficiently  the  business  cannot  
operate  efficiently.    For  this  reason,  well-­‐trained  and  efficient  
warehouse  employees  are  very  important  members  of  the  business  
team.  

The  Elements  of  Competency  from  the  unit  TLIA1907C  Organise  


receival  operations  covered  in  this  Learner’s  Guide  are  listed  below.  

Plan  and  organise  receival  operations  

Organise  the  storage  of  stock  

Complete  documentation  

This  unit  of  competency  is  from  the  Transport  and  Logistics  Training  
Package  (TLI07).  

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Planning your learning

It  is  important  to  plan  your  learning  before  you  start  because  you  may  
already  have  some  of  the  knowledge  and  skills  that  are  covered  in  this  
Learner’s  Guide.  This  might  be  because:  
• you  have  been  working  in  the  industry  for  some  time,  
and/or  
• you  have  already  completed  training  in  this  area.  

Together  with  your  supervisor  or  trainer  use  the  checklists  on  the  
following  pages  to  help  you  plan  your  study  program.  Your  answers  to  
the  questions  in  the  checklist  will  help  you  work  out  which  sections  of  
this  Learner’s  Guide  you  need  to  complete.  

This  Learner’s  Guide  is  written  with  the  idea  that  learning  is  made  more  
relevant  when  you,  the  learner,  are  actually  working  in  the  industry.  
This  means  that  you  will  have  people  within  the  enterprise  who  can  
show  you  things,  discuss  how  things  are  done  and  answer  any  
questions  you  have.  Also  you  can  practise  what  you  learn  and  see  how  
what  you  learn  is  applied  in  the  enterprise.  

If  you  are  working  through  this  Learner’s  Guide  and  have  not  yet  found  
a  job  in  the  industry,  you  will  need  to  talk  to  your  trainer  about  doing  
work  experience  or  working  and  learning  in  some  sort  of  simulated  
workplace.    

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Section 1: Organising receival

Are  you  able  to:   Yes   No  


1. identify  the  receival  areas  in  your  
warehouse?        
2. list  the  types  of  equipment  needed  in  
receival  areas  during  both  normal  and  
unusual  work  periods?        
3. list  the  documents  that  are  used  in  the  
receival  of  freight?        
4. explain  the  quality  control  procedures  for  
receiving?        
5. explain  the  safety  regulations  and  standard  
operating  procedures  for  receiving  stock?          

Section 2: How do you keep accurate storage


records?

Are  you  able  to:   Yes   No  


1. give  three  reasons  why  accurate  records  
are  essential  to  any  business?        
2. explain  what  an  inventory  is?        
3. explain  how  receipts  alter  the  inventory,  
and  what  reports  are  used?        
4. explain  how  discrepancies  are  identified  
and  the  procedures  used  to  validate  
adjustments?        
5. explain  what  stocktaking  is  and  list  the  
steps  taken  during  a  stocktake?        
6. give  an  example  of  an  appropriate  record  
keeping  technique  used  in  both  paper  
based  and  computerised  systems?          

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Section 3: Receival problems

Are  you  able  to:   Yes   No  


1. list  three  routine  problems  that  might  
occur  in  the  receival  of  warehouse  goods?        
2. explain  what  is  meant  by  a  ‘non-­‐routine’  
problem?        
3. give  an  example  of  a  non-­‐routine  problem  
occurring  in  the  receival  of  goods?        
4. report  receival  problems  to  the  appropriate  
people?        
5. explain  what  procedures  are  used  to  report  
receival  problems?          
6. describe  ways  of  solving  workflow  
problems  and  improving  receival  
processes?          

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How you will be assessed

Assessment  of  this  Unit  of  Competency  will  include  observation  of  real  
or  simulated  work  processes  using  workplace  procedures  and  
questioning  on  underpinning  knowledge  and  skills.  It  must  be  
demonstrated  in  an  actual  or  simulated  work  situation  under  
supervision.  

You  will  be  required  to:  


• describe  received  operations  within  your  warehouse  
• identify  problems  that  can  arise  in  recieval  operations  
within  your  warehouse  and  suggest  ways  to  address  these  
problems.  

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Section 1

Organising receival operations

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Section outline

Areas  covered  in  this  section  

Receival  areas  of  your  workplace  

Safety  regulations,  and  procedures  for  receiving  stock  

Removal  documentation  

Working  with  fellow  team  members  to  see  that  materials  move  
efficiently  through  receival  areas  

Quality  control  procedures  for  receiving  stock  

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How well do you know the receival areas?

When  receiving,  the  warehouse  becomes  involved  in  a  relationship  


between  the  supplier  and  carrier.  

It  is  important  that  the  quality  of  the  goods  to  and  from  receival  areas  
meet  acceptable  standards.    In  particular  the  receival  staff  must  
understand  the  recording  procedures  that  note  all  stock  deliveries  and  
movement  within  the  warehouse.  

The  receipt  process  involves:  


• the  use  of  human  resources  
• the  use  of  equipment  
• the  use  of  facilities  
• accounting  processes  
• product  handling  and  security.  

All  of  these  have  to  be  managed  at  a  high  level  of  quality  and  be  
subject  to  quality  control.  

Receival

Receival  occurs  when  goods  are  delivered  to  or  from  your  warehouse.  
During  this  process,  you  and  your  team  have  to  make  sure  that:  
• goods  are  handled  properly  
• goods  are  taken  to  the  right  storage  area  promptly  and  
efficiently  
• no-­‐one  is  hurt  while  the  goods  are  being  moved  
• all  necessary  records  are  kept;  you  may,  for  instance,  have  
to  fill  in  forms  or  you  might  have  to  type  or  scan  
information  into  a  computer.  

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Activity 1: The receiving areas

In the following space make a sketch of the floor plan of your


warehouse. On your sketch show:
• the receival areas
• three main areas where goods received will need to be taken.

Now ask your health and safety officer to help you answer these
questions.

What is the heaviest weight you can be asked to lift?

_____________________________________________________

What weight can two people working together be asked to lift?

_____________________________________________________

Are there differences between what men and women can be asked
to lift? If so, what are they?

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_____________________________________________________

If an accident happens:

• who should you tell?

___________________________________________________

___________________________________________________

• what records must be made?

___________________________________________________

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If you are using a trolley, what precautions do you need to take?

_____________________________________________________

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If you are using a knife, what precautions do you need to take?

_____________________________________________________

_____________________________________________________

If a Forklift is needed, who is allowed to drive it?

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

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What are standard operating procedures?

When  goods  are  handled  within  your  warehouse  a  set  of  standard  
operating  procedures  will  be  used.    Standard  operating  procedures  
outline  the  usual  way  that  things  should  be  done.    Generally  they  are  
written  down  in  a  manual  and  often  they  are  displayed  on  special  
notices  around  the  warehouse.  

Usually  these  things  will  happen  when  deliveries  are  made  and  goods  
are  received:  
• notice  is  given,  usually  by  a  supplier  or  transport  company,  
that  a  delivery  is  to  be  made  
• correct  staff  and  equipment  are  organised  so  that  loading  
or  unloading  can  take  place  
• a  truck  will  pass  through  security  
• security  will  telephone  the  warehouse  
• a  trainer  at  the  warehouse  will  see  that  the  staff  and  
equipment  needed  for  receival  are  available  and  prepared  
• goods  will  be  checked  to  see  that  the  right  numbers  are  
present  and  that  they  are  not  damaged  or  unacceptable  
for  any  other  reason  
• the  trainer  will  sign  the  relevant  documentation  and  keep  
a  copy  of  this  documentation  
• a  copy  of  the  driver’s  documentation  will  be  filed  
• other  receival  documents  will  be  prepared,  either  using  
receipt/despatch  books  or  a  computer  
• receival  documents  will  be  sent  to  a  number  of  offices  and  
departments;  this  might  be  done  by  hand  delivery  or  by  
computer  
• materials  received  will  be  removed  to  the  correct  storage  
area  –  by  hand,  by  trolley,  by  motorised  trolley,  or  by  
Forklift.  

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Activity 2: Your warehouse procedures

What procedures listed above are used at your warehouse? (If you
are not sure ask one of your trainers to help you find out what they
are.)

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_____________________________________________________

_____________________________________________________

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_____________________________________________________

List those which are not used and explain why you think they are
not used.

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_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

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What records and documents are used for


receival?

When  goods  are  received  at  a  warehouse  it  involves  what  people  often  
call  ‘paperwork’  or  ‘documentation.’  

In  the  receival  area,  dealing  with  paperwork  often  causes  delay,  


especially  if  goods  are  delivered  with  incorrect  or  missing  paperwork.  

Documentation  can  be  of  two  kinds  –  manual  or  electronic.  


• Manual  documentation  involves  handling  pieces  of  paper,  
writing  information  on  them,  storing  papers  appropriately,  
and  seeing  that  the  papers  are  passed  on  to  the  right  
people  and  places.  
• With  electronic  documentation  most  of  the  processes  
involved  in  manual  documentation  take  place.    Records  are  
made,  transmitted  and  kept,  however,  in  this  case  this  is  
done  by  computer.  

Today  automation  and  the  use  of  computers  means  that  information  
can  be  recorded  and  sent  quickly  to  the  right  people  and  places.    With  
computers,  sending  information  and  records  is  something  that  is  done  
in  seconds.  

This  happens  because:  


• working  areas  are  linked  using  computer  networks  
• barcoding  and  scanners  help  in  the  checking  of  goods  
• computer  terminals  are  available  at  loading  and  unloading  
docks.  

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How do you handle receival documentation?

Many  documents  are  used  in  the  receival  of  goods.    The  main  ones  are:  
• re-­‐order  notification  
• purchase  order  –  stores  copy  
• advice  note  
• delivery  note  
• consignment  note  
• internal  packing  note.  

Re-order notification

The  re-­‐order  notification  is  usually  issued  by  the  stock  record  section,  
and  a  copy  is  sent  to  the  purchasing  department  who  will  place  an  
order  with  the  supplier.    The  stores  department  will  now  know  that  a  
delivery  will  take  place.  

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Purchase order – stores copy

The  purchasing  department  is  responsible  for  issuing  stores  orders  and    
seeing  that  a  copy  comes  to  the  stores  department  or  warehouse.    The  
purchase  order  –  stores  copy    is  usually  a  carbon  copy  of  the  order  
placed  on  the  supplier.    This  copy  is  kept  on  file  in  the  store  and  is  used  
when  deliveries  have  to  be  checked.  

Below  is  an  example  of  a  typical  purchase  order.  

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Advice note

The  advice  note  is  issued  by  the  supplier  of  the  goods  ordered  by  the  
purchasing  department.    It  is  usually  issued  when  goods  are  
despatched  by  the  supplier  and  will  show:  
• that  the  order  will  be  delivered  
• when  the  delivery  is  to  be  made  
• how  it  will  be  delivered.  

An  example  of  an  advice  note  is  shown  below.  

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Delivery note

The  delivery  note  usually  comes  with  the  goods  when  they  are  
delivered.    It  usually  tells  what  the  supplier  has  actually  delivered  to  
the  store.    The  delivery  note  is  probably  the  most  important  receipt  
document  of  all,  and  it  is  the  store  manager  who  must  see  that  he  or  
she,  or  someone  he  or  she  delegates,  checks  goods  against  the  list  on  
the  delivery  note.  

Consignment note

The  consignment  note  is  issued  by  the  carrier  of  the  delivery.    The  
consignment  note  is  written  out  when  the  delivery  is  contracted  out  to  
a  third  party  for  delivery,  for  example  rail,  post  or  a  carrying  company.  

Consignment  notes  will  vary  from  warehouse  to  warehouse,  but  an  
example  is  given  below:  

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Internal packing note

An  internal  packing  note  is  used  when  you  carry  out  a  more  detailed  
check  of  the  stock  delivered.    You  make  this  check  after  you  remove  
the  goods  from  their  outer  containers  such  as  cartons,  drums  or    
boxes,  or  you  unload  them  from  pallets.  

The  internal  packing  note  lists  what  is  actually  within  each  unit  
delivered.    It  should  give  specific  information  about:  
• quantity  
• types  
• sizes  
• specifications  
• colours  
• other  identifying  features.  

On  the  following  page  is  an  example  of  a  packing  note.  

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Activity 3: Receival records

List records – apart from the delivery docket – that are used at your
warehouse when goods are received.

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_____________________________________________________

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_____________________________________________________

_____________________________________________________

_____________________________________________________

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_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

If you can, get a copy of each of the various kinds of forms that are
used and attach them to this page.

There is feedback on this activity at the back of this Learner’s


Guide.

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How are internal movements and records


managed?

The  receiving  area  provides  the  greatest  opportunity  for  error,  


pilferage  and  theft.    Set  routines  are  used  to  help  deal  with  these  
problems.  

The  following  is  an  example  of  a  set  routine  for  receiving  material  into  
a  warehouse:  
• set  time  slot  for  receiving  goods  (avoid  receiving  
unannounced  goods,  if  possible)  
• allocate  the  arriving  vehicle  to  an  unloading  point  
• brace  the  trailer  before  unloading  for  safety  and  security  
• check  load  seals,  record  their  numbers  and  note  any  that  
have  been  tampered  with  
• unload  
• check  numbers  carefully  while  unloading  
• see  that  numbers  tally  with  the  shippers  notes  (sometimes  
you  will  also  have  to  tally  against  purchase  orders,  delivery  
notes  or  advance  notices)  
• record  discrepancies  and  note  if  numbers  are  over  or  
under  and  tell  if,  and  how  many  goods  are  damaged  
• photograph  anything  that  looks  suspicious  
• carry  out  appropriate  quality  control  checks  
• assign  stock  to  appropriate  place  or  places.  

Above  all  it  is  essential  that  you  always  count  twice  before  signing  
once.  

This  example  might  be  used  with  either  a  manual  or  a  semi-­‐automated  
receival  system.  

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Activity 4: Controlling loss and other problems

Explain the differences between a manual and a computerised


system.

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

Explain what procedures you could put in place to see that loss,
pilferage, theft and damage are kept to a minimum.

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

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How do you record damage and shortage?

A  damage  report  must  record  any  disposal  method  used  with  proof  
that  an  authorised  person  or  persons  has  instructed  this  disposal.  

A  damage  or  shortage  report  is  raised  when:  


• goods  arrive  damaged  
• a  shortage  occurs  in  delivery  
• goods  fail  to  arrive  when  they’re  supposed  to.  

If  goods  do  not  arrive  it  is  important  that  the  carrier  be  told  
immediately  and  in  writing.    Send  a  message  by  fax  or  email  and  
confirm  it  with  a  letter.  

If  you  do  not  do  this  the  carrier  may  not  accept  responsibility.  

The  damage  or  shortage  report  is  filled  out  in  quadruplicate  (that  is,  an  
original  with  three  copies).    Copies  should  go  to  the  carrier,  the  
supplier,  the  invoice  department  and  one  copy  stays  in  the  warehouse.  

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What is the stock handling cycle?

The  way  goods  are  dealt  with  when  they  are  received  is  called  a  stock  
receipt  procedure.  

Stock receipt

Receiving  goods  is  called  stock  receipt.    A  normal  stock  receipt  cycle  
would  be  like  this:  
 

 
Let  us  take  a  closer  look  at  each  step  in  the  stock  receipt  cycle.  

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Notification of delivery

Notification  of  delivery  occurs  when  the  stores  department  is  told  that  
goods  have  been  ordered  and  a  date  and  delivery  method  have  been  
decided.    This  is  when  the  stores  department  makes  provisional  plans  
for  receiving  the  order.  

Confirmation of delivery

Confirmation  of  the  delivery  is  the  next  stage.    When  a  delivery  is  
confirmed  it  is  definitely  to  take  place.    Definite  receiving  
arrangements  can  now  be  made.  

Space and labour allocation

When  the  order  has  been  placed  and  confirmed,  you  have  to  see  that  
there  is  enough  space  for  the  new  delivery  (this  might  mean  shifting  
stock  which  is  already  in  the  warehouse).  

Next  you  plan  to  have  the  right  workers  with  the  right  skills  available,  
especially  if  specialised  equipment  such  as  cranes  are  required.    You  
must  also  make  sure  that  you  have  access  to  people  who  are  able  to  
carry  out  inspections  if  necessary.  

Materials handling allocation

The  next  step  is  to  finalise  material  handling  requirements.    Equipment  
for  specialised  delivery,  such  as  Forklift  trucks,  cranes,  pallets,  etc.  
must  be  in  the  right  places  when  deliveries  arrive.  

Scheduling deliveries

Working  out  when  various  things  will  be  done  is  called  ‘scheduling.’    A  
schedule  is  a  timetable  showing  when  things  are  to  be  done,  who  does  
them,  and  what  equipment  they  will  need.  

Proper  scheduling  increases  efficiency  and  will  make  sure  that  there  is  
a  steady  flow  of  deliveries  during  the  working  day.  

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Delivery of goods

After  scheduling,  all  goods  should  actually  arrive  at  the  store  or  
warehouse.    On  delivery,  warehouse  staff  must  check  delivery  notes  to  
see  that  stock  has  arrived  and  that  it  is  in  good  condition.  

Unloading and inspection

Unloading  inspections  must  be  careful  and  thorough.    This  is  a  most  
important  part  of  the  total  quality  control  process.  

Storage

Deliveries  will  usually  be  broken  down  into  smaller  units.    Storepersons  
will  then  store  them  in  shelves,  bins,  racks  or  in  other  appropriate  
places.  

Proper  placement  is  very  important  at  this  point.    If  goods  are  not  put  
in  their  right  places  and  containers,  later  checking  of  numbers  and  
quality  will  be  very  difficult.  

Notification of errors, damages and shortages

When  taking  receipt  of  a  delivery  you  may  find  that  goods  are  missing,  
damaged  or  listed  incorrectly.  

When  this  happens  you  should  immediately  notify  these  departments:  


• purchasing  department  
• production  planning  (if  your  warehouse  supplies  materials  
to  a  factory)  
• quality  control  
• stock  control  or  stock  records.  

Advice of delivery

Notify  the  purchasing  department,  production  planning  (if  relevant),  


quality  control  and  stock  records  of  all  deliveries,  so  that  they  can  
adjust  their  records.  

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Transport planned

Once  the  order  has  been  received  it  is  usually  advisable  to  give  as  
much  notice  as  possible  to  the  transport  company  about  the  size  of  
the  load,  loading  time,  delivery  instructions,  time  slot,  etc.  

Raise picking slip

The  details  listed  in  the  Notification  of  despatch  requirements  are  
entered  into  the  computer  to  raise  a  picking  slip  which  is  then  printed  
and  sent  to  the  warehouse.  

The  picking  slip  will  list  the  allocations  in  the  warehouse  that  the  
storeperson  must  select  the  stock  from.  

Upon  receiving  the  picking  slip  in  the  warehouse  the  storeperson  then  
picks  the  quantity  of  goods  from  the  warehouse  locations  which  are  
both  detailed  in  the  picking  slip.    Depending  on  the  size  of  the  
warehouse,  a  picking  slip  may  have  full  pallet  quantities  to  be  selected  
from  the  bulk  area,  cartons  to  be  selected  from  the  order  picking  or  
lose  ‘inners’  to  be  picked  from  a  split  case  area.    Alternatively  a  picking  
slip  can  be  divided  up  into  the  various  areas  of  the  warehouse.  

Pick or pack details listed by the storeperson

As  mentioned  above,  the  storeperson  may  have  a  combination  of  full  


pallets,  cartons  and  loose  items  to  be  packed.    The  storeperson  would  
normally  make  notes  on  the  picking  slip  confirming  what  they  have  
picked.    There  is  usually  provisions  on  the  picking  slip  to  write:  
• the  balance  of  goods  left  in  a  part  pallet  location  (as  a  
double  check  on  stock  accuracy)  
• which  pallets  have  been  stretch  wrapped  
• which  loading  bay  goods  have  been  placed  in  for  checking  
and  despatch  
• any  other  useful  comments.  

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Goods checked

At  this  point  the  goods  are  checked  by  a  checker  or  trainer.    This  
process  is  much  the  same  as  for  incoming  freight  which  is  checked  for:  
• correct  product  
• correct  quantity  
• correct  condition  
• no  damages,  wet  goods,  spillages    
• correctly  stacked  for  transport  
• correctly  branded.  

Confirmation of picking slip, checked onto vehicle


and delivery note raised

Once  goods  have  been  checked  they  are  loaded  onto  the  transport  
vehicle  and  the  picking  slip  is  confirmed.    Upon  confirming  all  details  
on  the  picking  slip  this  will  automatically  adjust  the  stock  records  and  a  
delivery  note  is  printed  which  lists  all  of  the  details  that  appeared  on  
the  picking  slip  as  well  as  the  transport  company’s  name,  times,  etc.  

Goods delivered by truck

The  goods  are  delivered  by  the  transport  company  to  the  destination  
and  within  the  time  frame  noted  on  the  delivery  note.    It  is  the  driver’s  
responsibility  to  ensure  that  goods  are  delivered  in  good  condition  and  
to  obtain  a  legible  signature  from  the  receiver  to  confirm  this.  

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What else do you need to know about receival?

Special deliveries

Sometimes  goods  are  delivered  at  unusual  times  or  in  unusual  ways.    
For  example,  large  items  might  require  a  special  kind  of  truck  which  
can  only  be  on  the  road  at  certain  times.    When  something  like  this  
happens  you  will  have  to  make  special  arrangements.  

Chemicals,  petroleum  products,  unusual  sizes,  weights  or  dimensions  


of  materials  or  goods  are  other  examples  of  where  special  delivery  
arrangements  might  be  necessary.  

Special handling

Some  products,  because  they  are  big,  heavy  or  potentially  dangerous,  
require  special  and  expert  handling.    Chemicals  and  explosives,  for  
instance,  will  require  special  attention.  

Internal transfers

Internal  transfer  is  the  term  used  for  moving  stock  from  one  location  
to  another  within  the  warehouse.    Each  transfer  must  have  the  
following  details  recorded  in  the  stock  control  system  as  a  means  of  
controlling  all  movements:  
• transfer  reference    number  
• date  of  transfer  
• product  code  
• product  description  
• product  date  
• where  it  is  from  
• where  it  is  going  
• quantity  on  pallet.  

The  internal  transfer  is  the  standard  document  used  to  transfer  stock.    
An  example  of  an  internal  transfer  sheet  is  shown  on  the  next  page.  

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Like  all  warehouse  forms  this  one  will  be  numbered  and  dated  and  will  
probably  also  note  the  delivery  time.  

© Australian National Training Authority 2003 Page 35


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Section 2

How do you keep accurate


storage records?

© Australian National Training Authority 2003 Page 37


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Section outline

Areas  covered  in  this  section  

Inventories  

Stock  control  

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Inventory systems

Inventory,  which  is  also  known  as  a  database  or  a  stock  record,  is  a  
record  of  all  goods  kept  in  a  particular  place.  

An  inventory  lists  the  stock  that  is  in  store  and  available  for  sale  and  
despatch.    For  efficient  operation  of  any  warehouse  the  inventory  
must  be  accurate  and  up  to  date.  

Systems  for  adding  to  or  removing  from  an  inventory  must  be  in  place.    
Similarly  there  must  be  systems  for  checking  the  accuracy  of  the  
inventory.  

Inventories  can  be  kept  manually.    In  most  businesses,  however,  it  is  
now  much  more  common  for  inventories  to  be  kept  within  computer  
systems  which  are  linked  to  accounts  and  sales  departments  some  
distance  from  the  warehouse.  

Using  a  computer  system  it  is  now  possible  for  sales  staff  to  check  the  
availability  of  some  products  in  several  different  warehouses.    They  
can  tell  where  a  product  is  stored  and  place  an  order  with  the  nearest  
appropriate  supply  depot.    The  computer  system  can  then  make  sure  
that  everybody,  the  despatch  staff  at  the  warehouse,  the  carrier,  the  
accounts  department  and  so  on,  is  informed.    The  computer  system  
also  generates  all  the  appropriate  documentation  such  as  picking  slips,  
consignment  notes  and  invoices.  

The  computer  system  will  also  be  programmed  to  look  for  things  that  
might  have  gone  wrong.    If  an  order  cannot  be  completed  because  a  
product  isn’t  where  the  inventory  says  it  should  be,  an  operator  in  the  
warehouse  will  record  this  into  the  computer,  and  the  computer  
system  will  notify  everyone  who  needs  to  know  including  the  ordering  
department  and,  if  necessary,  the  security  section.    

© Australian National Training Authority 2003 Page 39


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Activity 5: Using computers for record keeping

Does your warehouse use computers for:


• recording when stock is received?

__________________________________________________

• recording who was in charge of checking a particular shipment?

__________________________________________________

__________________________________________________

• recording what stock was on the shipment?

__________________________________________________

__________________________________________________

• recording if the goods were received in good condition?

__________________________________________________

__________________________________________________

What other information is recorded on computer?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

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Input information

In  maintaining  an  inventory  there  has  to  be  a  system  in  place  to  allow  
for  the  accurate  addition  of  new  information.  

In  a  manual  stock  control  system  all  receival  and  despatch  documents  


must  be  kept.    By  comparing  these  documents  at  any  time  you  can  
work  out  what  the  differences  are  and  these  differences  will  represent  
the  stock  in  hand.    This,  in  turn,  will  be  the  inventory.  

All  this  is  true  unless,  for  some  reason,  the  stock  counts  made  on  
receipt  and  despatch  have  been  inaccurate.  

To  deal  with  this  situation,  businesses  organise  actual  counting  of  the  
products  held  in  a  warehouse  or  storage  depot.    This  counting  is  called  
stocktaking  and  will  be  carried  out  regularly.    Some  businesses  
stocktake  yearly,  some  stocktake  monthly,  while  others  stocktake  
even  more  regularly  and  may  even  do  daily  stocktakes.  

Stocktakes  can  be  either  full  stocktakes,  when  everything  in  the  
warehouse  is  counted  and  checked  against  the  inventory,  or  partial  
when  only  the  items  in  one  section  of  a  warehouse  are  counted  and  
checked  against  the  inventory.  

© Australian National Training Authority 2003 Page 41


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Activity 6: The inventory

What is an inventory, and what kinds of things are recorded in an


inventory?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

What are the advantages of keeping a computerised inventory


system?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

What are the disadvantages of a computerised inventory?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

Explain what precautions might be necessary if you were


organising a stocktake.

_____________________________________________________

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

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Extract information

Extracting  information  from  an  inventory  is  simply  a  matter  of  


inspecting  records.    You  can  do  this  by  actually  checking  an  inventory  
or  a  stock  book.    You  can  also  conduct  a  visual  check  by  walking  along  
the  rows  of  warehouse  shelving  and  noting  precisely  what  is  stored  
there.  

Extracting  information  from  an  inventory  is  generally  simpler  when  the  
inventory  is  on  computer.  

Nowadays  most  people  can  be  trained  very  quickly  to  use  
computerised  inventory  systems  which  they  can  access  in  a  number  of  
ways.    They  can,  for  instance,  refer  to  a  product  by  name,  or  they  can  
refer  to  it  by  a  catalogue  number,  or  bar  code.  

No  matter  how  effective  the  computer  program,  there  will  be  times  
when  visual  inspections  are  appropriate.    This  is  certainly  true  when  
theft  or  pilferage  is  suspected.    It  is  also  necessary  to  check  that  
accurate  information  has  been  entered  into  the  computer.  

A  computer  cannot  tell,  for  instance,  if  a  container  actually  does  


contain  items.    All  the  computer  knows  is  what  it  has  been  told  is  in  the  
container.  

Any  inventory  program  will  then  immediately  provide  this  kind  of  
information  about:  
• where  a  product  is    
• what  numbers  there  are  of  the  product.  

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Identifying stock discrepancies

The  stocktake  is  the  means  of  identifying  stock  discrepancies  and  must  
be  undertaken  under  carefully  controlled  conditions.  

For  an  effective  stocktake  the  following  rules  should  be  followed.  
• Appoint  teams  of  two  to  stocktake  various  areas  within  
the  warehouse  –  make  sure  that  at  least  one  member  from  
each  team  is  from  another  area  or  department.  
• Get  appropriate  stock  records  and  make  sure  they  are  
given  to  the  appropriate  teams.  
• Bring  teams  together  to  give  them  instructions  on  how  
they  are  to  stocktake.  
• Stress  that  goods  must  be  seen  to  be  counted.  
• Use  inspection  sheets.  
• Do  not  allow  outsiders  into  areas  where  a  stocktake  is  
being  undertaken.  
• Persons  engaged  in  a  stocktake  must  sign  all  sheets  at  the  
conclusion  of  the  stocktake.  
• All  discrepancies  must  be  recorded  and  reported.  
• Notes  must  be  made  of  all  damaged  or  spoiled  goods.  

Produce reports

After  a  stocktake:  
• the  inventory  must  be  updated  
• investigations  must  be  launched  if  criminal  activity  is  
suspected.  

The  person  responsible  for  the  stocktake  must  report  to  management  
on  all  irregularities.    He  or  she  should  also  be  able  to  suggest  
appropriate  ways  for  dealing  with  any  difficulties  that  emerge.  

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Auditors’ checks

All  businesses  may  have  their  management,  accounts  and  inventory  


examined.    This  examination  is  known  as  an  audit.    Audits  are  carried  
out  by  a  specialist  accountant  known  as  an  auditor.  

Auditors  have  the  right  to  ask  to  see  any  record,  any  piece  of  
equipment  or  any  goods  belonging  to  a  business.    Part  of  an  audit  will  
always  be  a  check  of  materials  held  in  store  and  this  is  usually  done  on  
a  random  or  spot  check  basis.    The  auditor,  for  instance,  might  note  
that  the  inventory  says  there  are  twenty-­‐four  boxes  of  a  particular  
product  in  a  store  and  will  ask  to  be  shown  these  boxes.  

An  auditor  can  also  ask  to  have  a  shipping  container  opened  in  order  
to  check  that  it  contains  the  goods  the  inventory  says  it  contains.  

If  the  auditor  is  not  satisfied  with  the  results  of  these  spot  checks  he  or  
she  can  demand  a  full  and  closely  controlled  stocktake.    The  auditor  
may  also  demand  that  outside  stocktaking  clerks  are  brought  in  to  
work  on  the  stocktake.  

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Activity 7: The inventory, stocktaking and auditing

Write brief notes to answer the following questions. For help refer
to the text.

Why is a computerised inventory system valuable?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

When might it be unnecessary to have a computerised inventory


system?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

Why are checks on an inventory necessary?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

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What is a stocktake?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

What powers does an auditor have?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

© Australian National Training Authority 2003 Page 47


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Section 3

Receival problems

© Australian National Training Authority 2003 Page 49


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Section outline

Areas  covered  in  this  section  

Receival  problems  

How  to  report  problems  and  improve  these  processes  

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Stock receival problems

Managing  stock  into  and  out  of  a  warehouse  often  involves  problems.    
Many  of  these  can  be  avoided  particularly  if  the  reasons  they  arise  are  
properly  understood.  

Delays

Delays  in  receiving  goods  can  and  do  occur  frequently.    Problems  
usually  relate  to  production  and  delivery  difficulties.    These,  in  turn,  
can  relate  to  things  that  we  call  natural  causes.    Flooding,  for  instance,  
might  damage  a  road  system  and  make  it  impossible  to  deliver  a  raw  
material  to  a  processing  plant.  

A  frequent  cause  of  delay  is  industrial  trouble.    Strikes,  go-­‐slows  and  
boycotts  can  all  affect  a  supply  system.    Industrial  action  by  transport  
workers  either  in  Australia  or  overseas  can  delay  deliveries  to  your  
warehouse.  

Incorrect orders

Another  major  cause  of  difficulty  in  the  warehouse  is  incorrect  
ordering.    If  incorrect  information  is  given  in  a  supply  document  such  
as  a  purchase  order,  a  delivery  can  be  made  up  incorrectly  and  
despatched.    When  the  error  is  discovered,  the  order  must  be  returned  
to  storage,  and  a  correct  order  made  up.  

Human resource shortage

Human  resources  are  the  people  who  work  in  a  business.    This  includes  
workers  at  all  levels  –  managerial  and  administrative,  technical  
cleaning  staff,  warehouse  staff,  drivers,  sales  staff  and  so  on.  

Sometimes  delays  can  occur  when  numbers  are  reduced  for  the  
following  reasons:  
• illness  
• poor  scheduling  
• growth  in  business  has  outstripped  staff  number  
• a  company  policy  to  dismiss  staff.  

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Equipment shortages and breakdowns

Equipment  shortages  and  breakdowns  can  also  affect  deliveries.    The  


risk  of  equipment  shortages  can  be  kept  small  with  proper  attention  to  
stock  supplies  and  ordering.  

Similarly  the  risk  of  equipment  breakdown  can  be  kept  small  by  setting  
up  effective  inspection  and  maintenance  programs.  

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Activity 8: Receival problems

Make a list of the major receival problems you have noted in your
warehouse over the past two weeks.

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

Discuss these with your trainer

Which problems on your list could have been avoided?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

What steps might be taken to see that difficulties like the ones
you’ve talked about are handled efficiently if they happen again?

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

_____________________________________________________

There is feedback on this activity at the back of this Learner’s


Guide.

© Australian National Training Authority 2003 Page 53


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Page 54 © Australian National Training Authority 2003


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Additional
resources

© Australian National Training Authority 2003 Page 55


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Paper  based:  
• workplace  reports  
• issues  arising  from  meetings  and  day-­‐to-­‐day  work  
• flowcharts  used  in  the  workplace  to  describe  work  processes  
• discussions  with  teams  
• quality  manuals,  SOPs,  etc.  

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Feedback on
activities
The responses provided in this section are suggested responses.
Because every workplace is different, your responses may vary
according to your specific workplace procedures, the equipment
available and the nature of the business.

© Australian National Training Authority 2003 Page 57


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Activity 1: The receiving areas

You should be able to find the answers for 1, 2 and 3 in


Occupational Health and Safety documents in your workplace or in
your company’s procedure manuals. Check with your OHS officer.

If an accident happens:

- who should you tell?

- what records must be made?

Procedures for dealing with accidents should be displayed in your


workplace. They will involve taking first-aid steps, calling for
qualified help, reporting orally to a trainer and preparing a written
report, or filling in an accident report form.

If you are using a trolley, what precautions do you need to


take?

Check that the trolley is in good order and use it with proper care.

If you are using a knife, what precautions do you need to take?

Knives must be sheathed when not in use. You should always cut
away from your body.

If a Forklift is needed, who is allowed to drive it?

Only licensed Forklift drivers.

Activity 2: Your warehouse procedures

Answers will vary although most of the listed procedures will be


relevant:

sometimes Forklifts might not be used

sometimes mobile picker’s chairs will be used

sometimes there will not be computers

sometimes security will be more or less strict.

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Activity 3: Receival records

Most of the records listed on the previous pages will be used in


most warehouses.

Activity 4: Controlling loss and other problems

In general, procedures would be slower with a manual system.


You may have listed some specified differences based on manual
systems and computer systems you have experienced.

Activity 5: Using computers for record keeping

The ‘answers to all sections will probably be ‘Yes’.

Computers may also record staffing details, details of stock


location, etc.

Activity 6: The inventory

An inventory is a list of goods and equipment.

Computerised inventories are more efficient. They can be checked


and kept up to date more easily.

They may be too accessible (and too easy to make changes to).

Have stocktakers work in pairs with one always from another area
or department.

Make stocktake area free from outsiders, friends, spectators, etc.

Activity 7: The inventory, stocktaking and auditing

it is efficient, saves time and is more easily managed than a


manual system

for small stores with limited stock range

to protect against loss, theft and damage

account of products actually held so you can compare this with


inventory records

© Australian National Training Authority 2003 Page 59


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auditors can demand to see any item in an inventory or check any


stock record

Activity 8: Receival problems

Problems will vary but probably relate to such things as delays in


receiving goods, incorrect orders, human resource shortages,
equipment shortages and breakdowns.

Theoretically, all problems can be avoided (or at least minimised)


by applying well thought-out procedures.

Your answers will depend on the problems you identified but may
include:

training

supervision

better rostering of staff

checking and maintenance of equipment

better communication

changes to procedures/new procedures.

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