Corporate Procedures

CP
Process Procedures
PP

Operative Documents OD

Process: Operative Processes Management

PP-OPS-B-01-MY-02
WAREHOUSE PROCESS

1. DOCUMENT PURPOSE .................................................................................................................2

2. FIELD OF APPLICATION ..............................................................................................................2
3. REFERENCES .............................................................................................................................2
4. DEFINITION AND ABBREVIATIONS .................................................................................................2
5. DESCRIPTION .............................................................................................................................2
6. FLOW CHART .............................................................................................................................5
7. PROCESS INDICATORS ................................................................................................................6
8. ATTACHMENTS ...........................................................................................................................6

Rev index Issue date Description

00 10 Jan 2017 • General review
01 18 Jan 2018 • Change new logo for Warehouse Process
02 28 Feb 2019 • Re-Structuring of the Warehouse Process

Drafted by Verified by Approved by

Confidential Level

X Green: available to all Yellow: available under non disclosure Red: available only upon Management
agreement approval
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Warehouse Process

1. Document purpose
To define and ensure materials / goods received and issued are with proper control and checking accordance with
the present procedure and ensure the receiving / issuing process with proper methods.

2. Field Of Application
This procedure shall apply to materials purchased and goods sold that carried out by Marelli Motori Asia Sdn. Bhd.
at the Warehouse in Shah Alam, Malaysia.

3. References
• ISO 9001
• ISO 14001
• OHSAS 18001

4. Definition and abbreviations

• DO: Delivery Order
• GRN: Goods Receipt Note
• NC: Non-Conformity
• QC: Quality Control
• WH: Warehouse
• Qty: Quantity
• MMA: Marelli Motori Asia Sdn. Bhd

5. Description
5.1. Receiving and Storage Operation

5.1.1. Suppliers are required to provide notification on the incoming materials together with the
packing list at least three(3) calendar days in advance to the Warehouse Executive via the
nominated and approved communication methods . A confirmation shall then be provided
by the Warehouse Supervisor / Executive to the suppliers once the notification and packing
list is received without any dispute. It is the responsibility of the Warehouse Supervisor /
Executive need to to review, check and compare against the planning requirements. Should
there is any dispute on the incoming materials, the Warehouse Supervisor / Executive shall
inform the supplier immediately.
5.1.2. Sales Admin to provide copy of packing list and local suppliers to provide Picking list,
Invoice and DO to WH workers for materials receiving purpose.
5.1.3. For local material, the supplier DO should include important information such as date, part
number, description and quantity. For import material, the pack list should include the same
information as local supplier DO.
5.1.4. WH workers shall receive the materials based on the packing list and DO.
5.1.5. For import materials, if duplicated copy packing lists are incorrect or missing, WH workers
should request the copy from Procurement / Sale Admin before receiving while for local

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material, if supplier’s DO is incorrect or there is any quantity or quality issue on the incoming
materials, WH workers should clarify with the delivery courier / forwarder / broker and
provide feedback to Procurement / QC Department immediately. The materials shall not be
accepted by the WH workers i.e. signing of the DO until the issue is resolved. Only then,
the delivery courier / forwarder / broker is allowed to leave from MMA’s premise .
5.1.6. Upon receipt of imported cargoes container, WH workers should check if the container and
cargoes are in good condition using the Incoming Container Checklist. The quantity of
cartons / crates and pallets should be consistent with the packing list. WH workers to
undertake a sampling check on the incoming materials to ensure the quantity tally with the
carton label or case label mentioned. If any cartons / crates or pallets are damaged,
container seal broken, visible moisture inside the container or quantity is inconsistent with
the packing list provided, WH workers should take photos and send all details by email to
Procurement / Sales Support / QC Department. Procurement / Sales Admin Department
should inform supplier immediately to ensure the right of claims to be reserved before
supplier on site (if necessary) verification.
5.1.7. All materials received should be entered into Warehouse Inventory Posting Report in excel,
located in Warehouse sharefolder.
5.1.8. WH workers will then transfer the materials to WH area and provide packing list or DO
documents for QC inspection as per QC Incoming Material Control Plan requirements.
5.1.9. When the materials are accepted by QC, QC will apply the QC Accepted Label on the
inspected materials. If material was not accepted OR being put On Hold OR rejected by
QC, the material would be temporary kept in QC area until further notice from QC.
5.1.10. Once materials rejected by QC, the NC process would then be carried out. A discussion
with the Supplier should be initiated and executed by QC to resolve the issue. Should the
materials are then accepted,a QC Accepted label shall then be fixed by QC, otherwise the
materials should be processed for rework / return to supplier or scrap.
5.1.11. After QC has accepted the materials, WH workers should transfer the materials to
warehouse storage area and update related information into the stock card accordingly.

5.2. Materials / Goods Issuing and Delivery

5.2.1. WH workers will issue materials accordingly once they have received Materials Requisition
Form from Manufacturing. Material requisition need to submit to warehouse before 3pm.
5.2.2. For motors or parts delivery arrangement, Sales Admin / Service Operation will provide
Warehouse Shipment Form that generated from Navision System, WH workers will pick
related motor or parts accordingly for delivery arrangement.
5.2.3. For alternators or parts delivery arrangement, Sales Admin / Service Operation will provide
Pick Instruction Form that generated from Navision System, WH workers will pick related
alternators or parts accordingly for delivery arrangement.
5.2.4. WH workers will load the motors / alternators finished goods or parts to the vehicles or
containers according to the documents provideds.
5.2.5. All issuance needs to be recorded in the Warehouse Inventory Posting Report.

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5.3. Scrap Management

5.3.1. Sources of scrap are received from QC and Production.

5.3.2. Once NC for scraps approved from Operation Manager and transferred to warehouse,
warehouse staff need to confirm the quantity and inform Warehouse
Executive/Supervisor.

5.3.3. Physical of scrap need to relocate to dedicated area. Quantity in Navation system need
to transfer from MMA to Damage location. Transfer Order need to be printed, record the
details into Warehouse Inventory Posting Report and do filing of the TO printed.

5.3.4. Every months, warehouse need to inform Procurement to call in truck for scrap disposal.

5.3.5. DO of scrap items need to be submitted to Procurement and Finance once the document
is available.

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6. Flow chart

Procurement / Warehouse QC
Sales Admin /
Local Supplier

Start
Receive import or
local material with
documentation

Provide packing list or

Delivery Order (DO)
documents

Check of Go through
Accept materials Accept Incoming
Yes
packaging Materials
appearance & Control Plan
Qty

Reject No

Take pictures and

Procurement / inform QC /
Sales Support to Procurement /
generate GRN Sales Support for
further action

QC inspection

Accept
Deliver materials with QC will feedback
QC Accepted Label about final result

Use as it Reject

Move materials to
warehouse storage NC Process
area and update stock
card data
Reject

Issue and delivery Rework / Return to

materials / goods supplier / scrap
according to the
documents provided

End
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7. Process Indicators
7.1. The process indicators are set as below and monitor in monthly basic.

7.1.1. Monthly MMA Warehouse Dept. Cycle Count accuracy (%); High value and high variance
items.

7.1.2. Monthly Incoming Materials (By Sea) container detention charges (RM)

8. Attachments
• Incoming Container Checklist.

• Stock Card.

• Material Requisition Form.

• Warehouse Shipment.

• Pick Instruction Form.

• Forklift / Reach Truck Daily Checklist.

• Scrap Form

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