TLIA3039

Receive and Store Stock

Learners Guide

TLIA3039 - Receive and Store Stock Learners guide. V1.0. 02/10/2019

How is stock received at your workplace?
Systems for maintaining stock are important to make sure that work is not held up or
delayed while essential supplies are being ordered. As stock is received in your workplace,
checks need to be made so that what is actually paid for or billed is actually received and is
in good condition.
Other considerations include making sure that stock does not have to be thrown out
because it has passed its use by date or has reached the point where it is no longer able to
be used. Foodstuffs, film, medicines and chemicals are examples of stocks that have to be
used by a certain time. Safety is also important, as some supplies cannot be stored with
others - imagine storing poisons with foodstuffs!
Workplaces have systems in place to ensure that stock is:
 available when it is required
 fit for use
 managed cost effectively and wastage is kept to a minimum.
Every workplace will have differences in how stock is ordered, received and stored. Your
first task will be to become familiar with the stock receiving area and understanding how
stock is processed. You may have worked in the area that is responsible for ordering stock or
even had to order stock yourself. Understanding the ordering system will help you
understand what is required in the receiving area.
What do you do when stock is received at your warehouse?
So far, you have looked at how stock arrives at your workplace. The next step to look at is
what you do with the stock when it arrives. While some enterprises have moved to
paperless offices and processes, most of the stock arriving at your workplace will have a set
of documents attached or inside the stock containers.
The types of documents associated with receipt of stock are:
 purchase order (this will be generated at your workplace)
 consignment note (this will detail transport details, quantities
sent, identifiers of company supplying, etc)
 packing slip (this is an internal document advising the packer for the supplier what to
pack and may not always be included or the consignment note and packaging slip may
be the same document)
 invoice (this will come from the supplier and include transport
or delivery costs and quantities and types of items supplied).
These documents might be found:
 inside the stock
 attached to the stock
 loose with the stock and handed over by the deliverer
 sent separately via mail, fax or email.

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TLIA3039 - Receive and Store Stock Learners guide. V1.0. 02/10/2019
It is critical to have a record of what was ordered, what was supposed to arrive and for you
to check that the stock actually arrived. Also, the stock must be checked to ensure that it is
fit for use.
For example, in the paper industry, a roll of paper that will have plastic or foil laminated
onto it, may arrive without any protective layer as the first hundred meters will be wasted in
setting up the machine and getting it running correctly. The edge may be trimmed in the
process. The excess acts as appropriate packaging for the roll of paper and is allowed for. If
the outer layer is marked, this will not matter as it is trimmed off or wasted.
In many workplaces, the deliverer cannot leave until the receiver provides a signature on
the suppliers' documentation. In most enterprises, the signing of this document indicates
that the goods arrived as listed on the consignment notice. In this case, it should not be
signed unless the stock has been checked.
When checking stock, the stock received should be counted and checked to see that
quantities match that listed on the consignment note. At the same time, the stock should be
checked for:
 damage that means stock cannot be used
 fitness to use (spoiled, soiled, dinted, cracked, etc.)
 use by date (freshness, viability, etc.)
 colour, size (stock may be of the correct number but wrong
size, colour, etc.).
Where any variations or problems with supplied stock are identified, check workplace
procedures that apply to this situation.
Options include:
 replacement
 credit
 disposal and credit
 selling off as 'seconds'
 repair and charging to supplier
 return to supplier.
In most cases, a phone call and discussion with the supplier can sort out the situation. The
relationships between the receiver of the goods, the deliverer and the supplier are
important. Good relationships built up over time, through patience, being reasonable and
using positive communication skills (listening, questioning, not being aggressive) will mean
that when a problem exists, it can be sorted out more easily.
The option taken when there is a problem with supply of ordered stock will
depend on factors such as the value of stock, urgency of need for stock,
replacement time, whether supplier is internal or external.

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TLIA3039 - Receive and Store Stock Learners guide. V1.0. 02/10/2019
A common problem with stock ordering is where the supplier cannot deliver the quantity
required and places a 'short order' - in other words, if 500 items are required and only 250
can be supplied, these will be delivered and the remainder of the order delivered as and
when it becomes available. The short fall in the stock received should be noted and
reported according to workplace procedures.
The below document if also often referred to as a “Receiving Action Sheet” or a
“Discrepancy Report” It is used to account for any differences, whether it be quality or
quantity issues that arise during the receival of goods.

Problem Action
Goods arrive damaged Usually taken to a special area set aside
for damaged goods. A damage report form
is then filled out. It is from this damage
report form that’s claims against the
supplier or carrier are made.

Not enough good arrive (Under Supply) A discrepancy report must be completed.

Non Deliveries The Carrier and supplier are immediately

notified in writing.

Example Damage Stock Sheet

1. Details of items from your inventory

Page No. Item No. Age Value Full Description of Items Full Details of Loss/Damage

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Putting Goods away
Once the goods have been checked and accepted as scheduled, they are formally entered
onto the ‘stock on hand’ record system. This system is used to produce a Putaway label.
Manual labels can also be used to trap the inventory but do not produce a putaway label.

Where and how is stock stored?

This may involve storing stock that has special requirements for handling and storage and
completing records and documentation. Once the stock is received and checked against
what was ordered and delivered, the stock must be stored. A number of factors will have
been considered in designing the storage area:
 people safety when storage area is entered
 available space
 shape of containers or stock (drums, on pallets, cartons, racks
or shelves, etc.)
 maintenance of condition of stock (protection from water,
dirt, sunlight, physical damage)
 security of stock
 cost of storage equipment (shelving, racks, trays, other)
 availability of mechanical aids for moving stock (forklift, hand
trolleys, carts, etc.)
 minimising distance and number of times that stock is moved
 stock rotation to ensure older stock is used first and before use by date. Ie. Applying
FIFO principles
 are goods fast moving, medium moving or slow moving?
 whether stock is itself hazardous (separation of some chemicals from other chemicals
that could cause ignition or explosion; radiation; flammability and flash point; biological

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 material that is potentially or actually harmful to humans; other dangerous goods
classifications)
 other issues such as those faced where living material is stored or where refrigeration is
required.

When storing stock, your aim should be to complete the process of storage as quickly as
possible and in a safe manner. Associated with this task is the need for accuracy in placing
stock in locations that follow the stock storage system and accuracy in recording what you
have stored.
What's involved in stock storage?
Safety is the primary concern of all enterprises and applies to stock storage. Safety issues
are relevant to:
 yourself and other team members involved in stock storage
 team members passing through the storage area
 team members accessing stock from storage.
When storing stock, you should ensure that you do not injure or harm yourself or others.eg.
apply safe manual handling techniques, make sure workers are clear when using forklifts to
locate stock in pallet racking.
Regulations apply to the handling of a range of hazardous substances. Examples include:
 flammable substances
 radioactive substances
 biological materials
 heavy objects
 explosive goods.
Legislation and regulations cover the handling of such substances under the Australian
Dangerous Goods (ADG) Code. Goods covered by this legislation must also be labelled
appropriately and may have particular storage requirements. Check with your supervisor or
trainer for advice on whether stock that you are required to handle and store comes under
this Code and what is required to safely handle these goods.
Some categories of dangerous goods must be segregated from other stock. Examples
include foodstuffs and corrosive substances. Dangerous goods should be labelled
appropriately.
Eg.

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What records are kept?

Many enterprises have a computerised system for recording stock levels. Paper-based
systems might also be used although these are being replaced in many enterprises.
Regardless of how the system is designed, the system will only track stock if the information
on stock received and used or despatched, is accurate and entered in a timely manner.
Some industry environments usually allow for a 1% 'shrinkage'. This allows for theft,
unreported use and breakage and errors. It is possible to achieve accuracy close to or at
l00%, provided:
 the system being used is accurate and not able to be corrupted (by viruses,
unauthorised entries, etc)
 all users enter information into the system in a timely and accurate manner
 all users are trained in how to use the system checks are made to ensure system is
accurate.
What labelling is required on stock in storage?
If stock is placed in storage without a label, then it can get confused with other stock,
particularly where similar looking items are stored. Some enterprises use bar coding and a
hand held scanner to keep track of stock. This is an easy way to do a stock take as items can
be scanned, the information down loaded onto a computer and compared to what should
be in stock. This is in fact done in supermarkets. Information such as stock approaching use
by dates can also be identified from the scanning of the bar code.
Putting items into containers that are labelled can be an alternative to marking each item
and suits small, numerous items such as bolts, screws and nails of different sues. This
system is used in hardware stores.
Labelling requirements will depend on factors such as:
 size of individual items
 end use of item
 regulations and legislation
 storage systems
 similarity or difference of items (whether items can be confused with each other)
 range within same items (sizes and colours of same items).

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TLIA3039 - Receive and Store Stock Learners guide. V1.0. 02/10/2019
How is stock maintained?
An ideal stock storage system allows for stock to be:
 always easily located
 moved around as little as possible (not 'double-handled')
 used before reaching use by date
 counted easily
 secure
 safely stored.
Stock does not move by itself. So, any problems with stock storage are caused by human
intervention. Often this will be someone 'just grabbing something quickly because it's
needed urgently!' Therein lies the problem -human error!
One of your tasks in the stock control area may be to 'go and tidy up the shelves'. This can
be a tedious job but does get you familiar with stock identification and let's you learn more
about how the system works (or doesn't work).
At other times you will be asked to join in a stocktake that may involve a number of your
fellow team members. The purpose of a stocktake is to check quantities of stock and the
quality of that stock An annual stocktake is done for taxation purposes but smaller
stocktakes will be undertaken during the year, often on a section of the storage area.

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TLIA3039 - Receive and Store Stock Learners guide. V1.0. 02/10/2019