TECHNOLOGICAL UNIVERSITY OF

CANCUN
Economic-administrative
Logistics

‘Resume of the warehouse control, inventory management and

purchasing administration.
Student name: Ruiz Cruz Marlon Antonio
Teacher: Myriam López Pérez
Group: DNM42
18/02/2023
Warehouse control
Through the knowledge acquired during the classes we have determined key
concepts that help us in understanding the topics. The definition of warehousing
and inventory storage are not a moder concept. According to Robert Hughes,
warehousing is a set of activities that are involved in receiving and storing goods
and preparing them for reshipment. It is deemed that warehousing not only serves
as a storage facility, but as hub for various other activities, such as receiving,
identifying, holding, and assembling inventory and ensuring its availability to meet
the demand. The concept of warehouse control refers to the supervision of all
processes taking place in a logistics facility.
To make sure that goods are shipped without error and at the right time. To have
an agile, flexible supply chain adaptable to market changes, your first need to
understand it inside and out. Companies
that analyze everything occurring in their
warehouses and control product
movements accurately can make
strategic decisions. We can define
warehouse control as the set of actions
aimed at properly managing goods in a
logistics facility: from knowing the amount
of stock available to tracking the
movements required to dispatch orders.
The main purpose of any warehouse is to
supply customers, production centers, points of sale, or other facilities with the
items requested at the appropriate time.
If you don’t keep close control over your operations, you’ll run into major difficulties
when it comes to order shipments. For example, if a business doesn’t know exactly
how many items it has stored, it will be incapable of effectively organizing
replenishment. Consequently, stockouts can happen, slowing down order
processing tasks.
Organizations can monitor the performance of their operations, from receiving
goods to sending orders, to introduce improvements that help increase productivity.
This helps for continuous improvement aimed at making small but continuous
changes that eliminate unproductive dynamics.
Logistics facilities are key for proper business development. Inefficiency in any
operations has a direct impact on customers satisfaction and the rest of the supply
chain processes. This is why supply chain managers are constantly concerned with
analyzing the status of the warehouse to detect problems and solve them as soon
as possible.
Inventory management
Inventory management is the branch of business management that covers the
planning and control of the inventory. We have discussed priority and capacity
planning and control. Priority planning determines what material are needed and
when they are needed to meet customers’ demands. Capacity planning determines
the amount of capacity required in each period to execute the priority plans. There
are various ways to conduct priority and capacity planning: a ‘’feasible’’ solution
that satisfies a customer’s requirement may not be good enough. We demand a
‘’’good’’ plan that satisfies customers while maintaining the lowest possible total
cost.
Inventory management is the most significant part of the working capital
management in majority of the business organizations since inventories constitute
on an average about 60 percent of the current assets. The success of any industry
depends upon the effective utilization of its inventory. The inventory manager is
expected to ensure right inventory at right time with right quality from a right place
at right price in order to minimize the cost of manufacturing of products or services.
The most difficult area to the management of a firms is the management of
inventory. For any organizations, it is possible to reduce its level of inventories to a
considerable extent without any adverse effect on the production and sales, by
using the simple inventory management techniques. This reduction of inventory
volume carries a positive impact on the profitability of the organizations.
The most difficult area to the management of a firms is the management of
inventory. For any organizations, it is possible to reduce its level of inventories to a
considerable extent without any adverse effect on the production and sales, by
using the simple inventory management techniques. This reduction of inventory
volume carries a positive impact on the profitability of the organizations.
Raw material: these are the basic materials that are converted into finished
products ready for consumption, which can be stored for future production.
Work- in- process: this is the stage at which further process is required to reach
the final stage of production.
Maintenance, Repair, and Operation Supplies (MRO) Items used in support of
general operations and maintenance such as maintenance supplies, spare parts,
and consumables used in the manufacturing process and supporting operations.
Finished goods: this is the stage of the products which are ready for consumption.
The objectives of the inventory management are to ensure maximum and
uninterrupted production with minimum investment in inventory. Thus, the efficient
inventory management results the following advantages.
Purchasing administration.
There does not exist many definitions of Purchasing Management and the
difference to the well know concept strategic purchasing is not very clear. Strategic
purchasing is often described and defined as: when purchasing activities are linked
to the corporate strategic planning process. Here is one more explicit definition of
strategic purchasing written by Carr and Smeltzer (1997). ‘’Strategic purchasing is
the process of planning, implementing, evaluating, and controlling and operating
purchasing decisions for directing all activities of the purchasing function toward
opportunities consistent with the firm’s capabilities to achieve its long-terms goals.’’
The main focus of this models is that purchasing Management is located at the
boundary between a corporate organization’s external and internal business
network. The business network is defined as a network of activities, resources and
actors( Ford, et al., 2003). On the internal side of the business network the
activities are often represented of internal process within the own organization and
resources are often owned by the focal firm. The resources are owned by suppliers
or jointly owned by different actors such as competitors, customers, and suppliers.
The actors on the external side of the industry network are primarily the suppliers.
Internal network of activities, resources, and actors.
Internal organizational tasks.
• Collaborate with the internal network.
• Operating purchasing decisions.
• Define purchasing strategies.
• Organize the boundary interaction.
External collaboration tasks:
• Mange suppliers
It is often considered interchangeable with the term procurement process, but the
purchasing process itself is more confined to obtaining goods and services, while
procurement refers to the overall framework established to optimize that
purchasing for maximum value, savings, and efficiency. A better synonym for the
purchasing process is the procure-to-pay(P2P) process. The purchasing process
is, at its most basic, as simple as conducting a transaction.
Bibliographical sources
ALAN RUSHTON, P. C. (2014). THE HANDBOOK OF LOGISTICS AND
DISTRIBUTION MANAGEMENT. Kogan Page; Edición 5th ed. (3 enero 2014).
MPWANY, M. F. (4TH de JULY de 2005). INVENTORY MANAGEMENT. Obtention de BUSINESS
MANAGEMENT https://blog.gieicom.com/warehouse-control-system-por-que-es-
importante-implementarl T%20o-en-tus

LARS BEDEY, S. E. (December de 2008). CHALMERS. Obtention PURCASING

MANAGEMENT:
file:///C:/Users/usuario/Downloads/Book_PURCHASING%20MANAGEMEN
T%20(2).pdf
 LOGISTICS AND TRANSPORTATION

CHECKLIST
LOGISTIC A1U1
Objective of the activity:
Integrating the concepts for the unit 1
Product: Resume
Instructions
Make a summary of the unit that includes the most relevant aspects of the following
points. The abstract should not exceed three pages in content, add cover with general
data and bibliography. Individual work.

1. Warehouse control
2. Inventory management
3. Purchasing administration
The cover is not part of the evaluation, but if it is not included, 10 points are deducted
from the evaluation.

Comments or
Criteria Value Graded
observations
Cover -10

Warehouse
23%
control
Inventory
23%
management
Purchasing
23%
administration

Conclusions 11%

Bibliography (APA
10%
format)
Presentation
(spelling, writing, 15%
content and form)

FINAL AVERAGE 100%