Arowwai

Industries

PHYSICAL INVENTORY
AND WAREHOUSE
MANAGEMNET
Presented by: Ranz Michael C.
Peralta - SPETOMA XTEM1
 INTRODUCTION
Physical inventory is a process consisting of counting stock in the facility to know how much
is available. Proper goods management prevents stockouts and excess goods, (more
commonly known as overstock).
As this constitutes a manual process, it can be extremely labour-intensive. It involves the
participation of a great deal of warehouse staff, so it needs to be optimally organised to be
carried out as quickly and effectively as possible.
Depending on the needs of the company and the number of products available, inventory can
be perpetual, yearly, or cycle counts. In any case, it should coincide with periods of less
activity to thereby allocate more employees to this operation and carry it out more quickly,
with less errors and without interrupting other tasks.
IMPORTANCE OF
PHYSICAL
INVENTORY
Inventory Control is crucial for a business, as it
results in increased productivity. Knowing the
precise location of each product facilitates picking
and avoids delays, which translates into greater
customer satisfaction.
Physical inventory counts help to identify
imbalances, examine their causes, and prevent them
from happening again. For example, an operator
might not be able to find a product theoretically in
stock. An inspection of the entire warehouse reveals
that the product in question was in the wrong
location, and measures could then be taken to guard
against this type of mistake.
 WAREHOUSE MANAGEMENT
Warehouse management refers to the process of executing, monitoring, and optimizing
warehouse operations. In other words, warehouse management involves overseeing any
activities that go on in a business’s warehouse, including inventory reception and storage, order
fulfillment, and shipping.
Proper warehouse management is what will determine how successful a business will be.
 WAREHOUSE MANAGEMENT SYSTEM
A warehouse management system or WMS is software designed to optimize operational
processes in a warehouse. By implementing a WMS, you have full visibility into real-time
inventory levels and storage, staff productivity, demand forecasting, and order fulfillment
workflows within a warehouse.
Warehouse management systems are important as they eliminate manual processes and
guesswork and instead streamline processes that save time, and provide a more accurate
snapshot of what’s going on inside a facility without needing to conduct continuous warehouse
audits.
Warehouse management software provides the tools to drive strategic big picture
improvements as well as those to monitor the day-to-day. What a management team sees in
the warehouse management system will be different from a picker or packer who relies on the
system to know what to pick or pack next on the warehouse floor.
Resources:
Istiqomah, N. A., Sansabilla, P. F., Himawan, D., & Rifni, M. (2020, July). The implementation of barcode
on warehouse management system for warehouse efficiency. In Journal of Physics: Conference
Series(Vol. 1573, No. 1, p. 012038). IOP Publishing.

Gills, B., Thomas, J. Y., McMurtrey, M. E., & Chen, A. N. (2020). The Challenging Landscape of Inventory Management.
American Journal of Management, 20(4), 39-45.