Workplace Assignment 3: Maintain the stockroom

3.1.1) The physical and logistical layout of a stockroom is designed with several key objectives to
enhance efficiency, accessibility, and overall operational effectiveness. Here are the primary reasons
for carefully planning the layout:

Optimal Space Utilization:

• Reason: Efficient utilization of available space is crucial to maximize storage capacity and
accommodate a larger volume of inventory.
• Outcome: Well-organized shelving, racks, and aisle arrangements ensure that every square foot of
the stockroom is utilized effectively, reducing wasted space.

Facilitate Quick Retrieval:

• Reason: A logical layout minimizes the time and effort required for staff to locate and retrieve
items.
• Outcome: Clearly defined aisles, organized shelving, and proper labeling contribute to quick and
accurate item retrieval, improving overall productivity.

• Enhance Inventory Visibility:

• Reason: A well-organized layout allows for better visibility of inventory levels and stock conditions.
• Outcome: Staff can easily assess stock levels, identify low-stock items, and monitor inventory
conditions, leading to proactive inventory management.

• Support Efficient Workflows:

• Reason: The layout is designed to support the natural flow of work activities, from receiving goods
to storage, picking, and packing.
• Outcome: Streamlined workflows reduce unnecessary movement, minimize congestion, and
improve overall operational efficiency.

• Minimize Handling Errors:

• Reason: A clear and organized layout helps minimize errors during stock handling and picking.
• Outcome: Properly labeled storage areas and aisles, along with a logical arrangement of products,
contribute to accuracy and reduce the likelihood of errors in inventory management.

• Promote Safety:
• Reason: A well-designed layout considers safety aspects, preventing accidents and injuries.
• Outcome: Clearly marked pathways, designated storage areas, and adherence to safety regulations
contribute to a safer working environment.
3.1.2) The Outline of my storeroom:

3.1.3) Provide a document that explains how stock is stored in the DC. (see end of doc)

3.2) How to pack stock

3.2.1)

Stock Moving Equipment Explanation

Equipment Description Forklift Description: Forklifts are used for lifting
and moving heavy pallets or goods within the
stockroom. They have forks that can be raised
and lowered for efficient stacking and retrieval.
Forklifts come in various types, such as
counterbalance and reach trucks
Conveyor System Description Conveyor systems facilitate the automated
movement of goods, streamlining the process
of transporting items from one area to another.
They are commonly used for continuous and
efficient material handling
Pallet Jack Description Pallet jacks, also known as pallet trucks, are
manual or electric devices designed for lifting
and moving pallets. They are particularly useful
for short-distance transport within the
stockroom and loading/unloading trucks
Automated Guided Vehicles (AGVs) Description Automated Guided Vehicles (AGVs) Description:
AGVs are autonomous, programmable vehicles
that navigate through the stockroom using
predefined paths. They are used for
transporting goods without human

Reach Truck Description
Vertical Lift Module (VLM) Description
Conveyor Sortation System Description:
Tugger Cart System Description
Order Picker Description:
These stock moving equipment types play crucial roles in various material handling tasks within the
distribution centre, contributing to the overall efficiency and productivity of the supply chain
operations.
intervention, enhancing efficiency in material
handling processes.
Reach trucks are narrow-aisle forklifts designed
for use in tight spaces. They have extended
forks that can reach into racks for efficient
stacking and retrieval of goods at elevated
heights.
Hand Trucks Description: Hand trucks, also
known as dolly carts, are manual devices with
wheels designed to transport smaller loads.
They are versatile and commonly used for
moving individual items or boxes within the
stockroom.
VLMs are automated storage and retrieval
systems with vertically arranged trays or bins.
They optimize vertical space utilization and
enhance picking efficiency by bringing the
required items directly to the operator
Conveyor Sortation System Description:
Conveyor sortation systems automate the
process of sorting and diverting products based
on predetermined criteria. They are essential
for high-speed sorting and routing of items to
their designated destinations within the
stockroom
Tugger carts, pulled by a tugger vehicle, are
used in a material handling system where
multiple carts can be connected in a train-like
fashion. They are efficient for moving batches
of goods or handling materials in a sequence.
Order pickers are specialized lift trucks
designed for order fulfillment in warehouses.
Operators can elevate along with the platform
to pick items directly from shelves, facilitating
efficient order picking processes.
3.2.2) Bulk Packaging:
• Description: Products are packaged in larger quantities or volumes, often in boxes or crates,
suitable for bulk storage. This method is efficient for handling large quantities of the same product.
• Evidence: Image of bulk packaging
2. Individual Packaging:
• Description: Items are individually wrapped or packed, often in smaller boxes or bags. This method
is common for smaller products, electronic components, or items requiring individual protection.
• Evidence: Image of individual packaging
3. Palletizing:
• Description: Products are arranged and secured on pallets for easy handling and transport with a
forklift or pallet jack. Palletizing is common for bulk shipments and simplifies loading and unloading
processes.
• Evidence: Image of palletized stock
4. Shrink-Wrapping:
• Description: Products or pallets are wrapped in a plastic shrink film for protection and stability
during transportation. Shrink-wrapping helps secure items together and prevents damage.
• Evidence: Image of shrink-wrapped pallet
5. Carbonisation:
• Description: Items are placed in specific cartons or boxes based on size, weight, or other
characteristics. This method aids in efficient storage and retrieval during the order picking process.
• Evidence: Image of carbonised stock
6. Bubble Wrap or Cushioning:
• Description: Fragile or delicate items are often wrapped in bubble wrap or provided with
cushioning material to protect.

3.2.4) Stock Rotation Policy:

Stock Rotation Policy

Objective: To ensure the timely and effective rotation of stock to minimize the risk of obsolete or
expired items and maintain product quality.

Methods of Stock Rotation:

First-In-First-Out (FIFO):
• Goods received first are used or shipped out first.
• Reason: This method is chosen to prevent product expiration and minimize the risk of obsolete
stock. It ensures that older stock is utilized before newer arrivals.

Last-In-First-Out (LIFO):
• The most recently received goods are used or shipped first.
• Reason: In some cases, LIFO may be preferred, especially for products with longer shelf life. It
helps in reducing holding costs and ensures that newer stock is used before older stock.

Batch or Lot Number Rotation:

• Products are rotated based on batch or lot numbers.
• Reason: Useful for products with specific manufacturing dates or production batches. It allows for
targeted recalls or quality control if needed.

Implementation:
• Stock rotation will be conducted during regular inventory checks.
• The inventory management system will be configured to prioritize stock based on the chosen
rotation method.
• Staff will be trained to follow the designated stock rotation procedures.
Review and Updates:
• The stock rotation policy will be reviewed annually to ensure alignment with changing business
needs.
• Updates may be made based on feedback from warehouse staff or improvements in industry best
practices.

3.3

3.3.1) Shrinkage and Loss Prevention Policy:

Shrinkage and Loss Prevention Policy

Objective: To proactively identify, minimize, and prevent shrinkage and losses in the distribution
center, ensuring the integrity of inventory and safeguarding assets.
Implementation Measures:
Security Measures (1.1):
• Security cameras are strategically placed to monitor key areas, including entrances, exits, and high-
risk zones.
• Access control systems restrict entry to authorized personnel only.

Employee Training (1.2):

• All employees undergo comprehensive training on the importance of shrinkage prevention and
loss control.
• Regular training sessions are conducted to update staff on best practices and emerging threats.

Inventory Audits (1.3):

• Regular and surprise inventory audits are conducted to ensure accuracy and identify any
discrepancies promptly.
• Cycle counting is implemented to continuously monitor inventory levels.

Shrinkage Investigation (1.4):

• A designated Shrinkage Investigator is responsible for conducting thorough investigations into
identified shrinkage incidents.
• Investigations include reviewing surveillance footage, interviewing relevant personnel, and
documenting findings.
Collaboration with Law Enforcement (1.5):
• Establish partnerships with local law enforcement agencies to facilitate quick response and
investigation in case of theft or other criminal activities.

Supplier Collaboration (1.6):

• Collaborate with suppliers to implement secure shipping and receiving procedures to prevent
shrinkage during transit.
• Verify supplier invoices and shipment contents to prevent billing discrepancies.

Technology Implementation (1.7):

• Employ technology solutions such as RFID tags, electronic article surveillance (EAS) systems, and
inventory management software to enhance security and monitoring capabilities.

Employee Accountability (1.8):

• Implement measures to hold employees accountable for their areas of responsibility, emphasizing
the importance of accuracy and integrity in inventory handling.

Review and Updates:

• The shrinkage and loss prevention policy will be reviewed annually to assess its effectiveness.
• Updates may be made based on feedback from investigations, evolving security threats, or
changes in industry best practices.
Explanation of Implemented Measures:
The implemented measures in this policy address various aspects of shrinkage and loss prevention.
Security measures, employee training, and inventory audits collectively contribute to a robust
prevention strategy. Collaborative efforts with suppliers, law enforcement, and the use of
technology further enhance the DC's ability to prevent and address shrinkage incidents. The policy
also emphasizes continuous improvement through regular reviews and updates, ensuring that the
prevention measures remain effective in the face of evolving challenges.

3.4.1) Stockroom Housekeeping Checklist

Document ID: HCK-001
Daily Tasks:
• Clear Aisles (1.1):
• Ensure all aisles are clear of obstructions, pallets, or loose items.
• Verify that emergency exits are unblocked and easily accessible.
• Sweeping and Mopping (1.2):
• Sweep and mop the stockroom floor to maintain cleanliness.
• Pay special attention to high-traffic areas and corners.
• Inspect Storage Areas (1.3):
• Check storage shelves for any damaged or loose components.
• Confirm that items are stored in designated locations.
Weekly Tasks:
• Dust and Wipe Shelving (2.1):
• Dust and wipe down shelves to prevent the buildup of debris.
• Pay attention to both high and low shelves.
• Inspect Lighting (2.2):
• Check lighting fixtures for proper functionality.
• Replace any burnt-out bulbs promptly.
• Organize and Label (2.3):
• Ensure products are properly organized and labeled.
• Update labels for any relocated items.
Monthly Tasks:
• Equipment Inspection (3.1):
• Inspect stock moving equipment (forklifts, pallet jacks) for any signs of wear or damage.
• Schedule maintenance or repairs as needed.
• Review Inventory Levels (3.2):
• Conduct a monthly review of inventory levels to identify any discrepancies.
• Investigate and resolve any issues promptly.
• Deep Cleaning (3.3):
• Undertake deep cleaning tasks, such as cleaning vents and hard-to-reach areas.
• Consider a professional cleaning service for comprehensive maintenance.
Quarterly Tasks:
• Safety Equipment Check (4.1):
• Inspect safety equipment, including fire extinguishers and first aid kits.
• Confirm that safety signage is visible and in good condition.
• Review Housekeeping Procedures (4.2):
• Review and update housekeeping procedures as needed.
• Provide refresher training for staff on housekeeping policies.
3.4.2) In a distribution center (DC), various types of waste can arise throughout different processes.
3.4.2) Here are common types of waste typically found in a DC:
Overproduction:
• Producing more goods than the immediate demand, leading to excess inventory and storage
challenges.
Excess Inventory:
• Holding more stock than necessary, tying up capital and storage space.
Waiting Time:
• Delays and idle time during processes, such as waiting for shipments or processing orders.
Transportation Waste:
• Unnecessary movement of goods within the DC, inefficient routes, or unnecessary transportation
costs.
Motion Waste:
• Unnecessary movements or actions by employees, leading to inefficiency.
Defective Products:
• Products with quality issues that result in rework, returns, or disposal.
Overprocessing:
• Performing more work than required, adding unnecessary steps in processes.
Unused Talent and Skills:
• Underutilization of employee skills or lack of opportunities for improvement.
Energy Waste:
• Inefficient use of energy in lighting, heating, cooling, or equipment.
Space Waste:
• Poorly organized storage leading to inefficient use of warehouse space.
Information Waste:
• Inaccurate or excessive documentation, redundant data entry, or lack of effective communication.
Packaging Waste:
• Excessive or non-environmentally friendly packaging materials.
Obsolete Inventory:
• Holding products that are outdated, expired, or no longer in demand.
Unnecessary Process Steps:
• Including steps in processes that do not add value to the final product.
• Underutilized Equipment:
• Equipment that is not fully utilized or not maintained properly.

3.4.3) Waste Disposal Policy and Procedure

Waste Disposal Policy

Objective: To ensure proper disposal of waste in compliance with environmental regulations,
promote sustainability, and contribute to a safe and clean working environment in the distribution
centre.
Procedure:
• Waste Segregation (1.1):
• Responsibility: All employees.
• Segregate waste at the source into categories such as general waste, recyclables, and hazardous
waste.
• Use clearly labelled bins for each waste category.

Identification of Hazardous Waste (1.2):

• Responsibility: Environmental Health and Safety (EHS) team.
• Regularly assess materials to identify hazardous waste.
• Clearly label and store hazardous waste in designated areas.
Recycling Programs (1.3):

• Responsibility: Sustainability Committee.

• Implement and promote recycling programs for materials such as paper, cardboard, plastics, and
metals.
• Educate employees on the proper disposal of recyclable items.

Waste Collection (1.4):

• Responsibility: Facilities Management Team.
• Regularly collect and transport waste to designated disposal areas.
• Coordinate with waste management service providers for scheduled pickups.

Disposal of Hazardous Waste (1.5):

• Responsibility: EHS team.
• Arrange for the safe disposal of hazardous waste through licensed and certified disposal services.
• Maintain accurate records of hazardous waste disposal.
• Compliance with Regulations (1.6):
• Responsibility: Compliance Officer.
• Stay informed about local, state, and federal regulations regarding waste disposal.
• Ensure the DC's waste disposal practices adhere to all relevant regulations.

Employee Training (1.7):

• Responsibility: Human Resources.
• Provide regular training sessions for employees on waste segregation, recycling practices, and the
importance of compliance with waste disposal policies.

Review and Updates:

• The waste disposal policy and procedure will be reviewed annually to ensure alignment with
changing regulations and business needs.
• Updates may be made based on feedback from waste management audits, emerging
environmental concerns, or changes in industry best practices.