Goods issue procedure, control and documentation

1. GOODS ISSUE PROCEDURE,
CONTROL AND DOCUMENTATION
Navindu Munidasa
MSc Logistics and Supply Chain (UK) (Reading); BSc Operations and Logistics
Management (UK); Dip in Computer Hardware and Networking ; Certificate in Motor
Mechanism (CGTTI); Certificate in Workshop Practices (CGTTI)

2. INTRODUCTION
One way of judging efficiency of a supply organization is by
the standard of service provided by the Storehouse to the
users. Service can be judged in several ways;
a. By the speed with which issues are made against
demands.
a. Manner the storehouse is organized
b. The stores layout
c. Arrangement of stocks according to popularity
d. The methods of handling materials and moving
them
e. The efficiency of the storekeeper and the stores
staff
b. By the percentage of items not executed owing to stock
outs
a. The efficiency of stock control
b. Recoupment
c. Purchasing
d. Receiving
e. Documentation
f. Preservation in the store

3. AUTHORIZATION
OF ISSUES
• The storekeeper should check the requisition /
indent has been duly authorized by an officer
of the user department nominated for the
purpose. Specimen signature of the authorized
officer and their designations should be
available with the store staff to verify the
authenticity and genuineness of the requisition.
• In the case of a storehouse located within the
organization itself, for example in a production
complex, construction project etc., stores can
be with drawn on a signed document, a verbal
instruction or a routine arrangement, as
authorized by Management.

4. IDENTIFICATION OF REQUIREMENTS

5. METHODS OF ORDER PICKING
1. Discrete Order Picking
The most common type of order picking because it is basic and simple to understand. When employing a
discrete order picking methodology, one order-picker picks one order, one line at a time. Additionally, there is
only one order scheduling window during a shift. Therefore, orders are not scheduled and may be picked at
any time on a particular day.
The advantages of using this method of order picking are: simplicity, ideal for paper based picking, provides
fast response time for order fulfillment and can easily track order picker accuracy. However, this is the least
efficient methodology as it requires a significant amount of travel time compared to other methods. (This is
where a cart with built in power can help)
2. Zone Picking
Order pickers are assigned a specific and physically defined zone in the pick area. The picker assigned to each
zone is responsible for picking all of the SKUs located in the zone for each order. In the event that an order
requires SKUs that are located in multiple zones, the order is filled after it passes through each zone.
This is also referred to as the "pick and pass" methodology. In zone picking there is only one scheduling
period per shift. This means there is a cutoff point for orders to be queued into the order picking process and
any order received after that cutoff point will get fulfilled during the next shift.

6. 3. Batch Picking
Batch picking is when one picker picks a group, or batch, of orders at the same time, one SKU at a time.
This is advantageous when there are multiple orders with the same SKU. When that occurs, the order picker
only needs to travel to the pick location for that specific SKU once, in order to fill the multiple orders.
The main advantage for choosing this method is reduced travel time, which increases productivity. Batch
picking is often used when the typical order profile has only a few SKUs (under four) and the SKUs physical
dimensions are relatively small. Just as in zone picking, batch picking requires only one order scheduling window
per picking shift.
4. Cluster Picking
Cluster picking is a methodology of picking into multiple order containers at one time. The containers could
either be either totes containing order batches, discrete order shippers, or discrete order totes. There are two
main piece picking systems that benefit from the use of cluster picking:
Pick to cart operations, in which, a cart would be loaded with multiple totes or shippers and the picker will make
one pass through the pick zone and sort to the pick containers, thereby avoiding unproductive travel.
Vertical lift modules (VLM) or carousel operations utilizing the independent zone picking technique, the picker
would setup the pick container batch, this would initiate the mechanized pick modules, and the items would be
sorted to the proper pick container. This technique is used to optimize the VLM & carousel pods by limiting the
number of machine cycles.

7. 5. Wave Picking
Wave picking is very similar to discrete picking in that one picker picks one order, one SKU at a time. The main
difference is the scheduling window. In discrete picking, there is not a scheduling window whereas in wave picking
there is. Orders may be scheduled to be picked at specific times of the day, which is usually done to coordinate
and maximize the picking and shipping operations.
6. Zone-Batch Picking
This is a combination of methods in that pickers are assigned a zone, just like traditional zone picking, however
they are also directed to batch pick within their zone. Since both zone picking and batch picking have a
scheduling window, then zone-batch picking does too.
7. Zone-Wave Picking
Zone-Wave Picking is a combination of methods in that pickers are assigned a zone and each picker within their
zone picks all of the SKUs for all orders that are stocked in their zone, one order at a time with one scheduling
window per shift.
8. Zone-Batch-Wave Picking
The most complex combination of all of the order picking methodologies. Each picker is assigned a zone and
picks all SKUs for orders stocked in the assigned zone. Additionally, the picker picks more than one SKU at a time
and there are multiple scheduling windows per shift.

8. TIMING OF
ISSUES
• In order to ensure a smooth flow of work
and execution of demands without delay,
it is advisable to phase the receipt of
requisitions to be received by certain
dates and also the issues during
prearranged times.
• As a general rule, the storekeeper should
try to meet the convenience of users, and
restricted times of issue should be
applied only where it is necessary to
avoid uneconomical peak loads of work in
the storehouse, and to prevent
unnecessary waiting time on the part of
those sent to collect materials.

9. METHODS OF ISSUING STORES
Issue on request
Immediate Issues on
presentation of an issue note
by hand.
Issue made after the receipt of
an issue note by hand or post.
Immediate Issues on verbal
requests only.
Scheduled issues to
production
• Production staff collecting
them from the storehouse
• Delivered by the storehouse
staff to a point in the
production line at which the
process of manufacture is to
begin
• Transferred into open access
store within the production
shops
Imprest Issues
•Certain types of materials in
given quantities is approved
to be held either in a sub-
store or on a production line
•At the end of a given period
the user concerned prepares a
list of the materials he has
consumed during that time,
and presents an appropriate
issue document at the main
storehouse
Loan Issues
•Required in a maintenance
department for short periods
of use at frequent intervals
Allocated Issues
•Materials may be received on
a programme delivery basis
and held for use only by the
production line for which they
have been purchased
Free Issue to Suppliers
•In certain private organizations
and in Government
Departments, material parts,
tools, etc. are issued to
contractors in connection with
products which are being
manufactured by them.

10. MATERIAL ISSUING
Issue of CAPEX
Issue of Direct
Material
Issue of
Components
Issue of Indirect
material
Issues to
Contractors
Allocated Issues

11. DOCUMENTING
ISSUES
• Two alternative systems are available for making
issues :
1. Pre-posting
Under the pre-posting method before issues are
made the number of the requisition, quantity issued,
etc. are entered in the stock control records etc. and
it is sent to the storehouse for issue of the items.
When stock levels are gone down, supply officer or
stock controller can allocate or ration stock on a
priority basis and thus exercise strict control over the
available stock.
2. Post-posting
Under post-posting it is possible for issue to be made
without being duly posted in stock records.

12. MONITORING OF ISSUE FUNCTIONS
• The Stores Manager should clearly lay down the procedures (with appropriate flow charts) to
be followed by the Issuing officers and storekeepers checking the issuing of stores against
authorized requisitions / demands. In addition he should give particular attention to following
matters.
1. Regular checks of quantities requisitioned to ensure that the quantities demanded are not
excessive and are reasonable.
2. Issues are correctly measured, weighed, etc.
3. Issues are properly posted in the relevant stores records and the stock balance up-dated.
4. Where issues have to be dispatched by rail, documentation and booking of wagons where
necessary should be done well in time. There should be effective liaison with appropriate railway
officials.
5. Packing cases/containers are sound, strong enough and are securely fastened with hoop iron to
withstand rough handling and transport at various stages of transit from the issuing ware houses
to the premises. of the outstation consignees. This is essential to minimize damages, pilferage, etc.

13. THANK YOU