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Writer's pictureSedat Onat

General Improvements for Supply Chain (5/5)

Updated: Aug 30, 2023


Inventory management

Warehouse management processes start with the arrival of the following material on the warehouse area and are terminated by being dispatched to distribution points. Inventory management, on the other hand, is a continuous system and operates in an uninterrupted manner as long as the project continues to operate (Görçün, 2013, p.10)


The understanding of inventory management should be based not on goods inactivity, but on goods movement (Nebol, 2014 January). A warehouse system that adds value to the firm can not be built on stock keeping and stock storage.


Inventory management is seen as a function that does not add value to project progress as one of the logistics activities. But because the supply of supplies is a key point and the quality of service it provides is important for the progress of the project, the project has a great share in its total success.


The purpose of inventory management is to add value to the company for the sake of being;

  • Choosing the location of the warehouse considering the conditions such as the location of the project, climate conditions, transportation possibilities, and security problems,

  • To arrange the layout of the main warehouse, separation & consolidation warehouse and distribution warehouse (Armchair) according to usage characteristics and usage patterns of materials,

  • According to the results of the ABC Analysis (20/80 Pareto analysis), a random one or more stock counts on the following cycle basis (collective count leads to job loss) (Nebol, 2014 January)

- Group A, daily (Net stocks significant stocks),

- Group B, once a week,

- Group C, once a month and doubtful (net stocks of negligible stocks).


  • Transmission of timely and accurate information about various information such as current inventory, periodical movement information of materials,

  • Establishment of the necessary stock areas with optimum flexibility (enabling the stocking of other materials if they are not needed)

  • Giving the materials to the field according to their shelf life (It is the first one with a low lifespan. FEFO)

  • Work to dissolve inert materials for a long period of time (transfer to another project, return to supplier, scrap sales etc. if possible)

  • Detailed inspection of the defective materials coming from the suppliers or returned from the field without losing time, keeping the report and delivering to the supplier firm together with the related report immediately,

  • Taking necessary precautions considering the possibility of any kind of climate, theft or damage of the goods in the warehouses which are within the amount of money which is the same as the amount of money (Nebol, 2014 January)

  • Taking inventory management costs to the lowest possible level

- Achieving the lowest possible inventory management cost (Lean cost, number of employees, overheads, operational costs, etc.) using the existing volume most efficiently,

- Separation of moving and non-moving materials, and easy access and rapid transfer capability to moving materials (Regulation of access distance to materials according to usage rates, keeping welded materials together such as torch and torch together)

- Investigation of developments that will increase the efficiency of the inventory management (Equipment, rack system, RFID, BarCode, QR-Code, etc.)

  • etc. should be.


In addition, joint ventures should be provided for all the warehouses within the company (Projects and Country Center Pavilion). Close projects are able to see the material information of each other's stocks (shown as excess stock in the system), as well as to integrate best with the projects in warehouse areas in the Country Center Ambassador status.


The use of inventory areas in the main warehouse status only in the activities of mobilization, demobilization, and transfer of goods is an approach that does not add enough value to the company.


 

Debit

The debit is a problem that every warehouse management is suffering from. Unfortunately, this issue is noticed at the end of a project or problem.


The debit following is done via Excel spreadsheets. The procedure of this subject should be based on the common ideas of purchasing and logistics group employees working on the projects, the ideas of the project management and final quality control.


This issue can not be solved without the significant contribution and support of top management. Implementation of the established procedures should be ensured under all circumstances. It should be ensured that the various editions of the relevant department managers are not effective.


The cost of not being able to follow the debit is not a casualty, but a costly penalty that adds no value to the company.


 

QR-Code and BarCode application

One of the biggest problems in warehouse management is the inability to enter the locations of the input/output materials in a healthy way.


The materials subject to deposit consolidation, separation and raffia removal can be placed at different locations or at different locations in the same locality due to site distress. As input and output operations are multiplied, errors can be made due to operator or warehouse error/forgetfulness. These mistakes that can be noticed late can lead to job delays due to the assumption that there is a stock in the inventory due to the assumption that the material related to the chain is not stalled.


With QR-Code and BarCode applications, mistakes can be reduced the less.


In this system; a code label is affixed to each new item, and if the code label is present on the incoming item, this label is tried to be used.


At this point, both the workforce will be reduced the less and the mistakes will be prevented.


 

References

  • Görçün, Ö. F. (2013). Depo ve Envanter Yönetimi. Ö. F. Görçün içinde, Depo ve Envanter Yönetimi (s. 240). İstanbul: Beta Basım A.Ş.

  • Nebol, E. (2014 January). Tedarik Zinciri ve Lojistik Yönetimi (3. Baskı). İstanbul, Türkiye: Beta Basım A.Ş.


 

May 5, 2016 - Istanbul




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