Finished products sent to customers
The storekeeper is informed of the issues to be made means of sales advice note, issue order or similar document from the sales department giving details of the items, the consignee’s name and address and any special requirements about packing, labeling or method of transport.
Thereafter, the storekeeper selects packs and dispatches the goods in accordance with these instructions, and documents the transaction preparing advice note and a packing note.
Items for repair and sales of scrap
When articles are sent out for repair or reconditioning e.g. electric motor to be rewound, when scrap is dispatched to a customer, or when goods are returned to suppliers because of excess deliveries or rejections, the procedure followed is similar to that for finished products sent to customers.
Free issues to suppliers
In some industries and government departments, materials, parts, tools fixtures, patterns etc are supplied to contractor in connection with products which are being manufactured them. Issues of this kind are recorded in such a way that the total amount issued to any given supplier may easily be ascertained, and a record kept of the number of free issues which have returned to the supplier incorporated in the finished product or otherwise.
Whenever material is issued, the value has to be charged to the appropriate internal department or activity or to an outside customer. For this reason, all issue documents must show either the cost allocation code number for internal issues, or the customer‟s name for external transactions.
The appropriate cost or customer’s account can be debited with the value of the goods and the stock control credited at the same time.
Picking is the term used to describe the process of extracting goods from the bins and racks in a storehouse to collect all the items required to satisfy any particular issues note or other demand.
In a large storehouse especially a central storehouse serving a number of operating units, the process of selection is followed a further process of collecting together all items which are to be sent out at the same time to the same consignee.
In large storehouses there must be a routine for dispatch to the places served, including the following.
a) A routine system for the time of receipts of issues notes the selection of what is required and marshalling of the needs of each customer.
b) A timed scheduled of loading vehicles
c) A detailed transport plan for journey to users, timing and routing each vehicle and providing as far as practical for full loads outwards and return loads.
d) A regular system of checking to ensure that all items due for dispatch are loaded and that no unauthorized items are put on the vehicles.