1. Warehousing and Storage Principles Session 2 – Effective Stock Control Day 1 / PM

2. Aims for this session By the end of this session you should be able to: Explain the methods and conditions for storing goods Explain the purpose of an effective stock control system

3. 2:1 COSHH signs You have a worksheet with 9 signs What sort of signs are they? Can you identify what each means?

4. Palletising - safe stacking Fasten securely onto pallet with cling wrap.

5. Methods of storing goods All logistics and warehouse operations must ensure that all goods are monitored and maintained so that the goods arrive at the customer in perfect condition. You must know what stock is being stored and how it can be maintained.

6. Methods of storing goods Warehouses use different methods to store goods: Fixed Zoned Random / Chaotic

7. Case study An example of a company that uses the Chaotic Storage System is Amazon. "Modern warehouse with pallet rack storage system" by Axisadman - Own work. Licensed under CC BY-SA 3.0 via Wikimedia Commons

8. 2:2 Pros and cons of storage methods Different types of stock will require different storage techniques. You have each of three common types listed: Fixed Zoned Random/chaotic For each method briefly describe: How it operates What is good about this method (pro) What is bad about this method (con)

9. Storage methods for different stock For each of these types of stock, which storage method would be best and why? Hazardous Perishable Fragile High value Bonded

10. Stock control Any business that sells products needs to carry the right amount of stock at any given time.

11. Why is an effective stock control system important? Ensures that the correct levels of stock are maintained in the warehouse at all times Goods don’t go to waste Profits are maintained Customer satisfaction

12. Stock control terms Maximum stock level Re-order level Minimum stock level Max Min

13. Stock control system Electronic Manual Availability Checks

14. 2:3 Too much too little Effective stock control is essential ….. Why? On your worksheet write down FOUR things which might cause problems to the business if the stock levels were wrong. What problems might be caused by having too much stock? not having enough stock? What do you notice?

15. Too much stock The consequences of too much stock can be: A negative effect on the company’s profits. Cash flow is affected. A company is unable to order other products due to lack of funds. Products go to waste as their shelf life expires. Products can’t be sold because they are out of season/fashion. Company has to reduce stock to clear through lines.

16. Too little stock The consequences of too little stock can be: Internal and external customers can’t get the goods they want Lost sales revenue Lost customer goodwill Lost custom Lost profit

17. 2:4 MHE Reach truck Counterbalance Forklift Truck Trolley

18. Summary Palletising Methods of storing goods: o Fixed o Zoned o Random/chaotic Effective stock control Stock control systems: o Electronic o Availability checks o Manual Consequences of too much and too little stock

19. Warehousing and Storage Principles Session 2 – Effective Stock Control Day 1 / PM