Block D – Warehousing And Inventory

Trends

The use of bar coding and RFID systems is increasing. There is more automated ordering and inventory control, monitoring factors such as seasonal items, lost sales, recalls and manual orders. Automated inventory management systems suggest re-order points based on minimum and maximum criteria. Partspersons need to be aware of external factors that can influence their stock levels.

Electronic shipping and receiving has increased efficiency. The use of electronic methods for tracking shipments, arranging pick-ups, completing documents and receiving inventory is on the rise. More stringent regulations regarding shipments are in place. Growth in international shipping is resulting in increased documentation.

Related Components (including, but not limited to)

Shipping containers (international, domestic), pallets, labels, shelving, bin boxes, shipping documents, shipping supplies, strapping, stretch wrap, envelopes.

Tools and Equipment

See Appendix A.

Task 11 Handles parts and materials.

Context

Partspersons must ensure the effective placement of products in the warehouse for ease of retrieval, increased sales and quick service.

Required Knowledge

• K 1 types of warehouse layouts
• K 2 dimensions of parts and materials
• K 3 space requirements for warehouse equipment
• K 4 storage requirements for dangerous goods
• K 5 space requirements for potential future expansion
• K 6 sensitive products such as electronics, hazardous goods, paint and batteries
• K 7 disposal and storage requirements/regulations for sensitive products considering factors such as time, temperature and light
• K 8 first in/first out (FIFO) stock rotation
• K 9 stock placement systems such as alphanumeric and numeric
• K 10 regulations that apply to warehouse equipment
• K 11 WHMIS, MSDS, OH&S and PPE

Sub-task - D-11.01 Maintains storage design layout.

Key Competencies

• D-11.01.01 label locations according to company policy
• D-11.01.02 identify location and placement for new parts considering factors such as size, weight, environment, ease of access and volume of sales
• D-11.01.03 maintain designated space for incoming inventory considering time of delivery and size of shipment
• D-11.01.04 adjust placement of existing parts considering factors such as season and volume of sales
• D-11.01.05 maintain loading dock space for shipping and receiving
• D-11.01.06 maintain unobstructed pathways to prevent injuries and for ease of access
• D-11.01.07 utilize space to maximum potential such as stacking and using hooks rather than laying items flat

Sub-task - D-11.02 Handles sensitive products.

Key Competencies

• D-11.02.01 recognize sensitive products such as hazardous materials, paints, batteries, chemicals and electronics
• D-11.02.02 place and secure sensitive products in designated locations such as locked cabinet, fireproof cabinet, catch basin and temperature appropriate environment
• D-11.02.03 wear appropriate PPE according to product being handled
• D-11.02.04 use specialized tools and equipment for handling sensitive products such as battery transportation clamps, carts and pouring stations for paints
• D-11.02.05 package sensitive products for customer according to company policy and jurisdictional regulations

Sub-task - D-11.03. Rotates stock.

Key Competencies

• D-11.03.01 rotate inventory according to FIFO principle, date code, expiry date, product packaging, obsolescence and date received
• D-11.03.02 maintain quality of product such as turning paint can upside down, avoiding weight compression and preventing weathering

Sub-task D-11.04 Places inventory in designated location.

Key Competencies

• D-11.04.01 verify destination of part by cross referencing part information to location
• D-11.04.02 identify placement of overstock by determining if alternate locations have been identified or by finding a location
• D-11.04.03 recognize and correct errors in parts location
• D-11.04.04 place and display product as intended such as having part number facing outward

Task 12 Performs inventory control.

Context

Proper inventory control is important for partspersons to perform their job efficiently on a day to day basis.

Required Knowledge

• K 1 manufacturers’ return policies
• K 2 manufacturers’ and suppliers’ warranty and core requirements
• K 3 in-house return policies
• K 4 order point systems such as minimum/maximum
• K 5 local market trends
• K 6 volume discounts
• K 7 inventory unit of measure such as length and quantity
• K 8 inventory turnover
• K 9 seasonal trends
• K 10 methods of tracking lost sales such as computer and hand written
• K 11 types of lost sales such as stocking and non-stocking
• K 12 effect of lost sales and the importance of registering them
• K 13 warehouse layout
• K 14 company count method
• K 15 reasons for inventory count

Sub-task - D-12.01 Manages core and warranty inventory.

Key Competencies

• D-12.01.01 refuse returns if requirements are not met such as the original packaging not provided
• D-12.01.02 confirm what is covered by the warranty and how the warranty can be exercised at time of return
• D-12.01.03 perform visual inspection of core to assess if rebuildable
• D-12.01.04 temporarily store core and warranty returns in designated area
• D-12.01.05 prepare core and warranty returns such as draining oil in order to obtain full account credit
• D-12.01.06 prepare warranty documentation within time limits
• D-12.01.07 prepare and send core return and warranty documents to supplier
• D-12.01.08 track status of credit for core and warranty return
• D-12.01.09 inform customer at time of purchase of requirements for warranty to remain valid such as completing and sending in the warranty card to the manufacturer
• D-12.01.10 record information such as serial numbers at time of purchase or installation to track the part for warranty
• D-12.01.11 include core parts in inventory value

Sub-task - D-12.02 Handles recalls.

Key Competencies

• D-12.02.01 read notification to determine recall procedures such as whether parts fall within serial numbers or manufacturing dates
• D-12.02.02 retrieve parts and package for return or disposal according to notification instructions
• D-12.02.03 submit appropriate paper work to manufacturer
• D-12.02.04 adjust inventory accordingly

Sub-task - D-12.03 Maintains stock levels.

Key Competencies

• D-12.03.01 identify and report low stock, overstock and obsolete products
• D-12.03.02 adjust stock levels according to company policy based on seasonal requirements, phase-in and phase-out requirements and fast-moving stock
• D-12.03.03 implement measures to reduce overstock and obsolete products such as disposing of a product
• D-12.03.04 recognize and report discrepancies in stock between what is recorded and what is physically in stock through visual inspection, by reviewing stock reports or through periodic inventory checks
• D-12.03.05 report lost sales to be able to adjust stock levels to meet demand

Sub-task - D-12.04 Participates in periodic physical inventory count.

Key Competencies

• D-12.04.01 identify unmarked parts and assign a part number
• D-12.04.02 conduct physical count of inventory
• D-12.04.03 compare actual inventory to count sheets to identify variances
• D-12.04.04 conduct recount on variances
• D-12.04.05 advise appropriate personnel when inventory discrepancies are discovered

Task 13 Performs shipping and receiving duties.

Context

Partspersons must be able to perform shipping and receiving of product in a safe and efficient manner.

Required Knowledge

• K 1 receiving procedures
• K 2 handling procedures for hazardous goods
• K 3 types of shipping containers
• K 4 inspection procedures
• K 5 shipping terminology such as free/freight on board (FOB) origin or destination points, short shipments and back orders
• K 6 company policies regarding refusal/acceptance of shipments
• K 7 transportation companies’ policies regarding claims
• K 8 hazardous goods regulations such as TDG, OH&S, MSDS and WHMIS, and training
• K 9 awareness of customs regulations, brokers and charges
• K 10 company billing documents such as invoices and pick lists/tickets
• K 11 shipping terminology such as consignee, consignor, cash on delivery (COD), prepaid and collect
• K 12 packaging and labelling regulations
• K 13 shipping and handling procedures for dangerous goods
• K 14 types of shipping supplies such as metal, plastic, nylon and cardboard
• K 15 disposal of shipping supplies
• K 16 shipping documents such as bill of lading, commercial invoices and customs documents
• K 17 methods of transportation such as courier, post, air and ground
• K 18 freight company schedules and policies

Sub-task - D-13.01 Verifies estimated time of arrival (ETA).

Key Competencies

• D-13.01.01 monitor open POs including back orders and confirm ETA
• D-13.01.02 contact supplier to verify shipment has been made, obtain way bill numbers to track the shipment or to expedite the shipment
• D-13.01.03 inform appropriate party of status of shipment

Sub-task - D-13.02 Receives incoming shipment.

Key Competencies

• D-13.02.01 inspect for and record damage to packaging on the shipping documents
• D-13.02.02 refuse damaged product according to company policy
• D-13.02.03 unload and unpack shipment, and verify shipping information such as waybills and packing slips with product delivered
• D-13.02.04 record discrepancies on shipping documents
• D-13.02.05 enter received parts into inventory record system
• D-13.02.06 label part numbers to distinguish product
• D-13.02.07 place price on product according to location
• D-13.02.08 identify back orders on packing list for follow-up
• D-13.02.09 compare parts by visual inspection and identifying modifications for accuracy when received
• D-13.02.10 inspect and validate transport security seals
• D-13.02.11 prioritize the receipt of incoming shipments based on issues such as time constraints and space limitations

Sub-task - D-13.03. Resolves order discrepancies.

Key Competencies

• D-13.03.01 contact supplier for short shipments and arrange for missing product to be shipped pre-paid
• D-13.03.02 report order discrepancy to management
• D-13.03.03 obtain return goods/material authorization (RGA/RMA) number from supplier and attach to shipment to be returned

Sub-task - D-13.04. Prepares for shipment.

Key Competencies

• D-13.04.01 verify invoice or packing slip items for shipping
• D-13.04.02 package and label products for safe and damage-free transport according to jurisdictional regulations
• D-13.04.03 record weight and dimensions of products for calculations of freight charges to complete shipping documentation
• D-13.04.04 communicate with freight company to arrange pick-up and delivery
• D-13.04.05 load shipment