Certificate II

in
Retail
Learning and Assessment Material

SIRXINV001A
PERFORM STOCK CONTROL PROCEDURES

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Contents
What Does Receival Involve? .4
What about stock integrity? .4
What documentation is involved with receiving stock?...5
Delivery Note .5
Invoice.5
Manifest .6
Consignment note 6
Internal packing note 6
Electronic data systems ..7
The receipts area .7
Physical Checking 8
What do I do if deliveries are incorrect or damaged? .9
Do some goods need to be handled carefully?9
Putting goods away 10
Where are the new lines put? ..10
Stock location ..10
What is meant by stock rotation? 11
Stocktaking ..11
Periodic 11
Ongoing12
Physical stock takes ..12
One person stock takes 13
Two person 13
Counting system 13
How do you organise a stock take?.13
Things to consider when planning or organising a stock take 14
What are stock discrepancies?.14
How do you know there is a stock discrepancy?...15
Types of record keeping discrepancies ..15
The impact of discrepancies or variances on operations .16
How do you deal with discrepancies? .16
Workplace procedures for reporting major discrepancies16

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Why does shrinkage matter? 17

How do you adjust inventory records? 17
What is an inventory report? .17
How do you maintain stock levels? .18
How do you re-order stock?..19
Communicating with purchasing and management about re-ordering .23
What documentation is required for re-ordering?..23
Why is correct packing important? ..23
Where and how are packed stock items placed for despatch? ..24
How should Despatch documentation be completed and used? ..25
What must be done when complaints are received? 25
TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS .26
Assessment task 27
ASSESSMENT MODE A - Oral questioning .28
ASSESSMENT MODE B - Skills observation checklist29
Participant survey of materials .33
Suggested Answers ..34

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SIRXINV001A

PERFORM STOCK CONTROL

PROCEDURES

Element of competency:
1. Receive and process incoming goods
2. Rotate stock

What Does Receival Involve?

Arrival

Unloading

Unpacking

Checking

Entry in System

Goods may arrive at the warehouse in many ways. They may arrive on trains,
aircraft or trucks, and they may be packed in containers, cartons or simply on
pallets. Road trucks are the most common form of transport for the distribution
of goods. Some road trucks are enclosed containers and are loaded/unloaded
from the rear. Other types are loaded/unloaded from the side.

What about stock integrity?

At receival it is important to make sure the quality and quantity of goods is
what is expected. Goods must be received properly and put away in the
correct place. If you dont get it right here the whole supply chain is incorrect.
It is also very important that the integrity of stock is also protected.
The warehouse where you work is a critical link of goods exchange. Goods
exchange involves many different groups:

Suppliers

Purchasers

Carriers

Distribution Centres

All these groups work together in a system to guarantee the customer gets
what they want, when they want it and at the right cost. Receival at a
warehouse must ensure that goods flow through the warehouse as smoothly
as possible, not making mistakes and not causing delays.

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What documentation is involved with receiving stock?

To make sure the flow of goods through a warehouse is smooth and effective,
we need a method of recording and tracking goods between all groups
involved in the exchange process. We need a way to show that suppliers,
purchasers, carriers and distribution centres have all played their part
correctly. This is necessary to show exactly what goods have been given to
who, and as evidence of work and receipt of goods on which payments will be
based. Individual warehouses will have different systems for recording the
movement and storage of goods. These systems can be manual or
computerised. Making sure the system works involves many different types of
documentation.

Delivery Note
A delivery note is usually supplied with the goods at the time of delivery. It will
state what the supplier has actually delivered to the store. This is probably the
most important receipt document of all. Goods delivered are checked against
the delivery note to confirm the delivery is correct.

Invoice
Invoices are used for the same purpose as the delivery document. However,
invoices are used in situations where the distribution center actually
purchases the goods rather than just distributing them for somebody else.
Goods received are checked against the amount and description stated on
the invoice. The invoice may contain:

A single item or

Many items.

Invoices are normally:

Sent with the load of goods.

Invoices are a very important document as they are

Used to bill the receiving company.

Great care must be taken to make sure that goods received are accurately
checked against the invoice.

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Manifest
Some warehouses are Care Takers of goods, (that is they do not actually
purchase the goods). These warehouses receive goods using a document
called a manifest. The manifest is similar to an invoice. They are used mostly
when importing or exporting goods. The information on a manifest is used to
check the delivery and make sure all the goods consigned have arrived. A
Delivery Note, Invoice or Manifest are used at different times to check that the
goods delivered are the right goods and the right quantity.

Consignment note
A consignment note is used when the delivery is contracted out to a private
carrier. They show what is to be receipted and are usually issued by the
carrier of the delivery, as a record of what has actually been sent.
In some cases, the goods on a consignment note may be checked with other
delivery documents (invoice, manifest etc). A consignment note usually does
not give a product description, but will give information like how many boxes,
pallets, bags, bales etc. The important sections are:

Pallet control information.

Number of items.

Description.

Receiver.

Signature of receiver.

If you are not sure why the points listed above are important to receiving
goods, please discuss consignment notes with your supervisor.

Internal packing note

The internal packing note is used to carry out a more detailed check of the
stock delivered, once the outer containers, such as cartons, drums, boxes and
pallets have been broken down and the stock is ready for inspection and then
storage. The packing note lists what is actually within each unit delivered. It
should give specific information regarding quantity, type, size, specifications,
colours etc.

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Electronic data systems

Many warehouses today use special computer systems in the receival of
goods. This is called an automated system. Automated systems cut down on
paper work and are very quick when it comes to checking and transfer
information. The main parts of an automated system are:

Consignment notes sent through a computer as proof of delivery.

Barcodes used on consignment notes.
Bar-coded delivery labels.
Speedy pricing.

Sometimes with automated receival systems, computers can be used to

provide extra information. Daily dispatch details can be looked at for numbers
of:

Deliveries

Amounts

Weights

Money charged

The receipts area

The receipts area is a special area within the warehouse for the receival of
goods. It is a separate area away from all existing stock. Sometimes this area
is called the quality control area or QC. This is because all incoming
deliveries must be carefully checked before the goods are mixed with stock on
hand.
The receival area is usually located close to loading and unloading docks.
This helps to save handling time and allows forklifts, trolleys etc, to be used.
The receival area should be large enough to allow goods to be carefully
checked.
When doing a first check, look for pallets with product overhang or wet and
damaged stock. Some warehouses only accept single item pallets. If this is
the case in the warehouse where you work, pallets with mixed items will also
need to be labelled Return. If mixed pallets are accepted, then they should be
referred to the receival supervisor.
It is also important to check any security or quality control devices. In many
warehouses, loads or containers that are delivered must be sealed. This may
be done using some type of plastic tag or even a key and lock system. These
load security procedures are used to prevent consignments from being
tampered with during transportation.

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When checking a load, if you notice that the seal or lock is broken, you should
immediately notify your work supervisor. Usually the carrier is asked to verify
the damaged seal and the sender or client is notified before the stock is
checked. In some situations it may be warehouse policy to actually collect
photographic evidence of damaged deliveries.

Physical Checking
After goods are unloaded, physical checking is carried out to make sure the
goods delivered are what is described on:

Manifests

Consignment notes

Invoices.

Deliveries are checked against delivery documentation to make sure:

The total count is correct.

Individual product count is correct

Any damage is recorded and reported immediately

Goods may be checked by:

Counting

Weighing

Measuring.

Quality may be checked by:

Colour

Size/Weight

Specification

Packaging.

Best by dates.

Once the goods have been checked, they are entered into the system and
recorded as goods in stock.

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What do I do if deliveries are incorrect or damaged?

A damage or shortage report must be completed when:

Goods arrive damaged

A shortage occurs in delivery

Goods fail to arrive at the stipulated time.

There are also correct procedures for cases of wrong and surplus
delivery.

Do some goods need to be handled carefully?

Sometimes cartons come with special signs or instructions on how they
should be handled. Care must be taken because these instructions relate to
the goods inside the cartons. Failure to follow carton instructions may result in
damage to the goods. (In the case of dangerous goods, workers may be
injured if these instructions are not followed).
Shrink/stretch film wrapping is commonly used to secure loads. It may be
used at times when the load will not tolerate tight or heavy strapping, or when
loads include unusual shapes. Shrink-wrap can also be used for pallets that
contain a lot of small items. It may not be suitable for loads that are heavy, or
those, which require heavy holding power.
Clear and black wrap is available. Black to conceal the contents from the
public eye. E.g. TV sets.
In some circumstances you may be required to remove the shrink-wrap before
the goods are put away. However this is unlikely in cases where loads are
unstable.

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Putting goods away

Once the goods have been checked and accepted as scheduled, they are
formally entered onto the stock on hand record system. This system is used
to produce a Put away label. Manual labels can also be used to trap the
inventory but do not produce a put away label.
Not all computer systems can provide information such as locations of goods.
If your warehouse does not use locations for slotting of goods, ask your
supervisor to explain how do you know where products are?
Of the many different lines in a warehouse, some will move through the
system quicker than others. Generally, goods are classified as fast moving,
medium moving, slow moving. What and how many people buy in the
supermarkets and shops will determine how fast any goods move through the
warehouse system. Most times it is necessary to keep a reserve supply of fast
moving goods. Reserve items are usually stored in a distinct location and are
often called piggy backs, which means that many pallets are stacked one on
top of each other. Reserve items are stored on the high slots on most
occasions.

Where are the new lines put?

New lines into the warehouse can be identified by a new stock identification
label. This label is the same as a put away, but it does not have a location
destination.

Stock location
All types of goods ranging in various shapes/sizes are stored in warehouses.
As mentioned previously in this section, some goods move faster through the
system than others. Some warehouses will also store flammable and
dangerous goods. Here are some questions to be answered before storing
stock:

What type of stock?

How fast does it move?

Is it dangerous?

Is it large or small?

Is it easy to stack?

Does it require cold storage?

Sometimes in more advanced warehouse systems, the computer system

automatically slots new goods into storage based on the criteria above.

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What is meant by stock rotation?

Most warehouses have a plan to make sure that old stock is shifted first. In
your warehouse job, it is important for you to keep in mind that many products
(especially consumables) cannot be used after a certain time. With foodstuffs,
this will be the best by date. Some stock moves faster than other stock in a
warehouse.
There are terms used to identify stock rotation systems in a warehouse.
These terms are:
First In First Out (FIFO)

This means stock that comes in first is despatched first.

First In Last Out (FILO)

Under this method the stock received first is the last to go. Stock
rotation is important when putting goods away. In some instances
pallets may need to be rearranged before putting fresh stock away. You
may have to shift pallets from reserve slots to pick slots or you may
have to move stock forward that already exists in pick slots.

Stocktaking
Stocktaking is the process of physically checking the quantities and condition
of goods held in the warehouse. There are two main types of stock takes:

Ongoing

Periodic (monthly, quarterly, annual).

Periodic
Periodic stocktaking involves counting all of your stock at the end of a given
period, usually the end of the financial year. When doing an annual stock take,
the warehouse might need to be closed for a certain period of time so that all
stock can be checked. If this happens, the production department will have to
be informed well in advance so that they can stock up on supplies before the
stock take.

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Ongoing
Nowadays, with all the computer systems operating in warehouses, a stock
take can be carried out at any time with little interruption to productivity. Some
companies do a monthly stock take, using their computer to show the amount
of stock that should be held, while the warehouse staff physically checks the
stock against the computers figures. They may even decide to do a weekly
stock take on high turnover items. Other companies do twice yearly stock
takes which are done manually, using the computer to assist the count while
warehouse personnel physically count each item on the stock take. The
physical count can be checked against the figures on the computer system.

Physical stock takes

Periodically, it is important to physically check inventory for three reasons:

To determine whether inventory records are accurate

To confirm physical quantities so they can be valued for financial

Accounting purposes

To determine if effective control is being maintained.

Stocktaking can be a laborious and time consuming activity, but it can be

made more efficient if you:

Count items of highest value and importance approximately every three

months, and items of low value and importance about every six months

Count high value and important inventory items by units, and low value
inventory in bulk by containers or weight

Count inventory when it has reached re-order levels as quantities will

be low and less counting will be required

Use experienced and responsible staff on high value and important

items and less experienced staff on other items.

When doing a physical stock take, your method of counting will depend
on the number of workers you have available.

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One person stock takes

One person counts the goods by description and quantity from start to finish
by:

Using a blank piece of paper to record all details

Double-checking the figures by repeating the stock take in reverse

order without using the first stock take figures as a guide

Comparing the figures on both sheets and double checking any

differences

Comparing findings with the computer or paper based records

Recording any adjustments or transfers.

Two person
This method is the same as above except one person counts while the other
writes. When counting the second time, you should swap roles so that the
writer is now counting and the counter is now writing. Compare this count with
the previous count and double check any differences.

Counting system
The computer system will be used to show the quantity of stock that should be
held. However, this should only be used as a guide because all stock will have
to be checked physically with stock cards for all items. In some warehouses
the stock is stored so that it can be counted with ease in packs of a set
quantity, in boxes with set numbers in it, or on pallets of set amounts. Real
time information from computers is critical for accurate stocktaking and
reporting.

How do you organise a stock take?

Organising a stock take is important not only to your warehouse and its staff,
but also to your customers. Customers need to be notified well in advance if
there is going to be a disruption to supply. As discussed earlier, the type of
stock take you do depends on the policy of your company and the resources
available. Company policy will dictate whether you have an annual stock take
where the warehouse shuts down for a period of time, or ongoing cyclic stock
takes, with less interruptions but a little less accuracy.

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Things to consider when planning or organising a

stock take
When planning a stock take you need to:

Have sufficient resources to conduct the stock take

Draw up a stock take program and get everyone, including the finance
department and auditors, to agree to it

Prepare stocktaking sheets, cards or other documents in advance

Instruct everyone involved about his or her duties

Inform customers so that they can stock up during the stock take time.

What are stock discrepancies?

A discrepancy occurs when there is either more or less stock than the amount
recorded. This might be because there is an incorrect quantity of stock or
because the records are incorrect. When there is more stock than recorded
there is a stock surplus. When there is less stock than recorded there is a
stock deficiency. Deficiencies are often referred to as shrinkage.
Discrepancies can be caused by:

Data entry errors

Under or over supply

Pick errors

Theft

Waste by:
- Damage
- Incorrect storage
- Contamination
- Expired use-by dates

Buyers errors

Coding errors

Changes in the number of items in a pack. For example from packs of

12 to packs of 10

Stock returned from customers for replacement

Incorrect checking

Work in progress

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Incorrect allocations.

How do you know there is a stock discrepancy?

One way to identify stock discrepancies is to compare stock take results with
inventory. Sometimes you do not need to wait for a stock take to identify
discrepancies. For example, shrinkage due to damage can be recorded as
soon as the damage occurs by filling out a form or immediately updating the
inventory.
Companies involved in quality assurance systems must record all damage
and disposal details on a non-conformance report. No inventory control
system is perfect and some discrepancies between physical quantities and
inventory records can be expected. Where this happens, the inventory
records should be altered to show actual physical quantities.
However, it is a good idea to re-check the count first before altering records.
Major discrepancies or a high incidence of minor discrepancies could be an
indication of breakdown in control and should be investigated.
Many businesses take careful steps to guard against theft, but inventory
shortages can arise for a variety of other reasons. Frequently, shortages are
because of inadequate receiving, dispatch-in, and issuing procedures and
controls.

Types of record keeping discrepancies

Record keeping discrepancies might include:

Inaccurate data entries

Keyboard mistakes

Human error

Inaccurate documentation:
- Receiving or packaging slips
- Despatch documents.

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The impact of discrepancies or variances on

operations
Discrepancies or variances can cause:

A need for more stock takes or cyclical counts

Inaccurate records for:

- Pick slips
- Inventory lists
- Customer inquiries about stock availability
- Re-ordering procedures.

How do you deal with discrepancies?

If the discrepancy is large, it is worth investigating:

Examine stock cards, computer records and figures to check for

calculation errors

Verify the correct quantity of the discrepancy

Check basic documents such as receipts, issues, transfers, delivery

documents, return to store notes, etc

Examine previous stock take results to see if there were any

discrepancies

Make inquiries into other departments in case there has been an issue
or return to the warehouse without documentation, outside normal
working hours.

Workplace procedures for reporting major

discrepancies
Your workplace will have its own procedures for reporting major
discrepancies. Some of the things you will need to ask yourself when
reporting major discrepancies are:

Should the report be made verbally or in writing?

What documentation should be used? For example damage reports,

stock adjustments, stock transfer, quarantine reports etc.

What personnel or departments should receive the report?

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Why does shrinkage matter?

Shrinkage can have an effect on profit. For example if a pallet load of goods is
damaged because of bad housekeeping, the cost of that pallet of goods will
come straight out of the company profit and will also have an impact on
insurance premiums.

How do you adjust inventory records?

You may find that after the stock take your inventory records do not match the
amount of stock that is held. If so you will have to adjust your records. You can
do this by:

Manually adjusting it on the cards

Producing an audit report

Reviewing all journal adjustments

Adjusting the amounts on the computer.

Stock can also be reviewed on a monthly basis and the marketing department
will write down the value of the stock, for example clothing garments that
might have gone out of fashion. The stock will then be sold at a sale price.
Other stock can be looked at during the year, and written down and off-loaded
at sales. These will all cause the inventory report to be adjusted.

What is an inventory report?

An inventory report tells you what stock is available and what stock is
required. This can be achieved in different ways:

With an on-line computer display

By numbers on bin cards

By running a range of reports on the computer.

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How do you maintain stock levels?

Stock levels need to be maintained so that you can fill orders with a turn
around time that satisfies customers. On the other hand, you do not want to
hold excess stock unnecessarily. Some of the disadvantages of holding
excess stock are:

Having money tied up in inventory

Operating expenses, rent, rates, repairs, heating, cooling, lighting, etc

Valuable space taken up by extra storage

Chance of stock becoming obsolete or expiring

Deterioration of stock

Insurance cost of stock

Stock checking

Recording of stock.

However, there are also some advantages to holding large quantities of stock:

You may receive discounts from suppliers for ordering large quantities

You have a buffer for when delivery cannot be exactly matched with
daily usage

You reduce the risk of being unable to fill orders if there is a breakdown
or interruption to supply

You can cash in on fluctuations in the price of the commodity it can

be an advantage to have a large quantity of stock if the price is about
to rise

Some items appreciate in value during their time in storage, (for

example wines and spirits).

As you can see, it is difficult to run a warehouse on a very tight basis and still
take into account all of these needs. As the warehouse supervisor you will
sometimes have to make decisions about required stock levels.

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When deciding what level of which stock lines should be kept, you will need to
balance the advantages of holding large quantities of stock against the
disadvantages. The level at which you decide stock needs to be replenished
will depend on a number of factors. Besides the advantages and
disadvantages discussed previously, you will also need to consider the points
below:

Minimum re-order quantities or standard units of issue (pallet load,

items per box, etc)

History of demand for a product

Legislative demand to hold stock (e.g. spare parts) even if there is little
or no customer demand for the product

Seasonal demand for a product

Frequency of delivery or availability of supplies, especially from

overseas (fluctuations in the money market)

Taking care not to carry too much stock in high value items

Taking care not to carry too much stock in items that might become
obsolete (computer chips or some machine parts) or if the item has an
expiry date.

Many companies have a computer system built into their stock control that is
activated when stock needs to be purchased. This can be done on a weekly
or monthly basis, or at any time that suits the organisation.
Other companies have a system that will requisition stock on a day-to-day
basis and again this will automatically raise the orders for the purchases.

How do you re-order stock?

To run an efficient and profitable warehouse, you should be aware of all the
re-ordering systems used by your company. There are two main types of reordering systems:

Push systems

Pull systems.

Push systems include fixed quantity and fixed period re-ordering. They have
been in use for a very long time.
Pull systems include Just in Time (JIT) and KANBAN or ticket triggering. JIT
and KANBAN systems are more recent and come from quality philosophies.
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They have been introduced in many places to try to increase efficiency by

reducing the amount of warehouse stock.

Just in time
Just in Time (JIT) comes out of a quality philosophy. Its aim is to have the right
goods in the right place at the right time. This system increases efficiency and
reduces waste by saving on unnecessary storage. It takes the view that held
stores act as a buffer in times of variation, so that if you cut out this variation
you will not need the buffer of extra goods in storage. This system will not
work if you have a high level of defective or reject products.
The aim of JIT is to keep inventory small. This should save the company
money through not having money tied up in stock, the associated costs of
insurance, and the risk of stock going out of date. It also reduces the need for
large storage areas in warehouses. However, JIT is not very practical if the
stock is coming from overseas and time frames cannot be guaranteed. In a
JIT system the warehouse aims to have stock come in one door and out the
other, with very little being held in storage.
Some features of a JIT system include:

It takes about 5 to 7 years to implement

It minimises paperwork because you usually order standard quantities

in standard containers

It requires more frequent, smaller deliveries than traditional systems

It is helpful if the suppliers are located close to the distribution centre,

because of the frequent small deliveries however, this is not
essential.

Co-operation from suppliers is a key step to implementing a JIT system.

Reliable supplies are the key to the whole system. JIT usually requires you to
develop long-term relationships with fewer suppliers rather than short-term
relationships with many suppliers.
Even if your company does not operate a JIT system, customers may still
want you to deliver to them on a JIT basis. For example in retail, high rental
costs and strong competition means that shops have smaller store rooms,
and use more space for customer service. The days of supermarkets with
large
storerooms out the back are gone. This means that retailers need to receive
goods on a JIT basis, and put them straight onto the shelves instead of storing
them, as they once would have. These demands from retailers put more
pressure on warehouses to understand JIT and act as JIT suppliers whether
they intend to adopt it for their operations or not.

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Kanban
KANBAN is a pull system that uses cards or tickets to let the supplier know
that more stock is needed. KANBAN is a technique that is used together with
JIT. You can have JIT without KANBAN, but you cannot have KANBAN
without JIT.
With the KANBAN system, the customer sets the date of delivery. The work
plan works backwards from this date to set the dates for shipping, final
inspections, completion, assembly and start of the project. Each part of the
project is pulled by the customers delivery date.
This means that it is not until the customer requests a product that it starts
moving through the warehouse.

Fixed quantity re-ordering

This is the most conventional way of identifying when stock needs to be reordered. It relies on defining the following stock levels for every product kept
by the warehouse:

Minimum stock level the smallest amount in the warehouse to serve

the needs of the customer

Ordering stock level the level at which an order is placed. This level is
held to supply customers while waiting for the delivery of new stock

Hastening stock level the level at which you need to hurry along your
supplier

Maximum stock level this is the maximum amount of stock held to

meet your customers needs.

You should not hold more than maximum stock level because if your
customers do not order it, it can:

Go out of date

Deteriorate

Become obsolete

Tie up company money with stock that is just sitting on the shelves.

Quantities set for each of the levels needs to be reviewed regularly. Otherwise
the levels go out of date and the system becomes ineffective. Different items
will reach ordering levels at different times. This means that orders are placed
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for one or a few items at a time and the period between orders can be quite
irregular.

Fixed period re-ordering

The fixed period re-ordering method is a less conventional way of identifying
when stock needs to be re-ordered. This system involves ordering set
amounts of goods to be delivered at set periods of time. For example, you
might order 10 cartons of product X to be delivered on the first of every
month. For this system to work you must be able to estimate how much
product you need over a pre-determined period of time. This estimate is
usually based on past patterns of use. The advantages of this system of reordering are:

Stock is delivered automatically without you having to verify what the

current or proposed stock levels are

You can pay as you go

You dont have to store excess stock

You can often get a good price for the product.

The main disadvantages of this system are:

You may run into stock shortage or overstocking

Stock may become out of date, obsolete or deteriorated.

The fixed period re-ordering system is dependent to the type of industry and
product. It is commonly used in blanket orders placed on suppliers and is
regularly used for incidental supplies such as stationary, which do not affect
your customer.
All ordering systems are subject to factors such as:

Perishable or non-perishable items

Seasonal fluctuations

Industrial stability

Technological advances

Changing customer attitudes

Rate of inflation and likely price increases

Availability of discounts for large orders

Restrictions on supply

Lead times.

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Communicating with purchasing and management

about re-ordering
The amount of capital tied up in inventory will always have to be carefully
balanced. As the warehouse supervisor you should work very closely with the
purchasing department at all times.
Company policy will dictate the amount of inventory that should be held to
maintain supply to the customer while not overstocking.
Purchasing will be working with senior management to decide on the amount
of stock needed to keep the customers supplied. During abnormal times you
will have to provide purchasing with up to date figures on the quantity of stock
held and whether more stock needs to be brought in. The importance of your
accuracy in running the warehouse is crucial.

What documentation is required for re-ordering?

It is the warehouse supervisors job to regularly check the quantity of stock
held and to assist the purchasing department with re-ordering. The warehouse
supervisor will have to raise a requisition which will show what stock is
required, and its colour, size quantity and so on.
The requisition will then go to the warehouse manager who will check that
everything is correct, and forward it on to the purchasing department. The
purchasing department will ask the supplier if the stock is available and when
it can be delivered. When all of these issues are settled, they will then raise a
purchase order and number before sending it off to the supplier. Other
companies may have a different re-ordering system from the one mentioned
above.

Why is correct packing important?

Stock items will need to be packed properly for customers to receive their
goods in good condition. You will need to make sure that all stock items are
packed securely and protected against damage during delivery. If you are not
sure which packing methods you should use to guarantee that stock items are
securely packed, you should ask for help. Staff working for delivery
companies are usually keen to advise on the correct packing methods to be
used. If customers receive goods in a damaged or insecure condition, a bad
impression of your work and your company will be given. This will damage the

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working relationship between customers and your company. Customers may

then decide to place their orders with other warehousing companies.

Your warehouse will use different packing methods or packing materials to

make sure that stock items are properly packed. One of the worst things that
can happen in the delivery process is that items are damaged because they
were not protected properly by the correct type and amount of packing. You
should also use packing labels and stickers to tell people if the stock is fragile
or easily damaged. Place these stickers where they can be easily seen.
Remember that the person delivering the stock may not know that it can be
easily damaged.
When the picked stock items have been properly packed, they will usually
need to be placed in stacks waiting to be despatched to customers. You will
be required to stack packed stock items so that they will not become
damaged by other packages. You must also think about the safety of your
workmates and yourself when stacking packed stock items, especially if there
is a chance that packages may fall or block warehouse floor space.

Where and how are packed stock items placed for

despatch?
Placing packed stock items in the correct location and sequence is an
important part of your daily work routine. Packed items will need to be placed
in correct sequences for loading, despatch and unloading (at the delivery
point). You must understand the requirements of your company and its policy
on stacking packed goods waiting to be despatched. The placement of
packed items will depend on:

The urgency of the order

The delivery methods required

The delivery address

Characteristics (types) of the packed items.

Some customers will need all their stock delivered at once, whilst others will
not be able to handle deliveries in large quantities.
Packed items will also need to be stacked in the correct order for unstacking,
so that the items to be delivered first can be removed from the delivery vehicle
first, without the need to re-arrange the load. For example, you should not
stack items so that the first item to be delivered is located at the bottom of a
stack.
You may be able to improve your service to customers by understanding any
special requirements that have been set up for delivery of packed stock items.
Some companies will only be able to accept delivery of stock items at certain
times, perhaps due to special refrigeration requirements. Others may only
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allow delivery to be accepted by certain members of staff, so a telephone call

before delivery may be required. You will improve customer satisfaction if you
despatch stock items, taking account of these special needs.

How should Despatch documentation be completed

and used?
Accurate completion of despatch documentation will enable packed stock
items to have the best chance of reaching customers as soon as possible
after leaving the warehouse.
You must make sure that all delivery documentation is complete and accurate.
The most important piece of information in the set of dispatch documents is
the customers delivery address. You must provide all details of the address
on the labels and paperwork.
You must also be sure of where the customer wants the goods to be
delivered. The customers mailing address may not be the same as the
delivery address. The customer will indicate on the order where they want the
goods to be delivered.
When despatch documents are being filled in, all reference numbers on every
document will need to be written accurately and clearly. The reference
numbers should be the same on all related documents, so that packed stock
items can be traced if necessary. For example, the same consignment
number will appear in each Consignment Note sticker, which is then placed on
every container of stock items delivered to a customer. This consignment
number will then appear on the single Multi-Parcel Address Label used for
despatch of these containers.

What must be done when complaints are received?

If a customer has a complaint about the despatch of an order, you must
provide your supervisor with the information needed to deal with the
complaint. The information you will need to give quickly will be:

The packing date

Packing method

Copies or records of despatch documentation

Any other information associated with the order.

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You should have written the correct delivery address and reference numbers
on all despatch documentation. This will usually give your supervisor the
details needed to follow up any customer complaints.

SIRXINV001A

PERFORM STOCK CONTROL

PROCEDURES

TRAINING AND ASSESSMENT ACTIVITIES AND QUESTIONS

The Trainee will be required to demonstrate competence on the job, in
practical demonstration; observation, question/answer and role-play
situations, incorporating verbal questions and written work, including
completing workplace forms, either to the RTO Trainer or Supervisor, under
the guidance of the RTO Trainer.
Element of competency:
1. Receive and process incoming goods
2. Rotate stock
1.

What documents are used to receive goods into the workplace?

2. How are goods checked?

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3.

What do you do if there are too few or too many goods delivered?

4.

Why are stock takes performed?

Assessment task
Demonstrate for your workplace assessor, your ability to safely and efficiently:

Receive and process incoming goods

Rotate stock

Provide your workplace assessor with copies of any documents used for this
task where appropriate.

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ASSESSMENT MODE A - Oral questioning

Trainee name:
Name of Workplace:
RTO Trainer name:
Unit/s of competency:

SIRXINV001A

Unit Name:

PERFORM STOCK CONTROL PROCEDURES

Date of training/
assessment visit:

Instructions: In addition to written answers provided above, the trainee is required to

provide verbal answers to the following questions that will be asked by the RTO Trainer.
Read the questions prior to the Trainers visit, and be prepared to answer them, obtaining
help where necessary.
Did the trainee satisfactorily answer the following questions:

Yes

No

1. What documents are used to receive goods into the workplace?

2. How are goods checked?

3. What do you do if there are too few or too many goods delivered?

4. Why are stock takes performed?

5. Why do you need to rotate stock?

6. What do you do with old or out of date stock?

The trainees underpinning knowledge was:

Satisfactory

Not Satisfactory

Notes/comments :
Question 1:
Question 2:
Question 3:
Question 4:
Question 5:
Question 6:
RTO Trainer signature:
Trainee signature:
Date of assessment:

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ASSESSMENT MODE B - Skills observation checklist

Trainee name:
Name of workplace:
RTO Trainer name:
Unit/s of competency:

SIRXINV001A

Unit Name:

PERFORM STOCK CONTROL PROCEDURES

Date of training/
assessment visit:

During the demonstration of skills, did the trainee:

Yes

No

N/A

Maintain cleanliness and orderliness in receiving bay according to store

policy and procedures

Unpack goods using correct handling techniques and equipment

according to store policy

Remove and promptly dispose of packing materials according to store

policy and relevant legislative requirements

Check incoming stock and validate against purchase orders and

delivery documentation according to store policy and relevant legislative
requirements

Inspect items received for damage, quality, use-by dates, breakage or

discrepancies and record according to store policy

Record stock levels on store stock systems according to store policy

Rotate and store stock according to the first in first out (FIFO) principle

Dispatch stock to appropriate area or department

Apply stock price and code labels when required according to store
policy

Carry out stock rotation procedures according to store routine and

policy

Perform store code checking and reporting procedures, including

recording of waste and markdowns

Place merchandise to achieve a balanced, fully-stocked display

appearance and promote sales

Place excess stock in storage or dispose of according to store policy

and legislative requirements

Maintain safe lifting, shifting and carrying techniques according to store

OHS policy and legislative requirements

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The trainees performance was:

Not Satisfactory

Satisfactory

Feedback to trainee:
-----------------------------------------------------------------------

-----------------------------------------------------------------------

-----------------------------------------------------------------------

Trainee signature:

RTO Trainer signature:

I confirm competence for this unit SIRXINV001A

_________________
(Manager signature)
_________________
(Date)

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COMPETENCY RECORD - SIRXINV001A

After assessment the assessor, the supervisor and participant should sign the competency record. If competency is not achieved at the first attempt, strategies to
address the performance gaps need to be identified and a time for re-assessment organized.

Assessment Strategies
C U R R E N T

Assessor Comments

C O M P E T E N C I E S

Oral/written questions

_____________________________________________

Activities

_____________________________________________

Workplace project

_____________________________________________

Supervisor/3rd party report

Self-Assessment

_____________________________________________

Other

_____________________________________________
_____________________________________________

The evidence supplied is:

Valid

Sufficient

Authentic

Current

The participant is competent has shown competence in all of the following

elements:

Receive and process incoming goods

Rotate stock
Trainee Signature:
Supervisor Signature:
Trainer Signature

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D A T E _ _ _ _ _ _ _ _ _

The Trainee is

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D A T E _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

D A T E _ _ _ _ _ _ _ _ _

NOT YET COMPETENT:

Strategies to address gaps in
trainee performance:

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DATE

F O R

R E A S S E S S M E N T :

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_ _ _ _ _ _ _ _ _ _ _

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Off-the-Job Training Log

Trainee Name: ____________________________________

Supervisor signature: _________________________________

Company: __________________________________________________________________
Certificate:

II

III

IV

Date: ______/______/200____

in

Business (Office Admin/Admin)

Civil Construction

Extractive Industries

Food Processing

Hospitality

Process Manufacturing

Retail Operations

TDT (Road Transport)

TDT (Warehousing)

Telecommunications (Call Centres)

List below the times allocated to Off-the-Job training for:

Date

Activity
code

Duration

Date

Activity
code

Duration

_________________

SIRXINV001A Perform stock control procedures

Date

Activity
code

Duration

Date

Activity
code

Duration

Activity Code
1.
3.
5.
7.

Read self-paced guides

Met with Workplace Coach
Discussion on phone
Researched store policy and procedures
9. Researched workplace policies and procedures
11. Observed other staff member/s undertaking stock control procedures
13. Other research
15. Staff training
17. Complete appropriate paperwork relevant to task

SIRXINV001A

Perform stock control procedures

2. Developed knowledge of use and safety requirements

4. Worked on assessment tasks
6. Discussed assessment tasks
8. Researched legislative requirements
10. Researched industry codes of practice
12. Performance appraisal
14. Read relevant industry publications
16. Talking to the supervisor
18. Other: (specify) __________________________________________

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Participant survey of materials

Unit code: SIRXINV001A

Unit name: Perform stock control procedures

Date..
Instructions:
Please complete the questionnaire by circling the one number that best describes your answer to each
question. Please read each question carefully. For mailed surveys, place the completed questionnaire in
the enclosed reply paid envelope and post it back within seven days

Q1.

Thinking in general about the material you were given for this unit, how would you
rate it overall?

Circle only one answer

Poor .... 1
Fair .. 2
Good ... 3
Very Good .. 4
Excellent ..... 5
Dont know ........ 6
Q2.
How strongly do you agree or disagree with the following statements about the unit
material?

Neither Agree nor

Disagree

Agree

Strongly Agree

Dont know / NA

1
1
1
1
1
1
1
1
1
1

Disagree

a. The layout of the reading material made it easy to use/read

b. The layout of the assessment material made it easy to use/read
c. The font size of the material was large enough
d. The reading material assisted me to complete the assessment
e. The material was easy to understand
f. The graphics/pictures were useful
g. The graphics/pictures were sufficient in number
h. The graphics/pictures were legible
i. The materials was free from typing errors
j. The material was relevant to my job/workplace

Strongly Disagree

Circle one answer only for each statement

2
2
2
2
2
2
2
2
2
2

3
3
3
3
3
3
3
3
3
3

4
4
4
4
4
4
4
4
4
4

5
5
5
5
5
5
5
5
5
5

6
6
6
6
6
6
6
6
6
6

Comments: Please expand on the above points if you rated any of them less than 3

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______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

Suggested Answers
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1. What documents are used to receive goods into the workplace?

Delivery note

Invoice

Manifest

Consignment note

Internal packing slip

2. How are goods checked?

Counting

Weighing

Measuring.

3. What do you do if there are too few or too many goods delivered?
A damage or shortage report must be completed.
4. Why are stock takes performed?

To verify stock levels

Identify shrinkage

Financial reporting

Stock rotation

Identification of damaged stock

Clear out of old or redundant stock etc.

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SIRXINV001A

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