TLIA2207C

TLIA2207C
Participate in stocktakes
MC
Armstrong’s Driver Education

Learner Guide
TLIA2207C Participate in stocktakes
Page 2 © Australian National Training Authority 2003

ADELG1074 Customised and developed by Armstrong’s Driver Education Pty Ltd July 2009
Contents
What this Learner’s Guide is about ........................................ 5
Planning your learning ........................................................... 6
How you will be assessed ...................................................... 8
Section 1............................................................................................. 9
How do you maintain stock levels? ........................................ 9
Section 2........................................................................................... 29
How do you plan and do a stocktake? ................................. 29
Section 3........................................................................................... 39
Identify stock discrepancies ................................................. 39
Additional resources ....................................................................... 56
Feedback on activities .................................................................... 58
© Australian National Training Authority 2003 Page 3

Customised and developed by Armstrong’s Driver Education Pty Ltd July 2009 ADELG1074

What this Learner’s Guide is about
This Learner’s Guide is about the skills and knowledge required to
participate in stocktakes in accordance with workplace requirements
including: preparing for stocktakes, identifying sock discrepancies and
completing all required documentation.
The Elements of Competency from the unit TLIA2207C Participate in
stocktakes covered in this Learner’s Guide are listed below.
Prepare for stocktake
Stocktake and count stock
Identify stock discrepancies
Complete documentation
This unit of competency is from the Transport and Logistics
Training Package (TLI07).


Planning your learning
It is important to plan your learning before you start because you may
already have some of the knowledge and skills that are covered in this
Learner’s Guide. This might be because:
• you have been working in the industry for some time,
and/or
• you have already completed training in this area.
Together with your supervisor or trainer use the checklists on the
following pages to help you plan your study program. Your answers to
the questions in the checklist will help you work out which sections of
this Learner’s Guide you need to complete.
This Learner’s Guide is written with the idea that learning is made more
relevant when you, the learner, are actually working in the industry.
This means that you will have people within the enterprise who can
show you things, discuss how things are done and answer any
questions you have. Also you can practise what you learn and see how
what you learn is applied in the enterprise.
If you are working through this Learner’s Guide and have not yet found
a job in the industry, you will need to talk to your trainer about doing
work experience or working and learning in some sort of simulated
workplace.

Section 1: Maintaining stock levels
Are you able to: Yes No

1. identify minimum stock levels and when
to re-‐order stock?  
2. ensure that staff comply with appropriate
stock re-‐ordering methods and follow
correct stock level maintenance
procedures?  
3. use various methods to re-‐order stock and
maintain stock levels in the warehouse?  
Section 2: Plan a stocktake

1. assemble and interpret relevant inventory
data?  
2. apply your company’s procedures for a
stocktake or cyclical count?  
3. organise and allocate staffing, tasks and
equipment for a stocktake or cyclical
count?  
4. give team members clear directions on the
stocktake tasks they must perform?  
5. demonstrate appropriate methods for
recording information from a warehouse
stocktake or cyclical count?  
Section 3: Stock discrepancies

1. interpret data received or recorded?  
2. compare results with documentation or
inventory records, and reconcile and adjust
stock records and levels?  
3. input and report results and discrepancies
in the appropriate format and send them to
the relevant person or department?  

4. identify reasons for discrepancies in stock?  
How you will be assessed
Assessment of this Unit of Competency will include observation of real
or simulated work processes using workplace procedures and
questioning on underpinning knowledge and skills. It must be
demonstrated in an actual or simulated work situation under
supervision.
You will be required to:

• identify and describe stocktaking methods
• explain stock re-‐ordering processes in your workplace
• complete required documentation.

Section 1
How do you maintain stock

levels?

Section outline
Areas covered in this section

How do you maintain stock levels?
Why do you need to communicate with purchasing or
management about re-‐ordering?
What are your company’s re-‐ordering policy and procedures?
What documentation is required for re-‐ordering?

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
• higher 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
• higher insurance cost of stock
• more time taken for stock checking and recording of stock.
However, there are also some advantages to holding large quantities
of stock in that:
• 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.
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:
• 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.

Activity 1: How do you maintain your stock levels?
Consider the stock held in your warehouse. From the advantages,

disadvantages and points to consider on the previous pages,
choose the points that apply to your stock situation and list them
below.
If any point only applies to some of your stock, write the type of
stock in brackets after the point e.g. seasonal variations in demand
(beach towels).
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
There is feedback on this activity at the back of this Learner’s

Guide.

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 re-‐ordering 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. They have been introduced in many places to try to
increase efficiency by reducing the amount of warehouse stock.

Activity 2: Re-ordering stock
What re-ordering mechanism is used in your warehouse?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

Guide.

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
situations 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.
Kanban
KANBAN is a pull system which 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 date of delivery is set by the customer.
The workplan 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 customer’s delivery
date.
This means that it is not until the customer requests a product that it
starts moving through the warehouse.

Activity 3: Just in Time and KANBAN
If you can, arrange to visit a warehouse or distribution centre which

operates on JIT principles with a KANBAN system.
Ask the person showing you around, the following questions:
How does the JIT system work?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
How long did it take to implement?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
What were some of the difficulties in getting the system going?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
Are there items where JIT would not work?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

Do you use the KANBAN system? If yes, how does it work?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
What would you do if you had to implement both systems again?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

Fixed quantity re-ordering
This is the most conventional way of identifying when stock needs to
be re-‐ordered. 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 customer’s needs; you should not
hold more than maximum stock level because if it is not
ordered by your customers, it can:
− go out of date
− deteriorate
− become obsolete
− tie up company money with stock which is just sitting on the
shelves.
Quantities set for each of the levels need 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 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 re-‐ordering 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 don’t 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
• that stock may become out of date, obsolete or
deteriorated.
The fixed period re-‐ordering system is dependent on 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, that do not effect 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.

Activity 4: Fixed period re-ordering
List the advantages you might expect from fixed period re-ordering.
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
List the disadvantages.
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

Guide.

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.

Activity 5: Re-ordering policies and procedures
Obtain and read a copy of your company’s policies and procedures

(if there are any) for re-ordering stock.
Answer the questions below.
Who identifies when stock needs to be re-ordered?
___________________________________________________
___________________________________________________
How can they tell that certain stock needs to be re-ordered?
___________________________________________________
___________________________________________________
If there are minimum stock levels, who sets them?
___________________________________________________
How often are minimum stock levels reviewed?
___________________________________________________
Who actually re-orders stock?
___________________________________________________
___________________________________________________
How is stock re-ordered?
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________
What documentation is required for re-ordering?
___________________________________________________
___________________________________________________
___________________________________________________

What is the procedure the purchasing department must take when

re-ordering?
___________________________________________________
___________________________________________________
___________________________________________________
Are your re-ordering systems supply driven or customer driven?
___________________________________________________

What documentation is required for

re-ordering?
It is the warehouse supervisor’s 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.

Activity 6: Documentation for re-ordering
Get a copy of any documentation required for re-ordering in your

warehouse. Fill it in as a sample. Ask someone to explain to you
any parts that you do not know how to fill in.

Guide.


Section 2
How do you plan and do a

stocktake?

Section outline
What you need to consider when planning a stocktake
Types of stocktakes and stocktaking methods
Organising a stocktake

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

• 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 stocktake, 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 stocktake.
Ongoing
Nowadays, with all the computer systems operating in warehouses, a

stocktake can be carried out at any time with little interruption to
productivity.
Some companies do a monthly stocktake, using their computer to

show the amount of stock that should be held while the warehouse
staff physically check the stock against the computer’s figures. They
may even decide to do a weekly stocktake on high turnover items.
Other companies do twice yearly stocktakes which are done manually,
using the computer to assist the count while warehouse personnel
physically count each item on the stocktake. The physical count can be
checked against the figures on the computer system.

Physical stocktakes
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.
• 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 stocktake, your method of counting will depend
on the number of workers you have available.
One person stocktakes
In this type of stocktake, 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 stocktake in
reverse order – without using the first stocktake 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.

Activity 7: Stocktaking methods
What stocktake methods are used in your warehouse? (You may

need to get this information from your trainer.)
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
What benefits do these have over other methods?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
What are the disadvantages of these methods?
____________________________________________________
____________________________________________________
____________________________________________________

Guide.

How do you organise a stocktake?
Organising a stocktake 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 stocktake you do depends on the
policy of your company and the resources available. Company policy
will dictate whether you have an annual stocktake where the
warehouse shuts down for a period of time, or ongoing cyclic
stocktakes with less interruptions but a little less accuracy.
Things to consider when planning or organising a

stocktake
When planning a stocktake you need to:

• have sufficient resources to conduct the stocktake
• draw up a stocktake 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 their duties
• inform customers so that they can stock up during the
stocktake time.

Activity 8: Organising a stocktake
Talk to someone who has recently organised a stocktake in your

warehouse and find out the following:
What areas were involved?
____________________________________________________
How many staff were required, what did they do, and how were the
duties allocated?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
How long did it take?
____________________________________________________
What information did they need to get together before the

stocktake?
____________________________________________________
____________________________________________________
____________________________________________________
What documentation did they have to complete? (Have a look at

the documents and make sure you understand how to fill them in).
____________________________________________________
____________________________________________________

What was done to ensure that all staff knew the procedures and
their own tasks?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
What effect did the stocktake have on normal operations?
____________________________________________________
____________________________________________________
____________________________________________________
What was done to reduce the impact on normal operations?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________


Section 3
Identify stock discrepancies

Section outline
Identifying stock discrepancies
Dealing with discrepancies
Adjusting inventory figures

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
• buyer’s 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
• incorrect allocations.

How do you know there is a stock discrepancy?
One way to identify stock discrepancies is to compare stocktake
results with inventory. Sometimes you do not need to wait for a
stocktake 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 nonconformance 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
− dispatch documents.

The impact of discrepancies or variances on

warehouse operations
Discrepancies or variances can cause:

• a need for more stocktakes 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 by following these
steps:
• 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 stocktake 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 of 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 listed below:
• 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?

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.

Activity 9: Identifying causes of shrinkage
Fill in the table below. You may need to talk to other workers, your
trainer or your loss prevention manager, to find the answers.
Shrinkage Identified from Inventory updated
e.g. pick errors stocktake by manager after

stocktake
e.g. damage damage report form by trainer when

damage is reported
data entry
pick error
theft
damage
spoiled or out of date

How do you adjust inventory records?
You may find that after the stocktake 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.

Activity 10: Updating inventory records
Ask your trainer or refer to company procedures to answer the

following questions.
Who has the authority or responsibility for adjusting inventory

records?
____________________________________________________
When can inventory records be adjusted (anytime, on-going, only

after a stocktake or other)?
____________________________________________________
How are inventory records adjusted? (Write down a step-by-step

guide that has to be followed in your organisation.)
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

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.

Activity 11: Inventory reports
Ask your workplace trainer or refer to enterprise procedures to

answer the following questions.
How are inventory reports presented (on paper, on computer, or

verbally)?
___________________________________________________
Who prepares an inventory report?
___________________________________________________
Who is an inventory report sent to?
___________________________________________________
What information has to be written in an inventory report?
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________
Is there a set format for inventory reports? (If the answer is yes, get
a copy and make sure you are clear about what goes in each
section of the report.)
___________________________________________________

How do you locate stock?
Good location of stock is essential for speed and efficiency in the
warehouse. All staff must be able to locate stock quickly. Some of the
ways of assisting this include:
• documentation
• labelling
• computer based systems
• manual systems
• master plan
• aisle identification
• numbering of racks or bins
• colour coding of racks or bins
• floor markings.
Stock must be put away in marked warehouse locations so that it can
be found quickly and easily. Products with the same product code
must be separated into batch numbers so that specific batches of
stock can be easily identified in the case of damages, goods under
quarantine, promotional stock, and contamination.
Automatic allocation systems are available on many computerised

systems. They take into account the cubic capacity of the warehouse,
and whether block stacking or racked storage is used. These systems
are suitable for random storage slots.
Locations are normally branded using a combination of alpha and

numeric digits. For example, one bay of racking location may be
branded A44A with the bay above being A44B and so on. You must be
careful that the letters I and O are not confused with the numbers 1
and 0. Other installations are simply marked 1, 2, 3 and so on up to the
largest number, and sometimes colour codes are used for different
levels in the racking system. For example, W34 could stand for level
White bay 34.
There are many forms of allocating, but the most important thing to
remember is to keep your system as simple as possible. You should
also keep in mind that the more digits you use, the more key strokes
there are to be keyed in by the computer operator.

Activity 12: How do you locate stock?
Make a list of all the ways you locate stock in your warehouse.
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

How do you organise stock?
All stock should be organised in a way that maximises productivity and
prevents double handling. This will increase profits for the company
and have ‘flow on’ effects for all employees. Stock should also be
organised to avoid damage and spoilage due to sunlight, heat,
radiation, etc.
To store stock in the most convenient and efficient way, you should:
• use movable racks for clothing garments
− by colour
− style
− size.
• store high turnover stock near the dispatch area
• have markings on the floor to indicate where stock should
go
• place stock in bins
• have vertical stacking on racks and use Forklifts for access
• have a secure area for high cost items.
Depending on your racking and block stacking capacity, you should
always look at your movement, ‘turnover’ or order picking
requirements to help you decide how to place stock in your
warehouse. Just because a product can stack three high does not
mean it cannot be racked and vice versa.
Stock should also be organised in a way that prevents contamination
by other stock. For example, you should not have chemicals placed on
racks above foodstuffs.
Other ways to organise stock include:

• multiple locations (picking or reserve 2 bins)
• picking direct from bulk (1 bin)
• binning
• racking
• bulk stacking
• separate special purpose areas (e.g. coldrooms, freezers,
dangerous goods, storage areas)
• theft-‐sensitive cages.

Activity 13: How do you organise stock?
Explain how stock is placed in your warehouse. Give special

consideration to any stock which has special storage requirements.
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________

Why does stock location matter for stock

control?
It is very important that your customer’s orders are received correctly,
in the best possible condition, and without delay. As the supervisor or
team leader of the warehouse you must have stock located to assist:
• identification of special stock
• accurate and simple order picking
• stocktaking
• workflow
• segregating goods (dangerous goods, odours, etc.)
• isolating goods (quarantine, damages, re-‐pack, insurance
claims promotional items, etc.).
Stock must also be located so that it is easily rotated, i.e. ‘first in – first
out.’ This applies to all stock that does not have a ‘use by date.’
All stock with a ‘use by date’ should be automatically flagged on a
computer system so that you know when it is nearing expiry. This
avoids having to dump stock which passes its use by date.
Systems must be in place to prevent the same order from being picked
and or dispatched twice, and to prevent theft.
Appropriate organisation and labelling will reduce wrong picks. Most

warehouses have sophisticated computer systems that can cater for all
of the above requirements.

Activity 14: Why does stock location matter for stock control?
What precautions can you take to prevent the same order from
being dispatched twice to the same customers?
____________________________________________________
____________________________________________________
____________________________________________________
____________________________________________________
In Activity 2, you listed the ways in which stock is organised in your

warehouse. How do the different ways of organising and placing
stock help with stock control in your organisation?
Fill in the table below.
System for organising stock How this helps with stock

control

Additional
resources

References:
• Workplace Health & Safety Handbook, Occupational Health &
Safety Commission, 1992
Video:
Manual Handling -‐ Safetycare Series
Web sites:
• NOHSC (National OHS Committee – Publications)
http://www.nohsc.gov.au/OHSInformation/NOHSCPublications/
• Workcover Authority of NSW
http://www.workcover.nsw.gov.au/
• Victorian WorkCover Authority
http://www.workcover.vic.gov.au/
• WorkCover Queensland
http://www.workcover.qld.gov.au/
• WorkCover WA
http://www.workcover.wa.gov.au/
• WorkCover Corporation of SA
http://www.workcover.wa.gov.au/
• ACT WorkCover
http://www.workcover.act.gov.au/
• Workplace Standards Tasmania
http://www.wst.tas.gov.au/node/WST.htm
• Work Health Authority NT
http://www.deet.nt.gov.au/wha/index.html
Other relevant resources might include:

• workplace procedures related to stock
• workplace documents related to stock
• company Intranet related to stock
• company stock record system (paper based or electronic).

Feedback on
activities
The responses provided in this section are suggested responses.
Because every workplace is different, your responses may vary
according to your specific workplace procedures, the equipment
available and the nature of the business.

Activity 1: How do you maintain stock levels?
All warehouses are different, however, the following list may be

useful:
• manual
• computerised
• automated
• picking and reserve bins
• card making system.
Activity 2: Re-ordering stock
All warehouses are different, however, the following list may be

useful:
• manual
• computerised
• automated
• picking and reserve bins
• card making systems.
Activity 4: Fixed period re-ordering
Advantages:
• stock is delivered automatically without you having to verify what
the current or proposed stock levels are
• you can pay as you go
• you don’t have to store excess stock
• you can often get a good price for the product.
Disadvantages:
• you may run out of stock or overstock
• stock may become out of date, obsolete or deteriorated.

Activity 6: Documentation for re-ordering
All warehouses are different, however, documentation might

include:
• requisition slips
• purchasing orders.
This documentation might be automatically produced and sent by a

computer, in which case you will not need to fill in anything, but
make sure you understand everything on the forms. Otherwise, fill
in the sample forms you have collected according to company
procedure.
Activity 7: Stocktaking methods
Manual system
• Advantages:
it does not rely on expensive equipment.

• Disadvantages:
care must be taken to ensure accuracy – more manual

information processing is required to compare stocktake
results with inventory records
it takes a lot more time and labour.
Numeric keypad
• Advantages:
quicker than the manual system
can be linked directly to the inventory database of the

computer, making reporting easier than for formal counting.
• Disadvantages:
accuracy depends on the skill of the operator
cost of equipment.

Scanner
• Advantages:
quicker than the manual system
more accurate than manual or numeric systems
can be linked directly to the inventory database of the

computer, making reporting easier than for manual counting.
• Disadvantages:
cost of equipment.
Systematic or continuous stocktakes

• Advantages:
high value or turnover items can be checked more regularly

than less important items
you do not have to close down the whole warehouse to do this

sort of stocktake
discrepancies are continuously being investigated to resolve

major causes.
• Disadvantages:
some items may not be checked in a given year.
Annual or cyclic stocktakes

• Advantages:
gives an accurate picture of total stock at a set point in time

• Disadvantages:
huge disruption to normal work, particularly in a large

warehouse which may have to cease operation for a
number of days
all discrepancies between actual stock and records are

identified at once and there may be limited time to deal with
discrepancies and their causes.


TLIA2207C - Participate in Stock Takes - Learner Guide

Diunggah oleh

Informasi Dokumen

Deskripsi Asli:

Hak Cipta

Format Tersedia

Bagikan dokumen Ini

Bagikan atau Tanam Dokumen

Opsi Berbagi

Apakah menurut Anda dokumen ini bermanfaat?

Apakah konten ini tidak pantas?

Hak Cipta:

Format Tersedia

TLIA2207C - Participate in Stock Takes - Learner Guide

Diunggah oleh

Hak Cipta:

Format Tersedia

Participate in stocktakes

Page 2 © Australian National Training Authority 2003

Additional resources ....................................................................... 56

Feedback on activities .................................................................... 58

© Australian National Training Authority 2003 Page 3

Page 4 © Australian National Training Authority 2003

What this Learner’s Guide is about

© Australian National Training Authority 2003 Page 5

Planning your learning

Page 6 © Australian National Training Authority 2003

Section 1: Maintaining stock levels

Are you able to: Yes No

Section 2: Plan a stocktake

Are you able to: Yes No

Section 3: Stock discrepancies

Are you able to: Yes No

© Australian National Training Authority 2003 Page 7

4. identify reasons for discrepancies in stock?  

How you will be assessed

You will be required to:

Page 8 © Australian National Training Authority 2003

How do you maintain stock

© Australian National Training Authority 2003 Page 9

Areas covered in this section

Page 10 © Australian National Training Authority 2003

How do you maintain stock levels?

© Australian National Training Authority 2003 Page 11

Page 12 © Australian National Training Authority 2003

Activity 1: How do you maintain your stock levels?

Consider the stock held in your warehouse. From the advantages,

There is feedback on this activity at the back of this Learner’s

© Australian National Training Authority 2003 Page 13

How do you re-order stock?

Page 14 © Australian National Training Authority 2003

Activity 2: Re-ordering stock

What re-ordering mechanism is used in your warehouse?

There is feedback on this activity at the back of this Learner’s

© Australian National Training Authority 2003 Page 15

Some features of a JIT system include:

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

Page 16 © Australian National Training Authority 2003

© Australian National Training Authority 2003 Page 17

Activity 3: Just in Time and KANBAN

If you can, arrange to visit a warehouse or distribution centre which

Ask the person showing you around, the following questions:

How does the JIT system work?

How long did it take to implement?

What were some of the difficulties in getting the system going?

Are there items where JIT would not work?

Page 18 © Australian National Training Authority 2003

Do you use the KANBAN system? If yes, how does it work?

What would you do if you had to implement both systems again?

© Australian National Training Authority 2003 Page 19

Fixed quantity re-ordering

Page 20 © Australian National Training Authority 2003

Fixed period re-ordering

The main disadvantages of this system are:

All ordering systems are subject to factors such as:

© Australian National Training Authority 2003 Page 21

Activity 4: Fixed period re-ordering

List the disadvantages.

There is feedback on this activity at the back of this Learner’s

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

Other companies may have a different re-‐ordering system from the