Supply Chain Management Project

Topic
Study on Warehouse Management and Inventory Management
At JAKSON GROUP

Submitted to
Prof. M S Kumar

Submitted by
SUMIT JADAUN
(PGSF1508)

JAIPURIA INSTITUTE OF MANAGEMENT

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)
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In JAKSON GROUP the work that was assign to me was:

Negative Inventory
Receiving of stock
Generate IRN and GRN in SAP
Store operation
Warehouse management
Customer service desk
Audit

1. Negative Inventory is the situation in which the inventory count is less than the zero of the
item. Negative inventory is the temporary inventory condition that occurs mainly due to
timing issues in the transfer of product or the improper exposure of the count when the
more than one location are used for the same product.
Its Impact
a. Negative inventory lead to incorrect inventory valuation: When JAKSON GROUP store
has a negative inventory, then during the time of inventory valuation that negative
inventory is not counted. This happen because if the negative inventory item is counted or
added to merchandise which is available in the store will lead to show more negative
inventory.
b. Negative inventory shows current on hand incorrect: Negative inventory shows wrong
current on hand when entering of sales transaction before the purchase transaction takes
place. That means the employees sales that inventory item that is not available in the store.

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How to check Negative Inventory

There are various method to check negative inventory, one of the most common method that use
in JAKSON GROUP store is that checking the inventory . Every single department has the
inventory report in which the sum of article, Article Description, Sum of quantity, Sum of
amount is mentioned. So that each product has a unique identity and negative inventory can be
easily identified. We can check negative inventory by looking into Sum of Quantity as the
product quantity is given in negatives and so the amount of the product will also be in negative.
Solution for negative inventory is STOCKTAKE.
In stocktake the physciacl checking of the quantity and the condition of the inventory take place.
This activity is to be done for the existing product available in the store.Stocktake is the very
intensive process and it is typically done for the benefical of the company finacial statements.
The stock take process in JAKSON GROU[P is as follows:

100% stock take/ physical inventory audit activity in store is must to be conduct as per
the pre stock take schedule disseminated by Zonal Stock Controller for each stock take

cycle( each cycle = 4 months)

Store manager and store auditor are responsible for the successful completion of the stock

take process.
Stock process can be scheduled only the working hours/ business hours (mainly night)

and must be completed before start of business next morning.

The stock take process take place as per the Systematic Operation Procedure of the
company and classified into following sections:
Planning & scheduling
Pre stock take process
Stock take process
Post stock take process
Shrinkage reporting

2. Receiving of stock, In this first we have to look after the products that the products that we
receive are of same quantity that we have ordered in our PO (Purchase Order) and then
after we have to match the bar code that is given to the vendor and scanning of the goods as
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well so that we are able to know that there is no difference between the older and the new

3.

4.

prices.
Generating Inward Register Number and Goods Receiving Note from SAP command
zreg1 - For creating inbound
zreg2 - Doing edit in the inbound
zreg7 - To look after the saved bond and generating the report.
zkpo - if MRP is already high to low it we use this command.
zmrp - if MRP is low n we have to increase that than we use this command.
Store Operation includes handling the customers properly, proper display of the products
in the store, maintaining the shrinkage and damage in the store, proper lightening and

5.

ambiance in the store and all the store operation in JAKSON GROUP.
Warehouse management is managing stock properly in warehouse, proper entries and date
on cartons and keeping goods at particular place allotted for particular items and keeping in
the mind the dispensary or the damage item returned to the vendor when the new stock is

6.

received.
Customer Service Desk is handling the customers, exchange policy, return policy, profit
club card, payback card, credit notes, and maintaining registers of free gifts, alteration, gift
wrapping. As the given name suggests this is the detach department which focuses on
customer services like if a customer finds difficulties in finding any products and any
queries related to replacements, if there is any customer complaints, they are looked into.
There is also are placement counter where if a customer is dissatisfied or wants to exchange
the product, the customer can replace it within seven days of their purchase. Customer
service desk is also answerable for announcing all the offers running in the store on
different products. There is also a gift counter where a gift packaging for any product is
done if the customer wants. This department also collects customer opinion/ feedback for
continuous enhancement in their services. The ultimate aim of CSD department is to help
and make happy the customer in every possible manner and makes the customers

experiences memorable. Roles for CSD

Answer the call within three bell
Listen to your customer
Deal with customer complaints within 24 hour.
Train your staff to be always helpful, courteous and knowledgeable.
Take some extra steps.

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7. In Audit we check whether the different departments of the store are working according to
the companies SOP or not. Objective of store audit
To maintain the maintenance and hygiene of the store.
To prevent fraud
To maintain the effective system of internal controls.
SEL AUDIT
The SEL audit is the audit in which the Manger checks weather the price of the product

and price shown in SEL is matched or not.

Objective of SEL Audit
To reduce the mismatch of MRP and SEL
To reduce the confusion by seeing the MRP of the product

RECOMMENDATIONS
1. Proper ambience level should be maintained in the warehouse as well and also the space
should be properly maintained.
2. There should be proper maintenance of the damage products (expired, improper package) as
well in the warehouse and proper space should be provided that where should be the defective
products should be kept of the different department.

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3. The products which should come first has to be send to the floor first so that there is less
chance of expired of the products.
4. Some more incentive or surprise bonus should be given to the employees so that there should
be less rate of retention in the store.
5. Space for the warehouse should be increased so that the chances of chaos should be prevent
and thus the proper flow of the work should be done.
6. Warehouse in charge to cross check with the security inward register and warehouse register
and tally with the system generated inward history on a daily basis.
7. Try to increase the guards and CCTV cameras in warehouse and also check expiry date of
items at regular interval.
8. Always check on promoters when taking items from warehouse because they only care about
their product are not other items.
.

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