A stock management system is a key part of the supply chain and primarily aims to control the movement and storage of materials within a warehouse and process the associated transactions, including shipping, receiving, put away and picking. The systems also direct and optimize warehouse put away based on real-time information about the status of bin utilization.
The objective of a stock management system is to provide a set of computerized procedures to handle the receipt of warehouse and returns into a warehouse facility, model and manage the logical representation of the physical storage facilities (e.g. racking etc), manage the warehouse within the facility and enable a seamless link to order processing and logistics management in order to pick, pack and ship product out of the facility.
In its simplest form, the stock management system can data track products during the production process and act as an interpreter and message buffer between existing ERP (Enterprise resource planning) and stock management systems. Stock Management is not just managing within the boundaries of a warehouse today; it is much wider and goes beyond the physical boundaries. Inventory management, inventory planning, cost management, IT applications & communication technology to be used are all related to warehouse management. The container storage, loading and unloading are also covered by warehouse management today. Even production management is to a great extent dependent on stock management. Efficient stock management gives a cutting edge to a retail chain distribution company. Warehouse management does not just start with receipt of material but it actually starts with actual initial planning when container design is made for a product. Warehouse design and process design within the warehouse (e.g. Wave Picking) is also part of warehouse management. Warehouse management is part of Logistics and SCM.
Warehouse Management monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations.
Warehouse management deals with receipt, storage and movement of goods, normally finished goods, to intermediate storage locations or to final customer. In the multi-echelon model for distribution, there are levels of warehouses, starting with the Central Warehouse(s), regional warehouses services by the central warehouses and retail warehouses at the third level services by the regional warehouses and so on. The objective of warehousing management is to help in optimal cost of timely order fulfillment by managing the resources economically.
1.2. Project Overview
This project gives a company the convenience of controlling the activity in the warehouse and thereby giving information to managers to assist in proper decision making the company. This project is pursued with Effison Limited as the focus of impact. The major modules of the project are:
User login module:
This module would be the first to appear when a user launches the proposed system. These would help to ensure that un-authorized user don’t have access to the system. At start-up users would be required to login with their username and password.
This module would be used for managerial staff for proper decision making in the day- to – day activity of the company.
This module would be responsible in registering a customer into the company database. This information used during the registration process would then be used during shipping to direct goods to the appropriate customer
New item module
This would be responsible for the acknowledgment of goods into the warehouse.
Warehouse update module
This module would be used during the process of updating the quantity of a particular good in the warehouse.
1.3 Problem Statement
The majority of the problems that occur in the warehouse occur because of a lack of control: a lack of inventory control, operational control and or management control. To become a dynamic, consistent organization, all the operation must be under control. In order to achieve this control, all the tools and technology available has to be used to get control and manage the warehouse operation. A control system is a means, mechanism or procedure by which we manage these operations
In Effison Limited the method used in tracking goods involves the traditional record keeping and identifying products according to written labels. Inventory management and distribution typically relies on a traditional process of taking a physical inventory of products and manually ordering refills, while also eliminating product that is nearing or passed its expiry.
In the recording of a transaction only a single employee at a time is able to enter the record on a ledger book and furthermore some goods are not entered in the book but sold directly. Reports are not generated daily, weekly or monthly but only on a yearly basis and this cause mishandling of funds among the employees. The warehouse does not have a backup and recovery for the products of transactions journals made for the inventory items. Security is not there because the users and the administrators both perform the same tasks.
stock management within warehouses is a challenge given the characteristic value specific nature of the products. Global visibility of finished and semi-finished products can greatly improve both inventory turnover and maximize production efficiency. One of the major goals in Stock Management is to track, store and move goods and materials efficiently; keeping inventory levels down while still always having enough products on hand. Picking and packing, controlling logistics documents, and in and outbound monitoring are all part of this process. The operations of this software include the following:
- Lowering Working Capital
- Increase inventory turns
- Managing Fixed Assets & Resources
- Improve physical inventory process,
- Prevent selling expired products.
- To keep track of all transaction to prevent any losses.
- To conduct casual analysis to identify common trends in transaction by means of reports.
- To prevent the company from running out of warehouses.
1.5 Scope of the study
The Stock management system is intended to cover all the operations of the company. The scope and tasks of the research project include finding out the scale of implementation of stock management system and perceived barriers for adoption, evaluating the strengths and weaknesses of warehouse management system currently adopted by the industry as a whole