After the implementation of GST from July 2017, the industry was all ears about the E-way bill to be soon passed by the government to streamline the supply and delivery of the goods. JAL has long term collaborations with GST experts who provide GST consultancy services to well known corporates & also support in smooth implementation from all aspects & also have software for smooth implementation of E-way bills.
While managing the warehouse, client deals with a few critical issues with the warehouse service provider (C&F agents), irrespective of the size or capacity of the warehouse. In the last blog, we spoke about these critical issues. Taking it a step forward, we will be sharing with you a series of blogs on how to approach these issues and resolve them.
A major issue that is faced related to inventory management – ensuring that the actual stock at the warehouse matches 100% with the system stock. Availability of physical stocks vs. the system stock has an obvious impact on the delivery of goods and profits of the business.
Thus, JAL’s team, over the years, have studied these inventory flow processes in detail and have come up with certain stringent process.
How do we manage the inventory?
One of the principles that our team has adopted is “having a culture of discipline” such that each and every smallest of the jobs in terms of inventory management are done rigorously, on daily basis, month on month, such that it becomes a part of the work DNA.
We have been following and implementing this culture rigorously along with the the below mentioned steps, for one of our well established FMCG client.The results have been amazing as Jal’s warehouse management team is capable to complete the 100% physical stock counting in just 6-7 hours.Whereas the past C&FA used to take 3 days to complete the same task and still had disputes with the commercial team of the client.
Some of the steps we have adopted, along with the culture of disciple, include:
Having a regular cycle count which help in managing the stocks in a way such that each and every item is accounted for. The daily cycle count of the products ensures that there is no mismatch in the physical stock and system stock. This also supports in cutting down on products being wasted.
Monthly Physical Verification – In a month we allot 1 to 2 days wherein, the entire physical stock is been scrutinized by the team and is tallied with the system stock.
Regular surprise check by senior management of company, or owners of C&F – Surprise checks by senior management ensures 100% adherence to process.
Efficiently managing the Market Returned stocks & Loose pieces – In terms of reverse logistics and loose single pieces of SKU’s, there are high chances of manipulation by the ground level people. Thus we ensure that when we receive any market returned stock, it is checked and reported immediately to the client, to take necessary actions.
All these stringent processes will fall flat, in case the manpower is not motivated and trained enough to manage them rigorously. Thus, it leaves us with the second and most critical issue of “managing the manpower”. Stay tuned for our inputs on resolving the manpower issues in the upcoming blog.