TLIA3907B - Receive and Store Stock - Learner Guide

TLIA3907B

Receive and store

stock Learner Guide

Contents

What this Learner’s Guide is about ........................................ 1 Planning your learning ........................................................... 2 How you will be assessed ...................................................... 5

Section 1............................................................................................. 7 Receiving stock ...................................................................... 7

Section 2........................................................................................... 18 Storing stock ........................................................................ 18

Section 3........................................................................................... 29 Rotating and maintaining stock ............................................ 29

Additional resources....................................................................... 33

Feedback on activities .................................................................... 35

TLIA3907B Receive and store stock

© Australian National Training Authority 2003 Page 1 Customised and developed by Armstrong’s Driver Education Pty Ltd August 2008 ADELG1045

What this Learner’s Guide is about

This Learner’s Guide is about the skills and knowledge required to receive and store stock within an enterprise. It covers taking delivery of stock that has been ordered and delivered, storing the stock, and rotating stock in accordance with workplace procedures, safety regulations and other regulatory or legislative requirements.

The Elements of Competency from the unit TLIA3907B Receive and store stock covered in this Learner’s Guide are listed below.

Take delivery of the stock

Store stock

Rotate and maintain stock

Complete documentation

This unit of competency is from the Transport and Logistics Training Package (TLI07).


Page 2 © Australian National Training Authority 2003 ADELG1045 Customised and developed by Armstrong’s Driver Education Pty Ltd August 2008

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: Receiving of stock

Are you able to: Yes No

1. check that stock that is received matches that ordered and delivered in accordance with workplace procedures?

2. accurately identify, record and communicate any variations between order and delivery documents and received stock?

3. inspect received stock for damage, quality, use-‐by dates, breakages or discrepancies and make records in accordance with workplace policy and procedures?

Section 2: Storing stock


1. move stock to the correct storage space without damage and promptly?

2. apply workplace security requirements for storage of stock?

3. wear appropriate PPE during receival and storage operations??

4. record stock levels according to workplace procedures

5. label stock levels according to workplace procedures?

Section 3: Rotating and maintaining stock


1. rotate stock according to workplace procedures and as required?

2. safely move stock using appropriate equipment and in accordance with OHS requirements, relevant regulations and workplace procedures?



3. check and report the quality of stock in storage?

4. take appropriate action where quality of stock is outside specified standards?

5. complete required records and documentation in accordance with workplace procedures?



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:

• show that you can receive stock and make required checks according to workplace procedures

• show that you can store stock, maintain stock in storage and make required records according to workplace procedures.



Section 1

Receiving stock



Section outline

Areas covered in this section

The process of receiving stock in your workplace including:

− checking stock received against order and delivery documents

− identifying any variations in stock received

− taking action to report identified variations

− knowing and applying workplace procedures

− working safely when receiving stock



How does your workplace receive stock?

How is stock received at your workplace?

Systems for maintaining stock are important to make sure that work is not held up or delayed while essential supplies are being ordered. As stock is received in your workplace, checks need to be made so that what is actually paid for or billed is actually received and is in good condition.

Other considerations include making sure that stock does not have to be thrown out because it has passed its use by date or has reached the point where it is no longer able to be used.

Foodstuffs, film, medicines and chemicals are examples of stocks that have to be used by a certain time. Safety is also important, as some supplies cannot be stored with others – imagine storing poisons with foodstuffs!

Workplaces have systems in place to ensure that stock is:

• available when it is required

• fit for use

• managed cost effectively and wastage is kept to a minimum.

Every workplace will have differences in how stock is ordered, received and stored. Your first task will be to become familiar with the stock receiving area and understanding how stock is processed. You may have worked in the area that is responsible for ordering stock or even had to order stock yourself. Understanding the ordering system will help you understand what is required in the receiving area.

Arrange, either as part of your induction or when you begin to work in the receiving area, to be given a tour of the area.

Speak to your supervisor or trainer and ask how stock is ordered. It is important to be able to see the process of receiving stock as part of a bigger picture of stock control.

As part of your investigation, also find out what happens to the stock before it is placed in storage. Later in this unit, you will be looking at maintaining stock in the storage area.

The following activities ask you to investigate the layout of the stock storage area and types of goods received in your workplace.



Activity 1: Receiving area for stock

In the space below, draw a sketch map of where stock is received. If there is a floor plan of the building, you could use this and make additional notes to show where stock is received.

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



Activity 2: An overview of stock control

When you have found out about how receiving stock fits into the big picture of stock control, answer the following questions. • what sort of stock is received at your workplace? • how does the stock arrive (transport mode and company)? • what documentation or records are attached to the stock? • how is the particular stock item ordered?

Use the table on the following page to record this information for a range of stock items. You might need some time to fill this out. Try to get a variety of examples from different suppliers and collect this information over a period of time.



Records of stock received

Stock item Supplier How ordered How it arrives Documentation attached to received stock




What do you do when stock is received at your workplace?

So far, you have looked at how stock arrives at your workplace. The next step to look at is what you do with the stock when it arrives.

While some enterprises have moved to paperless offices and processes, most of the stock arriving at your workplace will have a set of documents attached or inside the stock containers.

The types of documents associated with receipt of stock are:

• order (this will be generated at your workplace)

• consignment note (this will detail transport details, quantities sent, identifiers of company supplying, etc)

• packing slip (this is an internal document advising the packer for the supplier what to pack and may not always be included or the consignment note and packaging slip may be the same document)

• invoice (this will come from the supplier and include transport or delivery costs and quantities and types of items supplied).

These documents might be found:

• inside the stock

• attached to the stock

• loose with the stock and handed over by the deliverer

• sent separately via mail, fax or email.

It is critical to have a record of what was ordered, what was supposed to arrive and for you to check that the stock actually arrived. Also, the stock must be checked to ensure that it is fit for use.

For example, in the paper industry, a roll of paper that will have plastic or foil laminated onto it, may arrive without any protective layer as the first hundred meters will be wasted in setting up the machine and getting it running correctly. The edge may be trimmed in the process. The excess acts as appropriate packaging for the roll of paper and is allowed for. If the outer layer is marked, this will not matter as it is trimmed off or wasted.



In many workplaces, the deliverer cannot leave until the receiver provides a signature on the suppliers’ documentation. In most enterprises, the signing of this document indicates that the goods arrived as listed on the consignment notice. In this case, it should not be signed unless the stock has been checked.

When checking stock, the stock received should be counted and checked to see that quantities match that listed on the consignment note. At the same time, the stock should be checked for:

• damage that means stock cannot be used

• fitness to use (spoiled, soiled, dinted, cracked, etc.)

• use by date (freshness, viability, etc.)

• colour, size (stock may be of the correct number but wrong size, colour, etc.).

Where any variations or problems with supplied stock are identified, check workplace procedures that apply to this situation. Options include:

• replacement

• credit

• disposal and credit

• selling off as ‘seconds’

• repair and charging to supplier

• return to supplier.

In most cases, a phone call and discussion with the supplier can sort out the situation. The relationships between the receiver of the goods, the deliverer and the supplier are important. Good relationships built up over time, through patience, being reasonable and using positive communication skills (listening, questioning, not being aggressive) will mean that when a problem exists, it can be sorted out more easily.

The option taken when there is a problem with supply of ordered stock will depend on factors such as the value of stock, urgency of need for stock, replacement time, whether supplier is internal or external.

A common problem with stock ordering is where the supplier cannot deliver the quantity required and places a ‘short order’ – in other words, if 500 items are required and only 250 can be supplied, these will be delivered and the remainder of the order delivered as and when



it becomes available. The short fall in the stock received should be noted and reported according to workplace procedures.

The following activities ask you to investigate problems that arise in stock receival and how stock is received.



Activity 3: Problems/issues in receiving stock

Talk to other team members involved in receiving stock, your supervisor or trainer. Discuss the most common problems encountered in receipt of stock and what is or can be done to fix these problems including required reporting.

Issue/problem Solution




Activity 4: The ‘rules’ of the game

Talk to others in the workplace involved in receiving stock and develop a list of ten major points that summarise what is required when receiving stock in your workplace. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.




Section 2

Storing stock



Section outline

Areas covered in this section:

Storage of stock

Special requirements for handling and storing stock

Documentation and records involved with storing stock



What’s involved in stock storage?

Where and how is stock stored?

In Section One you looked at the processes of receiving stock and checking what you received against orders placed. In this section you will look at storing the stock safely and in accordance with workplace procedures. This may involve storing stock that has special requirements for handling and storage and completing records and documentation.

Once the stock is received and checked against what was ordered and delivered, the stock must be stored. A number of factors will have been considered in designing the storage area:

• people safety when storage area is entered

• available space

• shape of containers or stock (drums, on pallets, cartons, racks or shelves, etc.)

• maintenance of condition of stock (protection from water, dirt, sunlight, physical damage)

• security of stock

• cost of storage equipment (shelving, racks, trays, other)

• availability of mechanical aids for moving stock (forklift, hand trolleys, carts, etc.)

• minimising distance and number of times that stock is moved

• stock rotation to ensure older stock is used first and before use by date

• whether stock is itself hazardous (separation of some chemicals from other chemicals that could cause ignition or explosion; radiation; flammability and flash point; biological material that is potentially or actually harmful to humans; other dangerous goods classifications)

• other issues such as those faced where living material is stored or where refrigeration is required.

When storing stock, your aim should be to complete the process of storage as quickly as possible and in a safe manner. Associated with this task is the need for accuracy in placing stock in locations that follow the stock storage system and accuracy in recording what you have stored.



In the following activities, you re asked to look at how stock is stored in your workplace.



Activity 5: Storage areas and types of storage

In the space below, draw a sketch map of where stock is stored. If there is a floor plan of the building, you could use this and make additional notes to show where stock is stored.





Take some time to look at the storage areas used in your workplace. Try to work out why the stock is stored as it is. Do a small survey of team members who use the storage area and see whether you can identify any improvements to the system in place. Use the table below to record the results of your research. An example is provided for you. Try to find 6 examples of different storage methods used in your workplace.

Stock item How stored Why stored in that way Possible improvements

Camera film Fridge in manager’s office

Maintain film in peak condition; security; no other space available

Can be a problem if manager is in a meeting and need film urgently. Move fridge to reception.




What’s involved in stock storage?

Safety is the primary concern of all enterprises and applies to stock storage. Safety issues are relevant to:

• yourself and other team members involved in stock storage

• team members passing through the storage area

• team members accessing stock from storage.

When storing stock, you will use Personal Protective Equipment (PPE) to ensure that you do not injure or harm yourself or others.

Regulations apply to the handling of a range of hazardous substances. Examples include:

• flammable substances

• radioactive substances

• biological materials

• heavy objects

• explosive goods.

Legislation and regulations cover the handling of such substances under the Australian Dangerous Goods (ADG) Code. Goods covered by this legislation must also be labelled appropriately and may have particular storage requirements. Check with your supervisor or trainer for advice on whether stock that you are required to handle and store comes under this Code and what is required to safely handle these goods.

Further information can be found in the Learner’s Guide for unit TDT D27 98B Prepare for transport of packaged dangerous goods. Some categories of dangerous goods must be segregated from other stock. Examples include foodstuffs and corrosive substances. Dangerous goods should be labelled appropriately.

The next activity asks you to investigate special handling and storage requirements for dangerous goods.



Activity 7: Safety in storage

Talk to others in the workplace to identify any stock that has special requirements for handling and storage including labelling. Find out what regulations and legislation determines these special requirements. Use the table below to list handling and storage requirements for such goods.

Stock item Handling requirements (including required PPE)

Storage requirements Relevant regulations and legislation




What records are kept?

Many enterprises have a computerised system for recording stock levels. Paper-‐based systems might also be used although these are being replaced in many enterprises.

Regardless of how the system is designed, the system will only track stock if the information on stock received and used or despatched, is accurate and entered in a timely manner.

Retail environments usually allow for a 1% ‘shrinkage’. This allows for theft, unreported use and breakage and errors. It is possible to achieve accuracy close to or at 100%, provided:

• the system being used is accurate and not able to be corrupted (by viruses, unauthorised entries, etc)

• all users enter information into the system in a timely and accurate manner

• all users are trained in how to use the system

• checks are made to ensure system is accurate.

In the next activity, you are asked to describe the system used in your workplace.



Activity 8: Record keeping

Ask your supervisor or trainer to show you what records are required to be kept, how these records are kept and how to operate any computerised systems for record keeping of stored stock.

Make a list of the main points you have learnt about recording stock in storage. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.




What labelling is required on stock in storage?

If stock is placed in storage without a label, then it can get confused with other stock, particularly where similar looking items are stored. Some enterprises use bar coding and a hand held scanner to keep track of stock. This is an easy way to do a stock take as items can be scanned, the information down loaded onto a computer and compared to what should be in stock. This is in fact done in supermarkets. Information such as stock approaching use by dates can also be identified from the scanning of the bar code.

Putting items into containers that are labelled can be an alternative to marking each item and suits small, numerous items such as bolts, screws and nails of different sizes. This system is used in hardware stores.

Labelling requirements will depend on factors such as:

• size of individual items

• end use of item

• regulations and legislation

• storage systems

• similarity or difference of items (whether items can be confused with each other)

• range within same items (sizes and colours of same items).

The next activity asks you to investigate labelling used in your workplace to identify goods.



Activity 9: Labelling

Ask your supervisor or trainer to show you what how items are labelled to keep a track of stock. Find a number of different items that have different labelling requirements and record these in the table below. Identify why this labelling method has been chosen and comment on how suitable it is.

Stock item Labelling requirements

Suitability




Section 3

Rotating and maintaining stock



Section outline

Areas covered in this section

Checking stock in storage for quality, use by date and fitness for use

Rotating stock

Documentation and records involved with maintaining and rotating stock.



How is stock maintained?

In Section Two you looked at the processes of storing stock including safety in handling and storage. In this section you will look at checks to be made on stock to ensure that stock is readily available and able to be used from the storage area.

An ideal stock storage system allows for stock to be:

• always easily located

• moved around as little as possible (not ‘double-‐handled’)

• used before reaching use by date

• counted easily

• secure

• safely stored.

Stock does not move by itself. So, any problems with stock storage are caused by human intervention. Often this will be someone ‘just grabbing something quickly because it’s needed urgently!’ Therein lies the problem – human error!

One of your tasks as a learner in the stock control area may be to ‘go and tidy up the shelves’. This can be a tedious job but does get you familiar with stock identification and let’s you learn more about how the system works (or doesn’t work).

At other times you will be asked to join in a stocktake that may involve a number of your fellow team members. The purpose of a stocktake is to check quantities of stock and the quality of that stock. An annual stocktake is done for Taxation purposes but smaller stocktakes will be undertaken during the year, often on a section of the storage area.

The next activity focuses on stocktaking procedures in your workplace.



Activity 10: Stock taking

Ask to be involved in a stocktake or when stock is rotated. During the process, find answers to the following questions:

Question Your response

How often is a stocktake undertaken of all stock? Are other smaller stocktakes made? When and why?

How often is stock checked for use by date and rotated to ensure older stock is used first? If NEVER, how is stock loss avoided from being out of date?

How often is stock checked for fitness for use and disposed of or repaired, etc? If NEVER, how is stock loss avoided from being unfit for use?

What is required when damaged/unfit for use/out of date stock is identified?

Are there any special requirements for handling stock when checking stored stock?




Additional resources



References:

• Workplace Health & Safety Handbook, Occupational Health & Safety Commission, 1992

Video:

• Manual Handling -‐ Safetycare Series

Web sites:

• Australian Safety and Compensation Council http://www.ascc.gov.au/

• Workcover Authority of NSW http://www.workcover.nsw.gov.au/

• WorkSafe Victoria http://www.workcover.vic.gov.au/wps/wcm/connect/WorkSafe

• WorkCover Queensland http://www.workcoverqld.com.au/

• WorkCover WA http://www.workcover.wa.gov.au/

• WorkCover Corporation of SA http://www.workcover.com/

• ACT WorkCover http://www.workcover.act.gov.au/

• Workplace Standards Tasmania http://www.wst.tas.gov.au/

• NT WorkSafe http://www.worksafe.nt.gov.au/



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: Receiving area for stock

Check with your trainer, supervisor or fellow team members that your drawing or map identifies the receiving area correctly and that essential features are shown such as fire extinguishers, store for PPE, other safety information, mechanical aids for moving stock, computer station to record stock delivered.

Activity 2: Records of stock received

Check with your trainer, supervisor or fellow team members that table is accurate.

Activity 3: Problems/issues in receiving stock

Check with your trainer, supervisor or fellow team members that you have identified the most common problems and issues that arise during the receipt of stock and that your solutions are realistic.

Activity 4: ‘Rules’ of the game

Show your summary to your trainer, supervisor or fellow team members and ask for feedback on the ten points that you have made. Major points will reflect: • safety issues • documents and records that are required • any special handling requirements • procedures and processes for checking stock • how information about stock is passed on to those requiring this

information • what to do if variances are identified.




Check with your trainer, supervisor or fellow team members that your drawing or map identifies the storage area correctly and that essential features are shown such as fire extinguishers, store for PPE, other safety information, mechanical aids for moving stock, computer station to record stock movements, security arrangements.


Show your summary your trainer, supervisor or fellow team members and ask for feedback on the six examples you have listed. Your examples should: • be accurate • identify why stored in that way • identify special storage and handling requirements • include improvements that are realistic.

Activity 7: Safety in storage

Show your summary to your trainer, supervisor or fellow team members and ask for feedback on the examples you have listed. Your examples could include chemicals, live material, materials that have a use by date or deteriorate in some way, radioactive materials, explosive or flammable materials.

Activity 8: Record keeping

Show your summary to your trainer, supervisor or fellow team members and ask for feedback on the points that you have made. These could include: • detail of records required • how to use computer systems to record required information • how to access records • how to print off records • security of records • checks made on records to ensure accuracy and currency • special records required to be kept under legislation or other

regulations.



Activity 9: Labelling

Show your list to your trainer, supervisor or fellow team members and ask for feedback on the examples you have listed. Discuss what you have written about suitability of labelling used in your workplace.

Activity 10: Stocktaking

Show your summary to your trainer, supervisor or fellow team members and ask for feedback on the answers you have provided. Sometimes procedures for stock taking may not be written down. In this case you may get some variety in your answers. The answers you get may help your workplace to develop procedures in this area.

TLIA3907B - Receive and Store Stock - Learner Guide

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