Raw materials management is comprised of many functions, each representing a potential landmine, which can and will, blow up your production costs and warehouse efficiencies. Here are the top considerations so you don’t end up with a ticking time bomb on your hands because of poor raw materials management.
Quarantine & Holds
Most facilities use ‘Hold’ to denote an inventory freeze of product for a range of issues such as a recall to a customer return. Instead, designate permanent locations in the warehouse as a quarantine – physically isolated from ‘good’ products. After goods are received and putaway, make sure your inventory control system can put entire locations or lot # on Hold as required.
As described in Part 1, be prepared to re-label incoming product with your part number, specific trace information or with a barcode label that makes it easier to scan within your warehouse.
Most products requiring to be traced within your supply chain typically comes pre-marked with lot, serial numbering, and good to expiry dates. However, this trace information is typically not barcoded. Barcoding of this information is essential to support FIFO stock rotation, inventory counting, and pick confirmation. More on traceability
Product may arrive in bulk form be it in the form of drums, gaylords, or even rail cars. Rarely do customers and production facilities consume these materials in the same quantity as of how they’re ordered. As a result bulk products are typically re-packaged into smaller more ‘usable’ quantities. The receiving function must take into account the re-packaging time and the available space in the warehouse to perform this function. See how PO Receiving and put away is done using RF Plus™ for VISUAL ERP
Stay tuned for the next set of best practices for raw materials management.