Notes

What is Warehousing Management?
Warehouse management is the control of the day-to-day operations of a warehouse, such as the shipping, receiving, put-away and picking of goods.

Is it the same as Stock Control?

The term is sometimes used interchangeably with the ‘stock control’ or ‘inventory control’. However, we would argue that they differ in a number of respects.

Stock control aims to maximise profit by getting inventory right, whereas WM aims to maximise the efficiency and effectiveness of warehouse operations.

Put another way, stock control means you know how many of a particular product you have and when to order more; WM tells you which bins those items are in and the order in which they need to be picked. Warehouse management software typically includes a stock control module.

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What is reverse logistics management?

Reverse logistics comprises the sector of supply chains that process anything returning inwards through the supply chain or traveling ‘backward’ through the supply chain. Hence the name reverses logistics. This can encompass anything from returned goods, inward disposal/recycling of packaging materials, the recycling/responsible disposal of materials from previously sold products, etc. The full definition of reverse logistics, according to The Council of Logistics Management, is the process of implementing, controlling, and planning the cost-effective flow of finished goods, raw materials, and in-process inventory. The flow is from the point of consumption (i.e. the customer) to the point of origin (i.e. the manufacturer), to properly dispose of these or to recapture value.

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What are the different steps of purchasing?

Purchasing, which associated with identifying needs, locating and selecting suppliers, negotiating terms, and following up to ensure supplier performance, is very important to a firm. Now purchasing goods, low material became globalize which a company should consider to make global purchasing system in order to deal with global suppliers. (Bozarth and Handfield) The issues are how company can maintain quality of goods from suppliers, and reduce its cost at the same time. If a company decides to only consider quality of goods, its cost may increase dramatically. Because the cost of purchasing is big portion from financial standpoint, if company only considers its cost, the quality of goods may reduce. This may causes the company more cost due to cost of returning defective goods. Purchasing process has two important factors. First, the firm should consider how much effort it spends on purchasing goods, and how much differ from one purchasing to next step. Therefore, the firm should think that how big its profit will be from the purchase. Second is that competitive advantage. A company usually gains the advantage from better performing from other competitors, such as installing Information Technology, Six sigma to improve its performance. (Bozarth and Handfield)

The table below is the example of 8 steps for purchasing process. (Williams)

Purchas department and financial department are in charge of purchasing process at Montage Technology.
1. Purchas department decides the detail of purchasing to financial department.


2. Financial department approves the purchasing order.

3. Purchase department reviews and determines suppliers’ information from approved vendor list and new vendor.

4. Logistics team of purchase department receives goods.
5. Purchase department and finance department manage the data, and invoice of purchase.