📦 Inventory / Warehouse Unit

📦 Inventory / Warehouse Unit

The Inventory Unit is responsible for the control and supervision of all materials owned by the institution, whether they are raw materials, work-in-progress, finished goods ready for sale, or spare parts and operating supplies. The primary goal is to ensure the availability of materials in the right quantity and quality, and at the right time, while minimizing storage and spoilage costs.
1. 🏢 Overview and Importance of the Unit
Definition: It is the department concerned with managing the movement of inventory from the moment it is received from suppliers, through its storage and organization, up to its issuance to the beneficiaries (such as Production or Sales).
Its Importance:
* Uninterrupted Operations: Ensuring that production does not stop or customer order fulfillment is not delayed due to material shortages.
* Working Capital Optimization: Balancing having sufficient stock with avoiding freezing large amounts of capital in unnecessary inventory.
* Control and Waste Prevention: Protecting inventory from theft, damage, or obsolescence, and ensuring the accuracy of inventory figures.

2. 📝 Key Functions of the Inventory / Warehouse Unit

The functions of the Inventory Unit are distributed between the logistical aspect (physical movement) and the control aspect (recording and accuracy verification):
| Function Category | Detailed Description of Functions |
|---|---|
| I. Receiving and Inspection | * Goods Receipt: Verifying that incoming goods match the purchase orders (quantity and type). |
| | * Quality Inspection: Coordinating with the Quality Management team to inspect received materials before entering them into the warehouse. |
| | * Preparing Goods Receipt Notes (GRNs): Recording materials in the inventory ledgers after confirming their integrity and issuing the inventory receipt notes. |
| II. Storage and Organization | * Inventory Coding and Classification: Identifying suitable storage locations for materials and organizing them (Location Management). |
| | * Preservation and Security: Ensuring appropriate storage conditions (temperature, ventilation, security) to prevent damage or theft. |
| | * Inventory Maintenance: Monitoring expiration dates for perishable materials. |
| III. Issuing and Supply | * Fulfilling Issue Requests: Issuing materials based on approved withdrawal requests from other departments (Production/Sales). |
| | * Ensuring Accounting Method: Applying the adopted issuance method (such as FIFO - First-In, First-Out or Weighted Average). |
| | * Preparing Goods Issue Notes (GINs): Recording the dispensed materials and issuing the inventory issue notes. |
| IV. Control and Auditing | * Periodic/Cycle Counting: Conducting physical inventory counts to match book balances with actual balances in the warehouse. |
| | * Variance Processing: Identifying the causes of any shortages or surpluses (Inventory Variances) and addressing them accounting-wise and administratively. |
| | * Min and Max Levels: Determining reorder points and maximum inventory levels to prevent shortages or overstocking. |
| V. Reporting and Planning | * Inventory Movement Reports: Providing periodic reports on Inventory Turnover Rate and Slow-Moving Items. |
| | * Needs Forecasting: Assisting in forecasting future material needs in coordination with the Purchasing Department. |