inventory management system & controls

TABLE OF CONTENTSPARTICULARS PAGE

Introduction 1

Functions & Responsibilities. 1

Organization Chart 2

Procurement 34Procurement (Flow Chart) 4

Inventory Movement - Transfer to Branches. 6

Distribution (Flow Chart) 9

Issuance 10

Indent & Duty Free Sale 13

Indent Sale (Flow Chart) 14

Duty Free Sale (Flow Chart) 15

Inter Branch Transactions. 16

Inter Branch Transactions. (Flow Chart) 17

Temporary Issue of Parts and Consumables 18

Cannibalization 19

Machines For Training. 22

Sales Return 23

Machines On Rentals 23

Trade-in Machines 24

Formats & Reports.

INTRODUCTION.

FUNCTION & RESPONSIBILITIES-

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Store is responsible:- For all transportation and logistics of goods to and from branches in safe and sound conditions.-

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- To provide timely and accurate information on location,movement,valuation,and status at any point of time.

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During the last five years Shirazi Trading Company (Private) Limited (STC) is passing through change process and has achieved the structural capabilitiy to assimilate any change needed to facilitate the operations of the business.Now organizational structure is in place.Staff understand the meaning and need of organizational change rather more equiped for any challanges for the organizational growth in future.

During the years 2002-03,2003-04,2004-05 inventory turnover was to the tune of Rs.215m,Rs.390m and Rs.415m respectively which is estimated to be Rs.450m during the year 2005-06.

Company has over 20 items in its current product line and striving to continue adding profitable products and leaving those having no more nector.Currently inventory comprises of over 7,000 accounts of different items and parts having aggregate average cost of Rs.50.0m at one time during the year.

Organization of store comprises of Central store at Head Office and store at six other location of the branchs at Karachi,Lahore,Islamabad,Peshawer,Multan and Faisalabad.All stores at branches work under the control of Central Store.Hence Store Officer at each store directly reports to Store Incharge in central store at Head Office and administratively reports to respective Branch Manager/Incharge.

Inventory and Store Department is a service department to facilitate operational departments by ensuring availability of inventory at all location so that they perform their sales services and marketing activities.

Store is the custodian of inventory items procured by each functional department and is responsible for efficient and reliable storage facilities.

For efficient inventory management and advise to the related department for nonmoving,slow moving,holding period,inventory levels,reordering levels,obsolesence, and costing.

To maintain adequate inventory levels of goods at branches to meet the demand for sale by providings reports on consumptions & inventory levels at branche from time to time.

To intimate the concerned department to initiate placement of new order according to the lead time and its size and its composition.

To maintain efficient reporting capabilities on quantity,cost, status,item history & movement,condition,location,turnover,cannibalization and obselence.

KHI.StoreKHI.

Store

PSH.StorePSH.Store

ISD.StoreISD.

StoreMUL.Store

MUL.Store

FSD.StoreFSD.Store

LHR. StoreLHR. Store

CENTRAL STORE

SHAHZAD:System Dependent Issues

C55

SHAHZAD: System Dependent Issues

STCSTORE DEPARTMENT - Organization Chart

Cheif Financial Officer

ACFO

Store Executive- 14(Amir Nawab)

Store Officer (1) - 16(Ghous ul Azam)

Store Executive- 14(Shahzad Motasim)

PROCUREMENT:

IMPORTS

Consignment :

1 - Bill Of Entry reference.2 - International supplier's invoice.

3 - Schedule of shipment

( Prepared in coordination with respective department for which items imported.)

LOCAL PURCHASE

Goods when delivered must be accompanied with the following documents,

1- Bill of local supplier.2- Delivery Challans.

Procurement is the function of each department. Store department is responsible for inventory's custodianship,logistics,maintenance and its management.

Store department will provides information to respective department in respect of remaining stock level and recommend for reordering.

Central Store takes the physical possession of inventory items received either through Imports or purchased locally ensuring goods received in accordance with the specification ordered and in good condition.

On intimation of Import Department store takes the physical possession and prepares Stock Receiving Report (SRR).Import department will intimate store with the following documents before shipment of any

Import department is responsible to maintain progressive landed cost at each level. Before arrival of inventory in Central Store import department must ensure timely generation of all necessary documents in ERP & that all charges have been accounted for, necessary provisions made, and landed cost conveyed to Central Store.

Store takes the physical possession and prepares Stock Receiving Report (SRR) for all items purchased locally.Respective departments must ensure that Purchase Order issued to supplier with supporting approvals of the departmental head and the CEO be provided to Central Store before delivery of goods otherwise store is not authorised to take the possession without Purchase Order.

Central store will take the physical possession of goods and acknowledge the receipt of goods on suppliers delivery challans.

If the goods delivered directly to any branch,handcarried by someone or purchase locally at branch,it must be handedover to Store officer of respective branch alongwith necessary documents.Store officer will immediately after taking physical possession of goods inform the Central Store about such delivery and send necessary document as mentioned above to Central Store.

Central Store will after ensuring that Bills are in accordance with Purchase Order and is accompanied by all documents required by any provision of law , generate the Bill and Stock Receiving Report and will forward the Bills to Finance Department to be processed further for payment to vendors.

On arrival of goods through imports or local purchase, Technical/physical verification (Figure.2.1 ) will be conducted by Central Store. For obtaining technical satisfaction Central Store may consult the head of the department for which goods have been purchased.

SHAHZAD:Handcarry/FOC

SHAHZAD:Local Purchase

C133

SHAHZAD: Handcarry/FOC

C139

SHAHZAD: Local Purchase

PROCUREMENT:

FLOW CHART

CS recommends for reordering

Depart.'s Decision

local PurchaseProcess

Central StoreSRR

(Local)SRR

(Imports)

POSupplier's Bill

DeliveryChallan

BOE

Int.SuppliersInvoice

Import Process

Figure 2.1

INVENTORY MOVEMENT - TRANSFER TO BRANCHES

DEMAND TO -CENTRAL STORE

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DESPATCH -TO BRANCHES.

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On the written instruction (E.mail) of Branch Manager/ACE, Store Officer of the respective branch will raise 'Demand of Item' (Figure.4.1 & 4.2) to Cental Store, and

Simultaneously send e.mail to head of the department mentioning the demand number he has raised.

Departmental head (who has the access to ERP) will approve the demand and intimate to central store through e.mail mentioning demand number he has approved to transfer the inventory to branch.

Departmental head will approve quantity of the demand only if quantity is available at central store. (Figure.4.3).If the quantity demanded by branch is more than the quantity available in cental store, the departmental head who is approving the demand will cancell the unapproved balance of demanded quantity.

Approved demands reached till 3.00pm to central store will be executed same day.

Approved demand reached after 3.00pm to central store will be executed following working day.

Head of the department will followup all the pending demands and on availability of stock approves the pending demands for store's execution.

Central Store will make STA and ensure proper packing of items before handing over to courier.

Stock Transfer Advice (STA) must accompany the stock being despatched to branches. STA, preferably taped with the packet, in case tapping is not possible it may be sent separate with the same courier.

In such a situation where despatch of STA is not possible with consignment( for example late night direct consignmet etc).Following morning STA will be faxed or e.mailed to the destination.

Due to any reason if goods could not be despatched,central store will intimate via e.mail to respective branch and 'CC' to head of the department.

Central Store will intimate branch store via e.mail for despatching goods by mentioning STA No.

Non inventory items will not be handeled by store for despatch to branches i.e Brouchers,Technical material,promotional items etc.

Incase non availability of goods, central store will intimate same day via e-mail to respective branch about the status of the inventory .

SHAHZAD:demand for dd/hcarry etc

F279

SHAHZAD: demand for dd/hcarry etc

RECEIVING AT -BRANCH

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Figure: 4.1

Upon receipt of physical stock from Central Store, Store Officer at branch will check and take the possession of goods according to Stock Transfer Advice (STA) accompanied with the consignment.

Store Officer after taking physical possession and placing appropriately in store immediately prepare Stock Receiving Report (SRR) and intimate (e-mail) central store for goods received and SRR prepared.

Incase due to any demand is not entertained and still is pending Store Officer at branch will follow-up the same outstanding demand instead of issuing another new demand.

Figure: 4.2

Figure: 4.3

DISTRIBUTION

FLOW CHART

BM/ACEInstruction

Br.Store

ItemDemand

RespectiveDeprt.

SO,se.mail

ApprovalCentral Store

PendingDemand

Goods

STA

SRR

ISSUANCE

ISSUANCE -AGAINST INVOICE.

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FREE OF COSTISSUANCE

Figure: 6.1

Store Officer will only issue physical inventory against invoices already prepared in system by the respective departments.

Store Officer will ensure that the item has been properly checked by Sales Officer/Engineer before leaving store, otherwise any claim of damaged goods or abnormality of item after leaving store will not be considered.

One toner which is to be delivered with new copier for installation needs not to obtain approval to issue on FOC.For any extra quantity If not mentioned on PO, approval will be arranged by Sales Officer from BM/BI, head of the department, and MF&A before obtaining item from store.

If the item needs to be supplied on FOC basis against warranty 'Stock Issue Requisition' will be initiated by related Sales Officer/Engineer,recommended by departmental incharge and be approved by Branch Manager.

Items for office use or for capitalization will be issued from store on Branch Manager's approval.Whereas at Head Office need approval of MHR,Head of the department of item belongs to,MF&A and the CEO.

Store Office before issuing item from store will ensure compliance of all due requirements.

Other requests for FOC items will needs to be approved by Branch Manager & Head of the department and MFA.

PRIVATE

WAREHOUSING

ISSUANCE FORDEMONSTRATION &TEMPORARY BORROW.

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Figure: 6.2

In case of need respective department is responsible to arrange private storage facility with the help of Admin.Department.Inventory will be placed in and be released from private store through with the joint authorised signatories one Head of the Department and other Store Incharge.Central Store will be responsible to maintain the record and its physical verification.

For the trading business, machines needed for demonstration at customer's place to pursuade their decision is inevitable. Machine for demonstration can be issued by adopting the following procedure.

Items for demonstration purposes will not be allowed to remain out for more than 48 hours.

Request (Figure: 6.2) will be initiated by the Sales Officer and be approved by Branch Manager.Than it will be executed by the store officers at branches.

At Central Store if any machine is needed for demo.purpose, request will be approved by the departmental head, MF&A and the CEO (Figure:6.3).

Second request for issuance of item for demonstration from the same sales officer will not be considered until the first is cleared.

Store Officer ensure that the item has been properly checked by sales officer or engineer before leaving the store.

Store Officer ensures the return of machine in safe and sound condition within agreed time i.e. with in 48 hours.

Sales Officer ensure acknowledgment of the returned machine in safe & sound condition by counter signing the demo slip & put the remarks on it.

Central Store will generate report on "Store Items on Demo."and circlate to all concerned.

Figure: 6.3

INDENT & DUTY FREE SALE

INDENT SALE.

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DUTY FREE SALE -

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- Central Store will prepare SRR with duty free landed cost.-

Business needs that machines are delivered to customers who are entitled for Custome Duty Free sale.Following procedure will be adopted in this case :

Store Officer will only issue machine against request for the machine to be delivered to the customer entitled for indent sale/duty free,sale after ensuring:

Complete filled up Demo. slip initiated by Sales Officer/Executive and duly approved by Branch Manager. attached with purchase order.

Purchase order must clearly depict 'Terms of Payment' that amount against invoice will be paid to STC or will be remitted to the principal.

Store Officer will be responsible to send copy of customer's purchase order to Import Department at Head Office to arrange import of the machine.

On receiving of shipment details from the principal, import department will intimate shipping details to store officer at branch.

Store Officer on receipt of shipping details from Import department follow up with concerned Sales Officer/Executive for early obtaining of 'Customs Duty Exemption Certificate'.

After obtaining 'Customs Duty Exemption Certificate' Store Officer will send the same to Import Department at Head Office immediately.

Machine will be released from customs by Import Department on receipt of 'Customs Duty Exemption Certificate' and will be delivered to central store.

Central Store will instruct (E-mail) the concerned branch to STA to head office of machine delivered on demo.slip against indent sale.

Central Store will Prepare SRR against aforesaid STA by changing serial number and takes the machine in to Central Store.

In case, purchase order from customer (entitled for duty free sale) depicts that payment will be made to STC against its invoice,machine from store will only be issued against 'Duty Free Sales Invoice'.

Store Officer will issue machine against duty free invoice only when he receives Purchase order of customer entitled for duty free sale.

Store Officer will be responsible to send copy of customer's purchase order to Import Department at Head Office to arrange import of the machine against purchase order.

On receiving of shipment details from the principal import department will intimate shipping details to store officer of the branch.

Store Officer at branch office, on receipt of shipping details from Import department follow up with concerned Sales Officer for early obtaining of 'Duty Exemption Certificate'.

After obtaining 'Customs Duty Exemption Certificate' Store Officer will send the same to Import Department at Head Office immediately.

Machine will be released from customs by Import Department on receipt of 'Customs Duty Exemption Certificate' and will be delivered to central store.

Liability recorded against import of duty free import in favor of principal will be paid off through telegraphic transfer to the principal.

Local trolly will be issued with indent sale or duty free sale only if such is negotiated and mentioned in purchase order.Local trolly will be supplied gainst local invoice.

Indent and duty free sale of non machine items is very reare,however incase of incident same procedure will be adopted as the case may be.


FLOW CHART - INDENT SALE

Customer

- SO's Request.- PO (Duty free)

Br.Store

Import Dept HO

PO

PO to Principal

ShippingDocument

Customs DutyExemption

Central StoreDuty Free Import

MachineReplacement


FLOW CHART - DUTY FREE SALE

Customer

- SO's Request.- PO (Duty free)

Br.Store

Import Dept HO

PO

PO to Principal

ShippingDocument

Customs DutyExemption

Central StoreDuty Free Import

Duty freeSale

INTER BRANCH TRANSECTION

INTER-BRANCH STOCK MOVEMENTS

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- In case tapping is not possible it may send separate with the same courier.

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Direct Inter-branch movement of stock is strictly prohibited.All such movements will be made through Central Store only, as under:

Head of the department will not approve the demands of the branch on system if the item is not available in Central Store (same as in normal course).He will simply instruct Central Store via E.mail to transfer an item from Branch-A to Branch-B.

On receipt of instruction (Email) from head of the department. following procedure will be adopted by central store:

Central Store is authorized to raise demand on behalf of needing branch while sitting in head office, to the branch where item is available.

Central Store before starting work must ensure the consensus of all the concerned including sending branch.

Central Store intimate (e-mail) the branch which is holding the item to make STA to the branch in need and physically send the item.

Store Officer at branch according to instruction of central store ensure proper packing and tape STA & the instruction received from central store with packet before handing over to courier.

Store Officer of sending store must immediately intimate Central Store & CC to the receiving store that item is dispatched and requirements of all related documents are complied with as per instruction of Central Store.

Store Officer of receiving store after taking physical possession and placing items appropriately in store immediately prepare Stock Receiving Report (SRR) and intimate (e-mail) Central Store for goods physically received from sending branch and SRR is prepared.

In case, against the sale of one branch (Branch-A) item is to be installed/delivered in the territory of another branch (Branch-B), issuance of item against invoice will be done from branch which has issued invoice (Branch-A).Then physical movement of machine will be carried out (by store staff) from Branch-A to Branch-B independently out of store business.

INTER BRANCH TRANSECTION

FLOW CHART - INTER BRANCH TRANSECTION

Concerned Departmnt

Intimatione.mail

Central StoreDemand

Br.-A on Br.-B

Br. BSTA toBr.A

SRRBr. A

Intimatione.mail to Br.- B

Intimatione.mail

TEMPORARY ISSUANCE OF PARTS & CONSUMABLES

NON MACHINE ITEMS ONTEMPORARY BORROW

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- Store Officer ensures the return of borrowed items in safe and sound condition.

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Service engineers need parts and consumables to keep with them while travelling and working on the machines of customers at their place at scattered locations.Engineers may borrow parts and consumables through adopting the following procedure.

Temporary borrowing of non machine items will not allowed beyond 48 working hours in case of local service with in the city.

Engineer travelling out of the city will return or invoice the part within 24 hours of his return.

"Temporary Borrow Request" (Figure:6.2) initiated by the engineer and approved by ACE & Branch Manager will be considered by store at branch.

Second request to borrow parts from the same engineer will not be considered until the first is settled.

Service engineer must ensure after returning or invoicing the borrowed items that outstanding against his name is cancelled.

CANNIBALIZATION

CANNIBALIZATION

PARTIAL - No independent cannibalization is allowed at branch level.CANNIBALIZATION -

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- Store Officer will keep all those tag in record for reference in future if needed.-

Cannibalization is the process where parts are removed from one machine for the use in another machine. Usually in STC these parts are borrowed from machine by technical department if not available in store.These borrowed parts are ordered to principal and on arrival these parts are returned to machine from which it was removed.

Since this is the critical act.As long as machine remains out of its part,it is not available for sale and machine remains in inventory which incur carrying cost.

Though cannibalization is not appreciated ,but if unavoidable following procedure is to be adopted:

Request for cannibalization will be initiated by The head of the department on request of ACE of the branch concerned.

Request for cannibalization will be approved by the head of the department machine belongs to, and the CEO.

On receipt of duly approved request for cannibalization Central Store will complete Cannibalization Request Form (Figure: 12.1 ) and submit on line.

Central store immediately intimate & allow through E-mail mentioning reference of 'Cannibalization Request Form" to store officer of the concerned branch to execute physical cannibalization.

Store Officer in his own presence will let the part removed by engineer and ensure only the approved part is removed from machine.

Store Officer will Immediately tag the machine with prominently marked "CANNIBALISED" (Figure: 12.2 ).Details will be filled up on tag that is date of cannibalization, reference of approval, Part Nos.,Name of engineer who has removed the part, signature of Store offcer,and ACE.

After removing parts physically from the machine and complying all requirements, store officer will immediately make SRR against submitted 'Cannibalization Request Form.

Store officer at respective branch shall maintain the status of cannibalized machine and keep follow up with Central Store for availability of part.

Central Store will be responsible to keep in focus the status of cannibalized machine and let head of the concerned department to include cannibalized part in purchase order.

Extracted parts will be utilized and be treated in system according to normal procedure for respective transaction.

On arrival of cannibalized part Central Store intimate the store concerned by sending the part to get it returned to the machine it was cannibalized.

On receiving the part in store, store officer will get the physical part through IR for cannibalization and get it fixed back to machine by the engineer (preferably by the same who has extracted).

Now the machine is available for sale and the tag 'CANNIBALISED' will be removed from machine.

Central store will generate report and circulate to the concerned on the status of the cannibalized machines on monthly basis.

Figure: 12.1

Figure: 12.2 Front

Back

TOTALCANNIBALIZATION

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By one reason or other some of the machines in store become demaged,obsolete and unsaleable condition have no fate of new or saleable machines.These machines are subject to scrap sale or total cannibalization.Some time Trading Machines do not move as committed by the sales man,hence become available for scrap sale or total cannibalization.

Total cannibalization is not allowed at branches.Machines subject to total cannibalization will be transferred to central store.

Request for total cannibalization will be issued by Area Chief Engineer to National Service Manager (NSM) by giving details of the machine is needed to be cannibalized.

Store Officer may also suggest direct to the head of the respective department for appropriate disposal of scraps which carry cost of keeping in store.

NSM will seek agreement of Marketing Manager (MM) over the value of the machine to be transferred to technical department for total dismantle.

NSM after seeking agreement of MM will give instruction to Central Store to execute total cannibalization process at Central Store.

Upon receipt of instructions from NSM,central store will arrange transfer of machine physically to central store.

After receiving, central store will issue machine on 'STOCK ISSUE REQUISITION' and handover to the engineer nominated by NSM for dismental.

Central store will keep followup with the engineer to whom machine was delivered for total cannibalization.

Engineer within reasonable time will dismental machine, extract usable parts, and prepare list with respective part numbers.List will be approved from NSM and engineer will deliver the parts along with list to central store.

Central Store will prepare SRR & take the parts in to stock against total cannibalization.

MACHINE FOR TRAINING

MACHINES ISSUED FOR TRAINING.

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Figure: 13.1

Technical training of engineers and sales staff is part & parcel of the business.Specially when new model of the machine comes in or on induction of new sales and technical staff, such trainings are being conducted at head office and at branches.

Manager Training at Head Office coordinates all such trainings. Requisition of machines for training purpose will be allowed through the following procedure:

Manager Training at least three days before the date of training will submit a requisition to Central Store to make the machine available at the location where the training will be conducted .

Above request initiated by Manager Training will be signed by Head of the department who own the machine requested for training,Manager Finance & Accounts & the CEO.

Central Store will ensure the physical availability of the required machine at the location where training will be conducted. Approved requisition will be faxed by Central Store with instruction to store officer at the branch for issue of machine on training.

Store Officer will issue machines for training on 'STOCK ISSUE REQUISITION' (Figure: ) only after receiving of approved instruction from Central Store,and get the Issue Requisition signed by ACE in case machine is needed for technical training.

Store Officer will issue machines for training on 'STOCK ISSUE REQUISITION' (Figure: ) only after receiving of approved instruction from Central Store,and get the Issue Requisition signed by BM in case machine is needed for sales training.

Store officer will tag the machine 'MACHINE FOR TRAINING" (Figure: 13.1 ) before handing over to the concerned for training.

After the training is over, Training Manager will ensure that toners etc. has been removed from machine,parts/components all are cleaned and brought in to saleable condition.

Machine will be returned to store immediately after completion of training session, duly verified by Training Manager in writing that machine is fully cleaned and is in saleable condition.

Concerned staff will be responsible to return the machine in the same condition as they have taken the possession and properly packed in to the cartons as it was before at the time of issue.

SALES RETURN

SALES RETURN

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1- Original invoice - customer's copy.2- Debit advice duly stamped and signed by the customer.

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MACHINES AND PARTS FOR RENTAL CONTRACTS

Following procedure is to be adopted to facilitate the operation of the rental business.

MACHINE Store will issue machine to deploy on rent,after receiving the following documents:REQUIRED FORRENTAL 1-

2- Copy of the rental contract with the party.

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- Parts and consumsbles needed to keep the machine runnig on rental contract will be issued from store on

Sales return is inevitable incident for trading business.Store related transactions will be completed according to the following procedure.

Sales Officer will request to BM in writing (IOC) to accept sales return giving the reason and the condition of the machine returned by customer. Sales Officer will ensure that following papers are attached with IOC:

Store officer will take physical possession of the machine after seeking BM's approval on IOC issued by Sales Officer and keep follow up for its SRR from central store.

BM with his recommendation and comments on the condition of the machine send IOC to the Departmental Head for approval.

Departmental Head with his recommendation will seek CEO's approval for sales return.

Central Store will record sales return on behalf of branch after receiving IOC duly approved by Branch Manager, Departmental Head, and CEO attached with Original invoice-customer's copy and Debit Advice.

Central store will intimate store officer of the branch that item has been recorded back into stock by sending copy of 'SRR' and 'Original Credit Advice' for onward delivery to customer through sale officer.

ISSUANCE AGAINST RENTAL BUSINESS

Rental business is one of STC's profit generating unit.Where machines are deployed at the premises of the customer and invoiced for the month's utilization of machine on per copy basis.Maintenance of the machines and consumables including paper is STC's responsibility, under the contract.

Machine issued from store capitalized to operating assets,whereas depreciation,parts,toners,drums and papers issued from store charged to cost of running machine on rent.

A written request from the engineer recommended by ACE and approved by BM/BI.

Store Officer shall keep the record (IOC - Request & copy of rental contract) of all the machines issued on rental agreement.

Engineer who has requested for the machine will take the possession from the store after ensuring that machine is sound and is in good working condition.

USED MACHINERETURNED FROMRENTAL CONT.

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TRADE IN MACHINES

ACQUISITION OFUSED MACHINEASGAINST TRADE IN

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After giving service at the customer's premises used machie may come back to store under any clause of the contract with customer.

Store Officer will take the possession of used machine after getting physical verification done by the engineer having comments on the condition of the machine.

Store Officer will immediately take the machine in to the store by making SRR with its Written Down Value.

Store Officer will attach copy of the SRR with the documents already in record with store.

Though the acquisition of used machine from customer is not favorite but some time become necessary to finalize the deal of selling new machine.However concerned sales person evaluates the profitability of the total deal and seeks approval from the concerned head of the department on the basis of his committment that he will fetch the value by selling this used (trade in) machine within the committed period.

Store Officer will take the possession of the used machines traded in against the deal of new machine along with 'Letter of Commitment'.

Store Officer will make SRR immediately after taking possession of trade in machine with 'zero' value.

Store Officer will ensure that trade-in machines are disposed off according to the contents of 'Letter of Commitment' received with the machine.

STCINVENTORY MANAGEMENT SYSTEM & CONTROL.

ACTUAL DRAFT PROPOSEDBy BM Karachi

RECEIVING ATBRANCH

Rephrased in actual draft.

Proposed by NSM to delete this condition.MM agrees on actual draft.

By BM KarachiFREE OF COSTISSUANCE

ISSUANCE FORDEMONSTRATION &TEMPORARY BORROW. MM agrees on BM Karachi's proposal.

NON MACHINE ITEMS ONTEMPORARY BORROW

MM & NSM agree with actual draft.

MM & NSM agree with actual draft.

Incase due to any demand is not entertained and still is pending Store Officer at branch will follow-up the same outstanding demand instead of issuing another new demand.

Incase due to any demand is not entertained and still is pending Store Officer at branch will follow-up the same outstanding demand instead of issuing another new demand of same part for same customer or for any other customer.

Departmental head will approve quantity of the demand only available at central store. (Figure.4.3).If the quantity demanded by branch is more than the quantity available in central store, the departmental head who is approving the demand will cancel the unapproved balance of demanded quantity.

Non inventory items will not be handled by store for dispatch to branches i.e. Brouchers,Technical material, promotional items etc.

One toner which is to be delivered with new copier for installation needs no approval to issue on FOC.For any extra quantity If not mentioned on PO, approval will be arranged by Sales Officer from BM/BI, head of the department, and MF&A before obtaining item from store.

Toners which are to be delivered with new copier, exceeds from standard procedure of toner for installation if mentioned in Purchase Order (PO) needs not to obtain approval to issue on FOC.If not mentioned on on PO, approval will be arranged by Sales Officer from BM/BI,Head Of the department and MF&A.befoe obtaining item from store.

Second request for issuance of item for demonstration from the same sales officer will not be considered until the first is cleared.

BM Karachi proposed to delete this condition, as it is not possible in our business.

"Temporary Borrow Request" (Figure:6.2) initiated by the engineer and approved by ACE & Branch Manager will be considered by store at branch.

"Temporary Borrow Request" (Figure:6.2) initiated by the engineer and approved by ACE & Branch Manager and departmental head at HO will be considered by store at branch.

Second request to borrow parts from the same engineer will not be considered until the first is settled.

BM Karachi proposed to delete this condition, as it is not possible in our business.

MHR proposed to delete this condition, as it is not possible in our business.

Proposed by MHRPARTIAL CANNIBALIZATION

Proposed by MM

Proposed by Azar Ali.DEMAND TOCENTRAL STORE

( and there must be some relaxation for emergency demand)

MM & NSM support Azar Ali's suggestion.

ISSUANCEAGAINST INVOICE.

Proposed by MM & seconded by NSM.

Central store will generate report and circulate to the concerned on the status of the cannibalized machines on monthly basis.

Central store will generate report and circulate to the concerned on the status of the cannibalized machines on fortnightly basis.

Central store will generate report and circulate to the concerned on the status of the cannibalized machines on monthly basis on 15th of each month.



Store Officer will ensure that the item has been properly checked by Sales Officer/Engineer before leaving store, otherwise any claim of damaged goods or abnormality of item after leaving store will not be considered.

As per customer's requirement sales officer/Engineer has to open the packing before him,so if any part or machine found to be damaged at the time of installation then how can he be held responsible for this damage.

Store Officer will ensure that the item has been properly checked by Sales Officer/Engineer before leaving store, any claim of damaged goods or abnormality of item must be reported to store within three hours and two days in case of outstation, after leaving store.

inventory management system & controls

Documents