Article

June 2024



Stores Best Practices using OurSys ERP

Stores is the heart of every manufacturing unit as it's performance is linked straight with company's profit and delivery lead times. Yet many a times, the awareness level is low. This article intends to raise awareness about how a Stores Officer should work using OurSys ERP to ultimately deliver goods faster and improve the company's profitability.


Recommended best practices for Stores


Data entry should be done in real time

All receiving and issuing entries must be done in real time as it happens. Any delay will result in wrong inventory figures.

Wrong inventory figures may result in multiple wrong decisions in various departments. For example, MRP output will be wrong and thus requisition and job order quantity will be wrong.

It also affects sales, purchase, finance and planning decisions.


Goods must be measured accurately while receiving and issuing

The accuracy of stock depends upon accurate measurements. It also affects supplier bill passing amounts.

Sometimes, in the case of small items, it is difficult to count. In such cases, you must use weight based quantity measurement methods.

Another way is to fix pack size so that actual counting is for packs which is much lesser effort than counting individually.


Material must not be issued without Material Request Note or Delivery Instruction.

This rule should be strictly followed. This ensures accountability for the material being issued. It also brings in control on the quantity being issued.

In OurSys, you cannot issue material without MRN/DI but if it is issued physically the inventory figures will go wrong.


Have control on the physical access to Stores

People other than store keepers should not be allowed to enter stores and take material

The accuracy of inventory and Traceability of the lots will be compromised if material gets removed without properly routing it through OurSys


Material must be kitted one day prior to the actual requirement

Production and Delivery teams must issue MRN/DI one day in advance. Stores must pick the material and keep it ready one day in advance.

This will save precious waiting time of operators on the shopfloor and Stores will get sufficient time to correctly pick the material in the most efficient manner.


Use Putting feature Effectively

OurSys allows you to put the same lot in multiple stores locations quickly in one go.

If the preferred location is entered in item master, OurSys prefills the location field. Therefore check your Item masters and update preferred storage locations.

You can print the picking list and hand it over to the storekeepers. They can note the location on this paper and come back to enter locations based on this paper. The print also helps them to identify the preferred location.


Naming of Stores Location must follow physical movement route

You must name the location in sequence of floors, row of racks and the grid number. This way while picking and putting the material, to and fro movement of the staff can be avoided, thus improving the efficiency.


Use Picking feature effectively

OurSys has the feature of printing Picking List based on the MRN/DI. Picking list mentions the lot to be picked, quantity and the location.

This improves the efficiency of picking the material and ensures FIFO. In case of allocations, it ensures that the right lot is picked.


Perpetual Stock Check

It is recommended that the stock should be checked on a daily basis for randomly selected items.

High value and high consumption items should be checked more frequently as compared to other items.


Use Pareto Reports to identify important items

You can use the Pareto report by value report to identify the top 20% items which are responsible for 80% of the business.

Ensure that the stock check for these items happen frequently. Also help the Planning team to always have these items in stock.


Use QRcode labeling for accurate identification

You can print QR code labels while receiving and scan these labels while issuing the material.

This ensures that the correct item has been issued and also improves issuing efficiency.


Use Items below Minimum Level Dashboard

Keep an eye on the items which have gone below the reorder level using this dashboard.

Alert the planning team if there are items below the reorder level. This will save last minute firefighting to replenish the stocks.


Use the Stock Ageing Report

Old unused stock is not only an expense but also occupies precious Stores space.

Identify such slow moving / non moving material and alert the Planning team. This will help to make the stores leaner and thus efficient.


Use Stock Nearing Expiry Report.

This report identifies material whose Warranty / shelf life is nearing expiry.

Identify such material and issue them before other lots.


Use 'Available Issued Stock' report

This report identifies material which has been issued but not yet consumed or returned.

This report is useful to get back issued tools and excess material.




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