Question

Why do firms have separate departments for warehousing and shipping? What about ware- housing and inventory control? Doesn’t this just create more paperwork?

----------please: give me an example ------

Answer 1

Answer:- Firms has separate departments for warehousing and shipping as they are part of segregation of duties.Having separate departments serves as a check against theft, fraud, and human error.This includes warehouse andinventory control.The warehouse holds the assets, therefore inventory record keeping should be separated as an internal contol.

The warehouse department manages the inventory records,which includes recording of increase and decrease in stock.This department duty is also to place purchase orders on the basis of quantity needed and quantity available.

In the present situation, the inventory management is totally computerized. In this vendor management system, daily reports are generated by the customer and send it to the distributor. The distributor system then stocks up the customer’s store as required.The distributor is able to see what is selling and creates every part of essential provisions to automatically send the new products to the customer. No paper work is required letting the supply chain process to stay continuous.

Example:A sales order generates a stock release document to the warehouse which lists the items instock that must be pulled.This is sent to the shipping department with a packing slip.The shippingdepartment confirms what the warehouse pulled before sending the order out. The warehouse’s stockrelease document is also sent to inventory control who use it to update records and if necessary, reorderinventory.