– Life

Warehouse and
Inventory Management
Severino M. Villalon, Jr., MBA
April 14, 2018
 NEW DIRECTIONS
• Warehousing and distribution has evolved
beyond mainly storage and delivery of goods.
The network of enterprises engaged in
sourcing, creating, then delivering a finished
product to the customer is an important new
field known as, logistics and supply chain
management;
 NEW DIRECTIONS
• One of the key components in the supply chain is
warehousing and distribution. This has resulted
in:
– a new approach to how warehouses are designed and
managed;
– a new status and higher profile role for the logistics
function within corporations; and iii) a demand for
high skill levels in terms of human resources.
– Warehousing and distribution supports the industry’s
base and is of major importance
 NEW DIRECTIONS
• Third Party Logistics is a reference to the
outsourcing relationship that a service provider
has with a primary manufacturer, wholesaler or
retailer and who ships the goods to the customer;
• Growth of Third Party Logistics has increased the
base demand for warehousing/distribution sites;
• Cross-docking and similar concepts are resulting
in a need for multiple truck bays, wider spacing
between columns and taller buildings with more
clear height within the facility to allow for easier
forklift operations and stacking;
 WAREHOUSING ISSUES
Organization Structure
• Undefined scope
• Lack of communication between parties involved
• Incomplete drawings Plans are not completed and
details are missing
• Lack of conformance to requirements
• Nonstandard specifications that are not commonly
used
• Incomplete / ineffective meetings
• Difference between plans and specifications
• Don’t communicate exactly
Storage Space
WAREHOUSING ISSUES
• Large number of materials is required depending on the magnitude of the
project.
• And the term storage space implies both enclosed and open space that
can be used to keep materials of work safe until the need for it arise.
• All materials need protection against many threats such as pilferage, theft,
damage or loss. Material such as aggregates, bricks/blocks may not
require enclosed storage protection than proper outdoor positioning and
stacking. However, other materials such as reinforcement bars, steel
columns, timber, and galvanized steel for trusses must be protected
against contact with water in order to avoid rust/corrosion.
• The size of proposed building may occupy 60% of the total project site,
enabling the remaining 40% to be used for temporary access and site
facilities. In such case, the planners must arrange for periodic delivery of
certain materials to avoid cluttering the space, and maintain constant
operation to keep the area effective.
 SECURITY PROBLEM
• Security of materials onsite is of paramount
importance. Gradual pilferage and theft are
issues of concern to the project managers.
• Loss of materials through pilferage and theft
represent financial lost to the project as a whole,
and in the end it increases the cost of the project.
• Materials are prone to be stolen despite being in
store. And some materials as earlier mentioned
may not require indoor storage.
• Therefore, a well designated security system
must be maintained 24 hours onsite.
AVAILABILITY OF MATERIALS ON MARKET
• Steady flow of materials throughout project duration is
among the primary function of material management.
However, this can be affected by market availability of
the material of work.
• Occasionally manufacturers can run out of raw material
or be affected by government policy to the extent that
production may have to be slow or suspended.
• Unavailability of materials of work on market can affect
material management by either increasing competition
in material purchase or delay the general work
progress.
PURPOSE OF MANAGING MATERIALS
• The Right quality
• Right quantity of supplies
• At the Right time
• At the Right place
• For the Right cost
 TYPES OF ITEMS IN A TYPICAL SITE
WAREHOUSE
Material Type Details Example

Bulk materials Materials that are delivered in mass and Sand, Gravel, Topsoil,
are deposited in a container. Cement, Concrete

Bagged materials Materials delivered in bags for ease of Cement

handling and controlled use.

Palleted materials Bagged materials that are placed in pallets Cement, Doors
for delivery

Packaged materials Materials that are packaged together to Pipes, Tiles, Electrical
prevent damage during transportation and fittings
deterioration when they are stored.
 TYPES OF INVENTORY
• Inventory is defined as a stock or store of goods. These
goods are maintained on hand at or near a business's
location so that the firm may meet demand and fulfill
its reason for existence. If the firm is a retail
establishment, a customer may look elsewhere to have
his or her needs satisfied if the firm does not have the
required item in stock when the customer arrives. If
the firm is a manufacturer, it must maintain some
inventory of raw materials and work-in-process in
order to keep the factory running. In addition, it must
maintain some supply of finished goods in order to
meet demand.
 TYPES OF INVENTORY
• Sometimes, a firm may keep larger inventory than is necessary to
meet demand and keep the factory running under current
conditions of demand. If the firm exists in a volatile environment
where demand is dynamic (i.e., rises and falls quickly), an on-hand
inventory could be maintained as a buffer against unexpected
changes in demand. This buffer inventory also can serve to protect
the firm if a supplier fails to deliver at the required time, or if the
supplier's quality is found to be substandard upon inspection,
either of which would otherwise leave the firm without the
necessary raw materials. Other reasons for maintaining an
unnecessarily large inventory include buying to take advantage of
quantity discounts (i.e., the firm saves by buying in bulk), or
ordering more in advance of an impending price increase.
 TYPES OF INVENTORY

• Generally, inventory types can be grouped into

four classifications: raw material, work-in-
process, finished goods, and MRO goods.
 RAW MATERIALS
• Raw materials are inventory items that are used
in the manufacturer's conversion process to
produce components, subassemblies, or finished
products.
• These inventory items may be commodities or
extracted materials that the firm or its subsidiary
has produced or extracted.
• They also may be objects or elements that the
firm has purchased from outside the
organization.
 WORK-IN-PROCESS
• Work-in-process (WIP) is made up of all the materials,
parts (components), assemblies, and subassemblies
that are being processed or are waiting to be processed
within the system.
• This generally includes all material—from raw material
that has been released for initial processing up to
material that has been completely processed and is
awaiting final inspection and acceptance before
inclusion in finished goods.
• Any item that has a parent but is not a raw material is
considered to be work-in-process.
 FINISHED GOODS
• A finished good is a completed part that is
ready for a customer order. These goods have
been inspected and have passed final
inspection requirements so that they can be
transferred out of work-in-process and into
finished goods inventory. From this point,
finished goods can be sold directly to their final
user, sold to retailers, sold to wholesalers, sent
to distribution centers, or held in anticipation
of a customer order.
 OTHER KINDS OF INVENTORY
Inventories can be further classified according to the purpose
they serve such as:

• transit inventory,
• buffer inventory,
• anticipation inventory,
• decoupling inventory,
• cycle inventory, and
• MRO (Maintenance, Repair & Operating Supply) inventory.

Note: Some of these also are know by other names, such as

speculative inventory, safety inventory, and seasonal
inventory.
 TRANSIT INVENTORY
• Transit inventories result from the need to transport
items or material from one location to another, and
from the fact that there is some transportation time
involved in getting from one location to another.
• Sometimes this is referred to as pipeline inventory.
• Merchandise shipped by truck or rail can sometimes
take days or even weeks to go from a regional
warehouse to a retail facility.
• Some large firms employ freight consolidators to pool
their transit inventories coming from various locations
into one shipping source in order to take advantage of
economies of scale.
 BUFFER INVENTORY
• Inventory is sometimes used to protect against
the uncertainties of supply and demand, as well
as unpredictable events such as poor delivery
reliability or poor quality of a supplier's products.
• These inventory cushions are often referred to as
safety stock. Safety stock or buffer inventory is
any amount held on hand that is over and above
that currently needed to meet demand.
Generally, the higher the level of buffer inventory,
the better the firm's customer service
 ANTICIPATION INVENTORY
• Oftentimes, firms will purchase and hold inventory that is in
excess of their current need in anticipation of a possible
future event such as a price increase, a seasonal increase in
demand, or even an impending labor strike.
• This tactic is commonly used by retailers, but for
manufacturers, it allows them to build up inventory when
demand is low so that when demand picks up the increased
inventory will be slowly depleted and the firm does not
have to react by increasing production time.
• This process is sometimes called "smoothing" because it
smoothes the peaks and valleys in demand, allowing the
firm to maintain a constant level of output and a stable
workforce.
 DECOUPLING INVENTORY
• Very rarely will machines produces at exactly the same rate. Normally
to combat this, companies produce an inventory of parts between
machines that serves as a shock absorber, cushioning the system
against production irregularities. As such it "decouples" or disengages
the plant's dependence upon the sequential requirements of the
system.
• The more inventory a firm carries as a decoupling inventory between
the various stages in its manufacturing system (or even distribution
system), the less coordination is needed to keep the system running
smoothly.
• A balance must reached that will allow the plant to run relatively
smoothly without maintaining an absurd level of inventory. The cost of
efficiency must be weighed against the cost of carrying excess
inventory so that there is an optimum balance between inventory level
and coordination within the system
 CYCLE INVENTORY
• EOQ is an attempt to balance inventory holding or carrying costs with
the costs incurred from ordering or setting up machinery. When large
quantities are ordered or produced, inventory holding costs are
increased, but ordering/setup costs decrease.
• Conversely, when lot sizes decrease, inventory holding/carrying costs
decrease, but the cost of ordering/setup increases since more
orders/setups are required to meet demand. When the two costs are
equal (holding/carrying costs and ordering/setup costs) the total cost
(the sum of the two costs) is minimized.
• Cycle inventories, sometimes called lot-size inventories, result from
this process. Usually, excess material is ordered and, consequently,
held in inventory in an effort to reach this minimization point.
• Cycle inventory results from ordering in batches or lot sizes rather
than ordering material strictly as needed.
 MRO GOODS INVENTORY
• Maintenance, repair, and operating supplies (MRO goods),
are items that are used to support and maintain the
production process and its infrastructure. These goods are
usually consumed as a result of the production process but
are not directly a part of the finished product.
• Examples of MRO goods include oils, lubricants, coolants,
janitorial supplies, uniforms, gloves, packing material, tools,
nuts, bolts, screws, shim stock, and key stock.
• Even office supplies such as staples, pens and pencils,
copier paper, and toner are considered part of MRO goods
inventory.
 CARRYING COSTS
• The cost of carrying inventory is used to help companies
determine how much profit can be made on current
inventory.
• The cost is what a business will incur over a certain period
of time, to hold and store its inventory. The carrying cost of
inventory is often described as a percentage of the
inventory value.
• This percentage can include:
– Taxes
– Employee costs
– Depreciation
– Insurance
– The cost of insuring and replacing items
COMPONENTS OF CARRYING COSTS
Capital cost
• Cost that a business expends on carrying
inventory. It is the largest component of the
total costs of carrying inventory.
• A company will express the capital cost as a
percentage of the dollar value of the total
inventory it is holding.
COMPONENTS OF CARRYING COSTS
Storage space cost
• Combination of the warehouse rent or mortgage,
lighting, heating, air conditioning, plus the handling
costs of moving the materials in and out of the
warehouse.
• Some of the costs are fixed, such as rent or mortgage,
but there are variable costs, such as the handling of the
materials that will vary with the level of inventory.
• When a 3PL is used or a private warehouse, all the
costs may be included in a monthly cost so the storage
space cost is not relevant when determining the cost of
carrying inventory.
COMPONENTS OF CARRYING COSTS
Inventory service cost
• These costs include insurance paid on the inventory
and taxes to local government.
• The insurance that a company pays is dependent on
the type of goods in the warehouse as well as the level
of inventory.
• The higher the level of inventory in the warehouse, the
higher the insurance premium will be.
• Local authorities may tax the level of inventory in the
warehouse, so higher levels of inventory will lead to
higher taxes paid and a higher inventory service cost.
 COMPONENTS OF CARRYING COSTS
Inventory Risk Cost
• When a company stocks items in the warehouse there is always the risk
that the items may fall in real value during the period they are stored. An
item could become obsolete or superseded by a new model or version. In
the retail industry, the risk is much higher as finished items may be
seasonally specific.
• If the items remain in the warehouse too long, the value may be a fraction
of the original worth.
• Other aspects of inventory risk include the possibility that the stored items
may expire, especially with items that have a sell-by date or use-by date. If
the items expire then they can become worthless and have to be scraped.
• Items in the warehouse can also degrade, by water damage, heat damage,
or by incorrect storage.
• Pilferage and theft should also be included in the inventory risk cost.
COMPONENTS OF CARRYING COSTS
– Inventory service cost
– Inventory risk cost
 TRANSPORT STRATEGY
• Transportation is a very key element of the
logistics process and the supply chain which
runs from vendors through to the organization
to the customers.
• It involves the movement of product,
service/speed and cost and also impacts with
the movement of information and integration
within and among suppliers, customers and
carriers.
 TRANSPORT STRATEGY
• A transportation strategy, to be effective in
supply chain management, is not playing one
carrier off against another. It is not beating
down rates. Rather it is a way to respond to
the dynamics of your business, its customers,
suppliers and operation.
TRANSPORT STRATEGY SHOULD RECOGNIZE
CUSTOMER REQUIREMENTS
• The supply chain involves continuous and
efficient movement of product from vendor to
manufacturer to customer.
• Therefore the transportation program must
reflect and meet the customers needs.
 TRANSPORT STRATEGY SHOULD
RECOGNIZE TIMELINESS
• The time and service aspects of transportation
are vital.
• Being able to have a transportation program
with can do this provides customer
satisfaction and can give your company a
competitive advantage.
 TRANSPORT STRATEGY SHOULD
RECOGNIZE MODE SELECTION
• How will you move your product, by air versus
surface?
• What roles do transit time play in your supply
chain?
• How will the inventory and service impacts be
measured as compared to the freight charges?
 TRANSPORT STRATEGY SHOULD
RECOGNIZE CARRIER RELATIONSHIPS
• Volume creates carrier/forwarder attention and
infrequent shipping dictates another approach. You
cannot divide your business among many carriers.
• You cannot do this for two reasons. First, as you
fracture your business, you fracture your negotiating or
leverage position. Second, you will not be able to
develop carrier alliances which you need to meet the
supply chain service requirements.
• Transportation must be responsive and can create a
competitive advantage. Doing this means a focus with
a carrier--a relationship.
TRANSPORT STRATEGY SHOULD RECOGNIZE
MEASURING/BENCHMARKING
• Measuring means comparing performance versus
standards.
• You should measure your costs to make sure they are
controlled. It provides data for negotiations, developing
good freight costs for sales and accounting, for studies and
other purposes.
• Benchmarking means learning what other companies do -
best practices.
• Very often benchmarking is not done with a company in
your industry because competitors are not likely to share
information.
• Best practices are not the exclusive of one industry or
company.
 TRANSPORT STRATEGY SHOULD
RECOGNIZE REGULATORY IMPACT
• Regulatory changes can change, for better or
worse, your strategy.
• Changes in regulations may and will affect
your strategies. That is why these must be
monitored constantly.
TRANSPORT STRATEGY SHOULD RECOGNIZE
MERGERS, ALLIANCES & CLOSINGS
• This is an important and difficult issue. You
have analyze what is happening within each
mode and align your strategy with carriers
who will still be viable in five years.
• A great strategy with a carrier who is taken
over or goes out of business is suddenly not a
good strategy.
• Now you have to develop one with another
carrier, and that takes time.
TRANSPORT STRATEGY SHOULD RECOGNIZE
FLEXIBILITY
• Change is happening and it is not a question of
whether or not it happens. The only question is
how quickly it occurs. Your strategy has to be
ready to change.
• New customers, products, businesses, suppliers,
corporate emphasis can dramatically change
strategy.
• Recognize that change will occur and keep an
open ear and mind to other modes and carriers.
 SO IN CONCLUSION…
• Transportation is critical to logistics and supply
chain effectiveness and impacts throughout
the key issues of logistics effectiveness and
the global supply chain.
• To meet the dynamic requirements of the
supply chain, you must have a dynamic
strategy that is responsive, both as to service
and cost demands of your customers and your
company.
 LOCATIONS
• There are many factors to take into
consideration when locating a warehouse
facility.
• From location and build to storage
requirements and labor force availability,
making the right choices in regards to both
warehousing and distribution methods could
make all the difference for your company.
 LOCATIONS
• The first question to ask yourself is, which region are
you looking to serve?
• Ensuring your product is stored in a region near your
customers is important for prompt deliveries.
• This also factors into considering cost such as landed
transportation costs to facility from manufacturing, and
expected transportation costs from facility to end
customer, will help decide where you can afford to
keep your product.
• The location’s proximity to carrier facilities should also
be taken into account. Ensure your storage facility is as
close to your carrier as possible.
 LOCATIONS
• Take into consideration the locations build and
lease parameters. Does the warehouse offer rail
siding or transloading? Will racked or bulk storage
be offered, and what suits your needs best?
• Plan to consider what type of rental contract your
warehouse offers. Can the location you’ve
chosen offer more or less space depending on
the time of year? Ensure you’re properly
informed of immediate square footage storage
offerings in addition to the long-term options
available.
 LOCATIONS
• Is the location you’ve chosen properly suited
to handle your unique needs?
• Always be sure to also take any fire, disaster or
environmental concerns into consideration.
• Asking these questions now will help you
avoid a disaster later.
 LOCATIONS
• Fully understand the labor force available at your
warehouse location. Knowing your labor needs and
seeing how they stack up against the facility’s is
essential to ensure on-time delivery and future growth.
• Are there competing businesses in proximity that will
become a barrier to growth by limiting available labor
capacity?
• By taking the time to consider the above, you can limit
frustration and ensure you’ve found the perfect fit for
both you and the warehouse you’re selecting.
 RECEIVING GOODS
• The responsibility of Receiving, inspection and
dispatching department is to receive the
materials when delivered by the suppliers. After
receiving it, the quantity and quality must be
checked.
• Production parts and materials are checked
against blueprints and specifications.
• Non-production items are also reviewed. When
once it is as per the specifications given, the
goods will be accepted.
 CLASSIFICATION
• Receipt from outside suppliers
– System of receipt starts even before the material
reaches the site. The three documents that should
be dispatched are copy of purchase order,
supplier’s advice document and the consignment
note. This enables the Stores manager to organize
and plan for clearances of materials.
• Receipts from internal divisions.
– For receipt from internal divisions, usually transfer
notes and return to stores documents are used.
 INSPECTION
• Inspection can happen in two ways
– Pre- dispatch inspection
– Inspection on site
• It is the responsibility of the inspector to inspect all materials
delivered to the site prior to their being used in the work.
• It is desirable to perform inspection of materials or fabricated
products prior to their delivery at site.
• The inspector shall have rights to reject faulty material and
have it removed from site.
• With respect to manufactured goods, the quality
requirements should be specified in the purchase order.
 METHODS OF INSPECTION
There are three methods of inspection:
• Visual
• Tactile
• Statistical
 STACKING AND STORAGE
• Types of physical storage system on site vary according to the space
availability and company practices. Industrial guidelines are also taken into
consideration for the stacking and storage of particular materials.
• Materials are most often classified as per the comfort level of working of
the workers. Basic categories followed are civil, electrical, plumbing,
finishes, construction chemicals, miscellaneous.
• The materials are also often stacked as per the specification of the vendor
or manufacturer. Relevant IS Codes (IS: 4082: recommendations on stacking
and storage of construction materials at site) specifications are also
followed:
– The materials should not be affected by impurities or atmospheric agencies.
– Materials like cement should must be stored in covered sheds and stacked
on timber raised platforms.
– Reinforcing bars should be stacked yards away from moisture to prevent
rusting and also away from oil and lubricants. Bars of different classification,
sizes and lengths should be stored separately to facilitate issues.
 INVENTORY CONTROL FOR
QUANTITATIVE ANALYSIS
Inventory control can be defined as:

“that which ensures the supply of required

quantity and quality of inventory at the
required time and at the same time prevent
unnecessary investment in inventories”
OBJECTIVES OF INVENTORY CONTROL
• To ensure that the supply of raw material & finished
goods will remain continuous so that production
process is not halted and demands of customers are
duly met.
• To minimize carrying cost of inventory.
• To keep investment in inventory at optimum level.
• To reduce the losses of theft, obsolescence, wastage.
• To make arrangement for sale of slow moving items.
• To minimize inventory ordering cost.
 MAIN TECHNIQUES IN
INVENTORY CONTROL
• The Pareto principle states that 80% of the
overall consumption value is based on only
20% of total items.
• In other words, demand is not evenly
distributed between items: top sellers vastly
outperform the rest.
 ABC ANALYSIS
• The ABC approach states that, when reviewing
inventory, a company should rate items from A to C,
basing its ratings on rules.
• The ABC inventory control technique is based on the
principle that a small portion of the items may typically
represent the bulk of money value of the total
inventory in construction process, while a relatively
large number of items may from a small part of the
money value of stores.
• The money value is ascertained by multiplying the
quantity of material of each item by its unit price.
 PROCEDURE FOR ABC ANALYSIS
1. Make the list of all items of inventory.
2. Determine the annual volume of usage &
money value of each item.
3. Multiply each item’s annual volume by its
monetary value.
4. Compute each item’s percentage of the total
inventory in terms of annual usage in money
terms.
 PROCEDURE FOR ABC ANALYSIS
“A” Category – 5% to 10% of the items represent
70% to 75% of the money value.

“B” Category – 15% to 20% of the items

represent 15% to 20% of the money.

“C” Category – The remaining number of the

items represent 5% to 10% of the money
value.
 PROCEDURE FOR ABC ANALYSIS
• The relative position of these items show that
items of category A should be under the
maximum control, items of category B may
not be given that much attention and item C
may be under a loose control.
 EOQ ANALYSIS
The EOQ refers to the order size that will result
in the lowest total of ordering and carrying costs
for an item of inventory.

– If a firm place unnecessary orders it will incur

unneeded order costs.
– If a firm places too few order, it must maintain
large stocks of goods and will have excessive
carrying cost.
 TECHNOLOGIES USED
The tools used change constantly with the
continuous changes of technology. Researchers
are finding ways to apply those changes in
technology in order to improve production and
lower the cost of the operations.
• Bar Codes
• RFID-Radio Frequency Identification
 BAR CODING & ELECTRONIC
DATA PROCESSES
• There are many devices used to simplify work for
a Warehouse. One of the them is to use bar
coding as an input to an electronic database.
• Many warehouses use bar coding because
– It’s simple
– It’s Cost Effective
– Available Technology
– It minimizes errors
– It provides security
– Tracking saves time
RFID-RADIO FREQUENCY IDENTIFICATION

A Radio Frequency Identification (RFID) system

is an automated data collection system similar
to bar code. RFID applications in construction
are mostly intended to provide accuracy in data
collection, to improve productivity and to save
time in the data collection process.
RFID-RADIO FREQUENCY IDENTIFICATION
An ADC (Automated Data Collection) technology
that:
• uses radiofrequency waves to transfer data between
a reader and a movable item to identify, categorize,
track, etc.
• Is fast and does not require physical sight or contact
between reader/scanner and the tagged item.
• Performs the operation using low cost components.
• Attempts to provide unique identification and
backend integration that allows for wide range of
applications.
 HOW RFID WORKS
RFID Components Details
Tags Tags or transponder are normally located on
the object or people to be identified.
Reader Reader interrogator provides, read and
write/read facilities through a fixed or
mobile reader to communicate data to and
from the tags.
Antenna Antenna is the conductive element that
enables the tag to send and receive data
 PASSIVE RFID TAG
• Generally, passive tags have shorter read ranges of a
few inches to 30 feet, but have a long life than active
tags.
• The passive RFID tags consist of a microchip attached
to an antenna and can be packaged in a different way
such as mounted on a substrate to create a tag,
sandwiched between an adhesive layer and a paper
label to create a printable RFID label (or smart label),
embedded in a plastic card, a key fob, the wall of a
plastic container, and special packaging (to resist heat,
cold or harsh cleaning chemicals)
 PASSIVE RFID TAG
• Do not require power – Draws from
Interrogator Field
• Lower storage capacities (few bits to 1 KB)
• Shorter read ranges (4 inches to 15 feet)
• Usually Write-Once-Read-Many/Read-Only
tags
 ACTIVE RFID TAGS
• Active RFID tags have their own internal power supply and are
rewritable.
• The features of the active tags are much larger and heavier, and
more expensive, but have a better noise protection than passive
tags.
• However, they have a shorter battery life of up to 10 years, with
read range of 60 feet to 300 feet (20 to 100 meters).
• Active tags are more reliable in environments such as water
(including human/cattle, which are mostly water), metal (shipping
containers, vehicles), or at longer distances for generating strong
responses from weak requests.
• They also have larger memories than passive tags and the ability
to store additional information sent by the transceiver
 USES OF RFID
• Material Tracking: Material as the move in the
jobsite since direct contact is not required for
data collection. This can avoid theft and lost
since managers can notice when materials are
not where they are supposed to be.
• Materials Receipt: Materials can be easily
verified as they arrive to the site. The type of
materials received can be known easily and
verify if the right quantities were received.
RFID ADVANTAGES OVER BARCODES
• No line of sight required for reading
• Multiple items can be read with a single scan
• Each tag can carry a lot of data (read/write)
• Individual items identified and not just the
category
• Passive tags have a virtually unlimited lifetime
• Active tags can be read from great distances
• Can be combined with barcode technology
 ISSUING MATERIAL
• Issues can be divided into
– Issues to consuming departments
– Issues to outside suppliers for processing or conversion.
• Issuing on site does not happen in the case of all construction
materials.
• In the case of sand or aggregate, the materials are consumed as
and when required corresponding to the progress of the project.
• For other materials, issues are based on production programs.
• Based on this and the bill of materials, work orders are printed,
listing for each material, quantity to be issued against each
component requiring that material. This automatically controls
consumption.
THANK YOU!