Warehouse & Store Operations SOP

Warehouse / Store Person

1. Purpose

To define standardized procedures for managing warehouse/store operations, ensuring accurate inventory control, proper material handling, and smooth coordination with procurement, production, and accounts teams.

2. Scope

This SOP applies to all warehouse/store activities including:

• Purchase receipt
• Storage and handling
• Issue of materials
• Inventory tracking
• Documentation and ERP updates

3. Roles & Responsibilities

3.1 Inventory Management

• Maintain accurate stock records in ERP system
• Ensure physical stock matches system stock at all times
• Monitor minimum stock levels and inform purchase team for replenishment
• Conduct periodic stock verification (daily/weekly/monthly)

3.2 Material Receipt (GRN Process)

• Verify materials received against Purchase Order (PO) and Delivery Challan
• Check quantity, quality, and specifications
• Report discrepancies to purchase/quality team immediately
• Prepare Purchase Receipt (PR) in ERP
• Ensure proper labeling and tagging of received items

3.3 Storage & Handling

• Store materials in designated locations (bin/rack system)
• Follow FIFO / FEFO method where applicable
• Ensure proper handling to avoid damage or loss
• Maintain cleanliness and safety in the warehouse

*FIFO - First In, First Out  *FEFO - First-Expired, First-Out

3.4 Material Issue

• Issue materials only against authorized documents:
• Material Request
• Work Order
• Ensure correct quantity and item is issued
• Update issue entries in ERP system immediately
• Maintain proper documentation (issue slips)

3.5 Documentation & ERP Entry

• Maintain all records in ERP:
• PR (Purchase Receipt)
• Material Issue (Stock Entry)
• Stock Transfer
• Ensure real-time data entry (no backdated or delayed entries)
• Maintain physical records where required

3.6 Coordination

• Coordinate with:
• Purchase team for incoming materials
• Production team for material requirements
• Accounts team for invoice verification
• Share daily stock status when required

3.7 Stock Audit & Control

• Participate in internal and external audits
• Identify slow-moving, non-moving, and obsolete stock
• Report stock discrepancies and take corrective actions

3.8 Safety & Compliance

• Follow safety guidelines while handling materials
• Ensure proper stacking and storage to avoid accidents
• Use safety equipment where required
• Comply with company policies and regulatory standards

4. Daily Activities Checklist

• Verify pending PRs
• Check material requests and issue items
• Update ERP entries
• Monitor stock levels
• Maintain cleanliness and organization

5. Weekly Activities

• Physical stock verification (selected items)
• Check slow-moving stock
• Coordinate with purchase team for shortages

6. Monthly Activities

• Full stock audit
• Reconciliation of physical vs ERP stock
• Submit stock report to management

7. Key Performance Indicators (KPIs)

• Stock accuracy (% match between physical & ERP)
• Timely GRN and issue entries
• Inventory turnover ratio
• Reduction in stock discrepancies
• Proper documentation compliance

8. Documents & Records

• Purchase Order (PO)
• Delivery Challan
• Purchase Receipt (PR)
• Material Issue Slip
• Stock Register / ERP Reports

9. Exceptions Handling

• In case of mismatch:
• Inform supervisor immediately
• Do not proceed without approval
• Damaged goods:
• Segregate and label as “Rejected”
• Inform quality team

10. Approval & Review

• SOP Owner: Warehouse Manager
• Reviewed By: Operations Head
• Review Frequency: Annually or as required