STEELMAN: Procurement and Inventory

The Inventory Module of STEELMAN provides a complete record of receipts, costs, allocations, issues and balance of each stock keeping unit (SKU) at each warehouse. The Procurement Module assesses the future need for the supply of goods and services, makes procurement recommendations, and prepares, issues and tracks purchase orders. Because the procurement and inventory modules are so closely related, this product description is directed to their joint operation.

The modules are designed to ensure a reliable supply of technical materials, maintenance materials, spare parts, and overhead materials from qualified vendors, while minimizing the level of inventory held and the effort required to manage the supply of materials. The modules also monitor and report the consumption of materials by the plants, departments and cost centers, and work to ensure proper authorizations are attained.

Procurement/Inventory: SPECIAL FEATURES

• An unlimited number of SKU's, categories, warehouses and "Releasing Places" (These are not considered to be warehouses as the value of the material held in these stores is charged to a cost centre as an expense.) can be maintained.
• The system maintains a detailed record of each approved vendor, including their full name, address for orders, address for payment, category of materials supplied, approved terms and conditions of business, normal shipping method, and details of any blanket orders which may exist.
• The system maintains a detailed description of each approved stock keeping unit.
• The system maintains a record of all procurement activity by vendor and item. The system uses blanket orders (contracts for future contracts), purchase orders and service contracts to make commitments to suppliers.
• The system maintains a record of all inventory transactions for each SKU (and, where appropriate, for each serial numbered item or lot) at each warehouse. Transactions include requisitions, allocations, purchase orders, receipts, transfers, issues, returns and adjustments to either quantities or values.
• The system maintains a record of the inventory quantity on-hand, allocated and on-order at each warehouse. A warehouse designated as the primary stock location for an item replenishes its stock through purchase orders to vendors, other warehouses replenish their inventory by transfer from the primary warehouse. Inventory asset quantities and values are recorded for primary and secondary warehouses, and expensed to cost centers or work orders when material is released. The system also supports tertiary warehouses for personal-use issues and releasing places.
• Based on parameters set by users, the system recognizes the need for potential material procurement or transfer action and make purchasing or transfer recommendations.
• Access to the system to generate or approve transactions or to extract information is based on the identification of appropriately authorized individuals and secure passwords. The approvals required for each type and level of transaction are stored in a look-up table.
• The system allows users to select the method of inventory valuation and material costing using FIFO, LIFO, weighted average, latest unit costs and standard unit costs. Different cost bases may be selected for different purposes.
• The system records the storage location of inventory at a warehouse by warehouse bin code.
• Reusable packaging material such as pallets and containers can be tracked by the system.
• When material is declared surplus it is to be disposed of an removed from the inventory. Possible dispositions are: by write-off, conversion, sale to employee or arms-length sale. Proper authorization is required.
• The system is capable of operating without paper forms to support internal inventory transactions (material receipts, requisitions, issues, returns to stock, returns to vendors, transfers and adjustments).
• The Inventory Module provides support for physical inventory taking by printing pre-numbered tags on which to record the counted inventory.
• The system tracks vendor delivery performance in terms of days early or days late, product quality deficiencies as a percentage of the quantity of an item received, and the number and type of documentation errors as reported at receiving, and provides reports to support further analysis of vendor performance.