The ISO 9001 inventory management process supports the more scientific process of arranging and operating the business. In fact, many businesses worldwide have applied the process and achieved meaningful results. What are the details of the inventory management process adopting ISO standards? Join Viindoo to find out in this article!
What is ISO?
ISO stands for International Organization for Standardization - an independent, non-governmental International Organization for Standardization, headquartered in Geneva, Switzerland. Currently, there are more than 164 countries worldwide that are standard members of ISO.
The organization focuses on the development of two areas which are commerce and manufacturing. Members of the organization jointly share knowledge and develop this common knowledge into international standards. This then becomes an international integration solution for countries.
ISO stands for International Organization for Standardization
Once developed, ISO standards will be standardized internationally and applied in most countries. Manufactured products must meet all quality requirements in accordance with ISO standards. This allows every organization to apply the standard to improve quality and develop sustainably.
Thus, consumers feel more secure using strictly ISO standards complying products. Up to now, ISO has issued more than 22,919 ISO standards and related documents across a wide range of industries, from agriculture to industrial manufacturing, to health services, and food. In general, the ISO inventory management process plays a key role in business operations.
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Classification of the ISO 9001 inventory management processes
The inventory management adopting ISO standards process is quite detailed with many diverse types. If the process is not in proper compliance, the business will not achieve the best results. Therefore, the following classifications will help businesses choose the right method for business conditions. There are two criteria for the process:
By stage of the manufacturing process
The manufacturing process takes place in various stages. This means that businesses need to build all kinds of warehouses for all stages. Based on this characteristic, there are types of inventory management processes according to the ISO, which is:
- Raw materials management process: Raw materials management is the primary step of the manufacturing process. Materials have distinctive characteristics and preservation requirements. This requires different conditions for arrangement and storage according to different criteria.
- Work-in-process management process: At this stage, raw materials will be imported into the warehouse for manufacturing. The input material amount will be different depending on the actual situation. Here, ISO compliance processes will help ensure the best productivity and quality for manufacturing activities.
- Finished goods management process: The manufactured product will next go to the warehouse for the finished product. This is where the product "temporarily resides" before being delivered to customers.
- Maintenance, repair, and overhaul management process: The warehouse at this stage is the last location. Moreover, this process plays an important role in the inventory management chain. Adopting ISO standards on inventory management will help businesses in inventory counting to ensure uninterrupted manufacturing and distribution.
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By type of business
The ISO standard inventory management process follows the most general principle. In practice, this process may not be suitable for some particular businesses. Therefore, classification and flexible application are essential for different business types with different characteristics. This will help businesses maximize their capacity and efficiency.
Flexibly applying the ISO inventory management process is necessary
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Standard ISO 9001 inventory management process
The following is the basic ISO standard inventory management process for manufacturing units.
The process of importing goods and raw materials
According to ISO 9001, warehousing is the most important and familiar step in the management of goods and materials. Basically, the management of the warehousing process will include the following steps:
- Step 1: Sign approval and notify the plan to import raw materials with the managers
The process will take place when there is a need for raw materials. At this time, the strategic or accounting department will make an order to purchase additional goods/ raw materials. Then, they will submit to the leader for approval and notify relevant departments. The manager will follow up, deliver the goods, as well as ensure the proper time and process.
- Step 2: Check the quantity and quality of goods and compare them with the actual condition
When receiving the notice for warehouse receipt, the manager must conduct a comparison of the actual quantity. This step is to determine the situation of running out or a shortage of any product. The remaining product in the warehouse will be prioritized for manufacturing to avoid waste.
The warehouse administrator will stamp and add information to the system when receiving the correct quantity of goods into the warehouse. This is the basic step for a smooth follow-up process. When problems with inventory arise, employees need to make a record with the discoverer's confirmation to submit to superiors.
- Step 3: Prepare warehouse receipts and complete related procedures
Products entering the warehouse must meet the requirements and have all necessary relevant documents. Then, the warehouse manager can make a warehouse receipt and send it to the accountant for inspection and accounting.
The process of managing the warehousing of raw materials according to ISO
The process of managing export
Goods export includes 4 groups based on 4 different purposes. These purposes are for sale, manufacture, assemble, or delivery to another location. In general, the process of managing activity is similar with 4 steps:
- Step 1: Receive export requests from departments
Usually, this request comes from the sales department or strategic management department. Based on the given requirements, the warehouse manager will check the validity and perform the authentication.
- Step 2: Check the current inventory
The warehouse manager needs to review all the data of the items corresponding to the requirements. This helps verify the actual item status. Therefore, the warehouse department can guarantee the level of adaptation to the export requirements of the goods.
- Step 3: Make warehouse delivery notes and business invoices in accordance with regulations
When the goods meet the requirements, the warehouse manager needs to create a delivery note with the business invoice. The document will be printed in multiple copies for all related departments. For small and medium units, there are usually only 2 copies needed.
- Step 4: Export goods and update the latest information
According to the ISO standard for inventory management process, the export quantity is the same as the quantity in the prepared documents. The warehouse staff will next update the exported data in the system. This helps the relevant departments better monitor the new status of the product codes for suitable manufacturing strategy.
Inventory management process in complying with ISO standards
Benefits of applying the ISO 9001 inventory management process
Although ISO is an international standard, there are still many businesses choosing to ignore the ISO 9001 inventory management process. In fact, without the process, the warehouse system would be loosely controlled and risks can easily occur. In fact, professional inventory management generates huge benefits for businesses.
- The application of ISO helps the warehouse operation process go smoothly and thoroughly.
- The inventory management process adopting the ISO 9001 standard makes it easier to monitor inventory status.
- Businesses can rest assured to focus on other more critical issues.
- The responsibility and professionalism of employees are promoted.
- The standard supports shortening operating time.
- Businesses can gain the trust of customers and partners.
Inventory management according to ISO standards
Above is all information about the ISO 9001 inventory management process. The process actually brings a lot of benefits to businesses with the warehouse operation. Since then, activities of the business can go more smoothly, simply, and efficiently. Enterprises could reference Inventory management such as Viindoo Inventory to enhance the efficiency of inventory & supply chain management.