Supply Chain Manager Responsibilities in Warehouses and Procurement

Supply Chain Manager Responsibilities in Warehouses and Procurement

🔷 First: Responsibilities in Warehouse Management

1️⃣ Controlling Policies and Procedures

• Establishing warehouse policies (receiving, issuing, inventory, returns)
• Approving the Warehouse Document Cycle
• Determining storage methods (FIFO, LIFO, FEFO)

2️⃣ Supervision and Control

• Regularly monitoring inventory balances
• Monitoring item movement (fast/slow/sluggish)

Approving reports:

• Inventory Aging
• Stock Turnover
• Dead Stock

3️⃣ Inventory Management

• Approving inventory plans (periodic/surprise/annual)
• Reviewing inventory discrepancies and making decisions regarding:
• Assigning responsibilities
• Financial adjustments

4️⃣ Managing Damaged and Waste Items

• Determining acceptable waste percentages
• Approving disposal or reuse decisions

5️⃣ Controlling Inventory Levels

• Setting:
• Minimum Stock
• Maximum Stock
• Reorder Point

🔷 Second: Purchasing Management Authority

1️⃣ Procurement Cycle Approval

Review and approve:

• Purchase Requests (PR)
• Requests for Quotation (RFQ)
• Purchase Orders (PO)

2️⃣ Supplier Selection and Evaluation

• Approval of new suppliers
• Supplier evaluation based on:
• Price
• Quality
• On-time delivery

3️⃣ Negotiation

• Negotiation of:
• Prices
• Payment terms
• Delivery dates

4️⃣ Budget Control

• Review and monitor purchasing costs
• Achieving the best value for money

5️⃣ Contract Management

• Approval of contracts with suppliers
• Monitoring compliance with contractual terms

🔷 Third: Shared Authority (Between Warehouses and Purchasing)

1️⃣ Integration between departments:

• Warehouses
• Purchasing
• Finance
• Projects

2️⃣ Planning
Preparation Demand Planning
Participation in:

• S&OP
• Forecasting

3️⃣ Cost Reduction
Reducing:

• Overstock
• Stockout
• Storage Costs

4️⃣ Digital Transformation
Overseeing:
ERP Systems (SAP/Oracle/Odoo)
Improving Processes Using Technology

5️⃣ Decision Making
Strategic decisions such as:
Make or Buy
Centralized vs. Decentralized Purchasing
What does it mean:

• Centralized Purchasing
• Decentralized Purchasing