Chemical Inventory Management System

This is the feasibility study of chemical inventory management system software. Detailed procedures of chemical inventory management system software and necessary documentations for receiving of stores, storing, consumption and accounting contained in this procedure have been drawn up on the basis of existing practice. We sale e all types Garment ERP software  in cheapest price. E.g. Computerized Inventory Control System Pdf ManualBilling and Inventory Management Software, Chemical Management System, All ERP.  For any queries, please Contact Us.

Function of Chemical Inventory Management System

Functions of Chemical Stores management system software and for which Departmental Heads is accountable are broadly as under:

  • To receive and issue stock and to maintain records of stock receiving, issuing and balancing in both quantity and value,
  • To keep stock in proper condition,
  • To carry out periodical physical verification of stores and reconcile with the book balances,
  • To ensure proper segregation of high value items,
  • To ensure optimum inventory level is maintained and informed to the Merchandising Department and Commercial Department for making fresh supplies in a timely manner,
  • To carry out such other activity as would be necessary for proper management of stores.

Raising of Purchase Requisition (PR) for procuring items for Chemical Store/ Re-order level

  • Based on the closing balance of the store items and their volume of usage, Chemical Store will go for raising requisition. The following procedures are followed in this connection.
  • Information about current stock shall also be informed through a report, the requirement of items is raised by the Manager through e-mail, to the sellers asking for price quotation.
  • Commercial Department negotiates the price and selects the supplier and e-mail these to Chemical Store for raising Purchase Requisition (PR).In case of Import, PD forwards the quotation raised by foreign suppliers to the Chemical Store.
  • PR is signed by requesting person, Manager and is forwarded to BOD for approval.
  • Then Chemical Store forwards PR to Purchasing Department (PD) along with the e-mailed copy regarding fixation of price and selection of supplier by PD.
  • The Commercial department also inform the Auto C&F agent about the estimated date of arrival. The C&F agent release the items from the port & sends the same to factory gate

Keeping of Lead Time Consumption

  • In case of import, lead time consumption shall be maintained. For that a standard lead time for several items should be pre-set based on the consumption pattern etc.
  • A  re-order level is also determined based on the prior experience for the respective items.

Procedure for receiving stores

  • Upon arrival at the factory gate, Security Guard counts the goods and after necessary documentation passes the goods to the Chemical Store.
  • Chemical Store re-counts goods and quality is also checked. Chemical Store matches the attributes of the goods with the same mentioned in Delivery Challan, Bill, Invoice and PO. Delivery Challan is also sealed as Received.
  • In case of Local Purchase, a copy of Delivery Challan is signed and sealed by representative of Chemical Store and sent back to the supplier as a token of acknowledgement.
  • Original copies of these documents are forwarded to Finance Dept. and one photocopied copy is kept at the Chemical Store.
  • Chemical Store may be informed prior to arrival of the items.
  • Sometimes, Chemical Store has to collect very insignificant amount of stores by itself on emergency basis as loan from the suppliers.

Inspection Procedure

  • Items procured for are inspected on test basis while receiving at the Chemical Stores. MRR is done in the in-house laboratory.
  • If testing result is satisfactory, then Delivery Challan will be sent to Finance Dept. and should be sealed as Inspected.
  • During the inspection, if any items are found not in accordance with the Delivery Challan, in terms of quantity or quality, then these items will not be received unless the dispute is settled or decision in this regard is obtained from higher authority (Departmental Heads)
  • A photocopy of these documents is maintained in the Chemical Store.

Issuing Procedure

  • Dying department prepares a recipe sheet which is actually the requisition sheet to the chemical inventory management system.
  • Information like Style NO., Operator‘s name, Machine no., Shift, standard time and quantity of unwashed garments should be mentioned on the recipe slip.
  • The requisition slip is signed by the Operator and Supervisor of the Floor.
  • Based on that slip total requisitioned quantity of chemicals is issued several times.
  • If the total requisitioned quantities of chemicals are issued entirely, then the slip is signed by the SManager Plant and marked as OK. Requisition should be signed by  Manager production before commencing delivery against such requisition.
  • At the end of the day, all the requisitions under which all the chemicals are issued, will be entered into a excel sheet to track the issue of chemicals.

Stock Keeping system for chemical stores

  • Chemical Items are kept in drums and packets as considered necessary for the items to reduce the risk of evaporation and others.
  • Racks of store department are set up in a way that enables easy movement of stock.
  • Separate number for each rack and shelf is mentioned physically on the rack.
  • Items procured for different styles are kept in a separate place.

Normal Loss-recommended procedure

  • There may be some chemical stores items which are subject to normal loss due to evaporation, handling etc. A standard shall be set up to determine the percentage of normal loss.
  • Efficiency of usage of various chemical stores should be checked on regular basis compared to standard percentage to determine any abnormal loss.
  • At times, the standard should be reviewed to bring any change in the standard, if require

Inventory Auto report

  • At the end of the day, a report containing details of all issue during the day, is printed out from the computer.
  • And all the recipe sheets against which stores were issued during the day is attached with the report. The report is signed by preparer and approved by Manager and is kept serially.

Daily Chemical Consumption Report

  • Daily consumption of various chemical is prepared in excel sheet and be printed out at the end of the day.
  • The report is cross checked with reference to all the requisition slips against which chemical items were issued during the day.
  • The report is signed by preparer, checked by anyone other than preparer and finally by Manager.
  • The report is kept in a file serially attaching all the requisition slips for the respective day.

Safety Measure

  • For safety, sufficient fire extinguisher and others are in place.
  • CC TV Camera is well located to monitor the activities of Chemical Store.

Physical Verification of Stores

To ensure accuracy of quantitative book balances, physical verification of stores is essential. Physical verification of stores saves auto  from incurring losses arising from theft, pilferage, obsolescence, misappropri­ation etc.

Periodical chemical inventory management system:

All stocks at the Stores Department are checked physically at least once a year, preferably at the end of the year. The Audit Officer who will be overall in charge of stock taking may decide to check the stock at any time during the year, if he considers it convenient and more appropriate. Before commencement, the Audit Officer should prepare a program of stock taking, allocate exact duties to his staff members in this respect, send a circular notifying them that stock records are made up to date and that during the stock taking no stores shall be issued.

Before commencing the physical verification of stores, the following preliminary work is essential:

  • Chemical inventory management system Sheet should be prepared at every store in order of rack and location mentioning the name, classi­fication, code number, etc.
  • All stores must ensure that stocks are so arranged that they can be checked in the shortest possible time.
  • Both Stores and Stores Accounting Section should ensure that stock records are up to date.
  • Program should be prepared by the Audit Department for stock taking, allocating the exact duties to the staff members. Specific person should also be deputed from the Stores for identification of items.
    • To ensure smooth and efficient stock taking certain measures are suggested below:
  • Each page of chemical inventory management system Sheet must be signed by the checking persons as well as the members of store staff assisting in checking.
  • Overwriting or erasing should be avoided and, if any, must be initiated.
  • Checking should be well coordinated and done systematically so that responsibility for each item can be placed on individual stock taker when necessary.
  • While checking, if any item is detected which does not appear on the list, then its name, quantity, condition etc. must be noted.
  • An effective marking of items physically checked should be arranged to avoid:
    • Counting of items twice
    • Omission of items
  • During checking, if any item looks obsolete or deteriorated, a note to that effect shall be made.
  • The Inventory Sheet should be checked against the Stores Ledger and Bin Card and discrepancies looked into. As soon as, it is convenient, the completed chemical inventory management system Sheets must be handed over to the stock taking authority.

Non-routine Physical Verification

  • Without year end Physical Verification of Stock, there is no obligation of the Chemical Stores to take physical verification at times.
  • But still Chemical Store may wilfully carry on physical verification of general items on weekly basis. For the verification, they can select ten valuable items at random. Other than that, sometimes a team lead by Manager- Main Store goes for surprise physical verification of Chemical Store. And the result of which is documented and forwarded to Head of Sourcing.

Reporting of Obsolete Items

If any store items which is identified at the store during physical verification or any time as obsolete should be reported to the Manager to take decision about such items. As this has a financial impact, there should be a pre-set clear and complete reporting procedure of chemical inventory management system.

Engr. Kh. Mashiur Rahman, Garments Auto Machine Technologist, Web:, Email:, Cell: +88 017 92 52 53 54