Standard Operating Procedure (SOP) for Store & Inventory
1. Purpose
To ensure the systematic handling of materials, covering the full cycle from receipt to delivery, including sales order fulfillment. This SOP enables accurate inventory control, smooth production support, and timely dispatch of goods to customers.
2. Scope
This procedure applies to the receipt, storage, issuance, stock reconciliation, sales order processing, and delivery of materials across all warehouses (raw materials, finished goods, spare parts).
3. Responsibilities
| Role | Key Responsibilities |
| Storekeeper | Receive, store, and issue materials; update stock in ERP; maintain records. |
| Inventory Controller | Conduct stock counts, reconcile physical vs. system stock, report variances. |
| Sales Coordinator | Process sales orders, prepare delivery documents, and coordinate dispatch. |
| Procurement Officer | Raise purchase orders, track deliveries, and coordinate with the store. |
| QC Officer | Inspect received materials and approve/reject before storage. |
4. Key Definitions
- GRN – Goods Receipt Note
- MRN – Material Requisition Note
- SO – Sales Order
- DC – Delivery Challan
- FIFO – First In First Out
5. Procedure
5.1. Purchase Process – Material Inward Flow
Step 1: Purchase Order Processing
- Purchase Department issues a PO in ERP based on material requirement.
- PO is shared with the supplier/vendor.
Step 2: Material Receipt
- Materials are received at the store gate along with the supplier invoice and delivery note.
- Store team checks quantity and condition of materials against PO.
- If QC is required, a sample is sent for quality check before accepting into inventory.
Step 3: Goods Receipt Note (GRN)
- Once verified, the store team prepares a GRN in ERP.
- Stock is updated in ERP as “available.”
Step 4: Storage
- Materials are stored in their designated bins/shelves with labels.
- FIFO or FEFO method is followed as per material type.
5.2. Sales Process – Material Outward Flow
Step 1: Sales Order Processing
- Sales department creates a Sales Order (SO) in ERP.
- Based on the order, a picking list is generated and sent to the store.
Step 2: Order Picking
- Store staff picks the ordered items from inventory.
- Items are verified against the picking list and sales order.
Step 3: Packing and Preparation for Dispatch
- Goods are packed securely, labeled, and documented.
- Any special instructions (e.g., fragile, urgent delivery) are marked.
Step 4: Delivery Challan & Invoice Generation
- Delivery Challan (DC) and Sales Invoice are prepared in ERP.
- Details such as vehicle number, driver name, and delivery location are recorded.
- Goods are handed over to the logistics team or external transporter.
Step 5: Dispatch & Confirmation
- Goods are dispatched with DC and invoice copies.
- Customer acknowledgment (signed delivery copy) is collected and filed.
- ERP is updated with dispatch and delivery confirmation.
6. Documentation & Records
- Goods Receipt Notes
- Material Requisition Notes
- Sales Orders
- Delivery Challans
- Stock Transfer Vouchers
7. Safety & Housekeeping
- Keep path and exits clear.
- Use safety gear during material handling.
- Stack goods securely to prevent accidents.
- Perform periodic pest control and hygiene checks.
8. Compliance & Review
- This SOP will be reviewed every 6 months.
- Any deviations must be reported and corrected within 3 working days.
Approvals:
Approved By: [Factory Manager]] | Date: [DD/MM/YYYY]
Prepared By: [Name/Title] | Date: [DD/MM/YYYY]