Back Room

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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CIOP is an end-to-end supply chain training and certification program designed and developed by supply chain practitioners and consultants. The syllabus was developed in consultation with the industry, which led to Inventory Management Body of Knowledge (IMBoK v3.0). Most of the class discussions you will hear cannot be found in any textbook rather these are all the original contribution from the developers of CIOP. For example, think about the types of inventories such as raw material, work-in-process and finished goods. Out of these three, WIP is the most difficult to sell in the market and that is one of the reasons, WIP should be controlled well. The company has a built-in capability and capacity to sell finished goods, which is their business. The second easy to sell are the raw materials as you know the suppliers, who may either buy-back or at least guide you. But in case of WIP, this is custom manufactured to suit your manufacturing processes and may not well fit any other organisation, hence you may have to sell it as a scrap.


At the heart of any organization is a back room that is filled with shelves, filing cabinets, and other storage spaces. In fact, the entire premise of the organization rests on the ability to efficiently utilize existing office and 

warehouse space for the purpose of maintaining product quality, reducing operating costs, and more. Thus, it is crucially important to optimize the use of space available and to plan for the future as far as waste, deterioration, and increased inventory are concerned.

The term "back room" is often used in conjunction with production, but it can also refer to the warehouse or other interior areas used for administrative functions such as order processing, stock control, billing, and other similar functions. In order to effectively utilize existing back rooms, a number of important issues must be addressed. First, it is important to determine what items are produced and stored in these areas, and what tasks can be completed in these rooms. Second, the capacity needed must be determined, including staffing levels and available equipment.

With inventory and production occur in both the back rooms and warehouse, it is essential to establish adequate transportation methods to move goods between locations, and to keep goods in good condition to ensure their viability for production and shipment. Proper planning and allocation of space require an assessment of where new supplies will come from, and where they will go to remain dormant until utilized. Finally, waste management must be integrated into the supply chain management process, particularly as the company grows. This involves both eliminating waste through efficient collection and disposition, and ensuring that excess production is not stored or churned away because of obsolete or misaligned manufacturing processes.

Certified Inventory Optimization Professional 

CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security. 

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CIOP Knowledge Series

One-Minute Supply Chain Facts

The most recent video is available here. To access the past videos in the One-Minute Supply Chain Facts Series, please click the playlist icon located on the Top-Right of the video.





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