Packing

The acquisition of goods and supplies can be accomplished in a number of ways. These methods include internal ordering from suppliers, buying locally, producing volume quantities, using on-site packing or shipping and receiving facilities, and using third party distribution channels. Procurement methods include contract purchasing, vending machines, direct ordering from suppliers, wholesaler/ distributor relationships, and retailer relationships. If the inventory reaches a certain level and requires additional storage capacity, additional on-site packing or shipping capabilities are required.

Inventory control begins with understanding the type of products being purchased and where they will be packed. In the past, goods were simply stored in standard boxes at warehouses or depots. Recently, manufacturers have begun utilizing specialized packaging equipment and materials such as polystyrene or packing peanuts to help reduce product handling costs while increasing product effectiveness. Some companies use more than one method to enhance efficiency and productivity.

In traditional packing, objects are placed in containers and loose fill peanuts are used to cover and cushion the product during shipping. This method of packaging allows for the product to be damaged while in transit, but not while it is in storage. When it comes to shipping, goods are usually stacked on pallets, which are then slid onto the trucks. Loose fill peanuts to prevent damage to the goods during transport and while in storage. A company must consider all the variables when moving merchandise to and from the warehouse.