Wuxi Nickel Alloy New Material Technology Co., Ltd Quality Control

Warehouse Management Procedures

I. Purpose

In order to standardize the inbound and outbound management of finished specialty alloy steel strips, ensure the accuracy of inventory data, minimize material loss, and improve material utilization efficiency, these procedures are hereby established.

II. Scope of Application

These procedures apply to the inbound and outbound management of all finished products of every grade, including normal finished goods, returned items, and the periodic clearance of inactive stock.

III. Responsibilities

1. Warehouse Administrator: Responsible for daily inbound/outbound operations and record-keeping for finished goods.

2. Quality Department: Responsible for inspecting and approving finished goods, and issuing certificates of conformity.

3. Finance Department: Responsible for overseeing the accuracy of inventory accounts and participating in stock-taking.

4. Production Department: Responsible for producing conforming finished goods, completing inbound forms, and assisting the warehouse administrator with sorting and clearing inactive and returned items.

5. Sales Department: Responsible for coordinating outbound shipments with the warehouse administrator and communicating with customers regarding returns.

IV. Management of Normal Finished-Goods Inbound & Outbound

1. Inbound Process
   1.1 Inspection & Approval: Finished specialty alloy steel strips produced by the Production Department must pass Quality Department inspection before an inbound form may be issued and moved to the staging area. Each pallet must bear the corresponding salesperson’s label.
   1.2 Inbound Registration: The Warehouse Administrator verifies that the actual quantity matches the inbound form. Once confirmed, the administrator records the details in the system ledger and places the pallets into the designated storage zones according to the salesperson’s label.
   1.3 Inventory Update: The Warehouse Administrator updates the inventory ledger in real time to ensure that the system data matches the physical stock.

2. Outbound Process
   2.1 Outbound Request: The Sales Department completes an outbound request form based on the customer’s order and submits it to the Warehouse Administrator.
   2.2 Shipping Preparation: The Warehouse Administrator verifies stock availability against the request. If sufficient, the forklift operator picks, packs, and moves goods to the shipping area. If stock is insufficient, the administrator promptly consults the salesperson to adjust the order.
   2.3 Outbound Registration: Upon shipment, the Warehouse Administrator records outbound details in the system ledger and broadcasts the updated inventory figures to the designated company group.
   2.4 Handover Confirmation: When handing goods over to the customer or carrier, the recipient must sign for confirmation, and the Warehouse Administrator retains all relevant documentation.

V. Management of Returned Goods

1. Receipt of Returns
   1.1 Return Notice: Upon receiving a customer’s return request, the Sales Department notifies the Warehouse Administrator to prepare for receipt and issues a returned-goods list.
   1.2 Quality Inspection: The Quality Department inspects returned items to verify the stated reasons and determine responsibility.
   1.3 Inbound Registration: Conforming returns may be re-entered into inventory; the Warehouse Administrator logs the return details in the system and stores them in the designated area. Non-conforming items follow the defect-handling procedure.

2. Return Handling
   2.1 Responsibility Determination: Based on the Quality Department’s findings, responsibility for the return is assigned. If attributable to our quality, the item follows the defect-handling process and the responsible department or individual is evaluated per the assessment policy. If the customer is responsible, the Sales Department negotiates a resolution.
   2.2 Rework or Disposal: Return items suitable for rework are handed back to Production for reprocessing; irreparable items are scrapped per prescribed procedures.
   2.3 Record-keeping: All return handling outcomes are documented and archived; the Quality Department is responsible for maintaining and updating the ledger.

VI. Management of Inactive Stock

1. Inventory Audit
   1.1 Audit Cycle: A full inventory audit of finished-goods stock is conducted quarterly, ensuring ledger accuracy and identifying inactive items.
   1.2 Analysis & Disposition: Comparing audit data with sales records, items inactive for over three months are listed and submitted to the Sales Department for disposition decisions. Within three working days, the Warehouse Administrator compiles an inactive-stock report for management review.

2. Clearance Process
   2.1 Report Preparation: The Warehouse Administrator prepares an inactive-stock report based on audit results and submits it for management approval.
   2.2 Disposition Decision: Management decides how to handle inactive stock (e.g., discounted sale, reclassification, recycling, or scrapping).
   2.3 Execution: Upon approval, the Warehouse Administrator coordinates with the responsible workshop or individual to execute the disposition within seven working days.
   2.4 Archiving: After disposition, all related approval documents and records are archived.

VII. Supplementary Provisions

1. These procedures take effect on the date of issuance and are interpreted by the Warehouse Management Department.

2. Matters not covered herein shall be handled in accordance with other relevant company regulations.