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CHAPTER 4 The Procurement Process 221
7
CHAPTER
CHAPTER

Inventory and Warehouse

Management Processes

LEARNING OBJECTIVES
After completing this chapter you will be able to:
1. Discuss the four goods movements associated with inventory
management.
2. Describe the organizational levels in warehouse management.
3. Analyze the master data associated with warehouse management.

4. Identify and explain the key steps in the warehouse manage-
ment processes.
5. Demonstrate how inventory and warehouse management pro-
cesses are integrated with other processes.
®
6. Effectively use SAP ERP to execute the key steps in the ware-
house management process.
7. Extract and analyze meaningful information about the ware-
house management process utilizing SAP ERP.

n Chapter 1 we introduced inventory and warehouse management
(IWM) processes, which are concerned with the storage and movement of
Imaterials within an organization. We indicated that IWM is closely related
to the procurement, fulfi llment, and production processes. Then, in Chapter 4
we introduced the underlying activity in inventory management (IM),
namely, goods movement. Specifi cally, we introduced the four goods
movements—goods receipt, goods issue, stock transfer, and transfer posting—
as well as specifi c movement types. In our discussion of material movement
in the preceding chapters, we focused on the simpler processes associated
with IM. In addition, we explained that warehouse management (WM)
involves processes that enable companies to manage materials more
effectively using sophisticated techniques. Business Processes in Practice 7.1
illustrates how a large global enterprise, Steelcase, Inc., uses inventory and
warehouse management to effi ciently move materials across various facilities.

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