Internship report topic receiving process in raw material at thanh hungcompany limited

LIST OF ABBREVIATIONS if any Chief Production Officer Raw material Works-in-process Finished goods Purchase Order Purchase Requisition MGoods Receipt Note Quality Inspection Report Stock

COMPANY LIMITED

Supervisor: Pham Thi Yen

Student ID: 89618

STUDENT NAME: PHAM MINH PHUONG

CLASS: INTERNATIONAL BUSINESS AND LOGISTICS 1101

INTERNSHIP REPORT

TOPIC RECEIVING PROCESS IN RAW MATERIAL AT THANH HUNG

TABLE OF CONTENTS

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LIST OF ABBREVIATIONS (if any)

Chief Production Officer Raw material

Works-in-process Finished goods Purchase Order Purchase Requisition MGoods Receipt Note Quality Inspection Report

Stock Keeping Unit

Material Handling Equipment

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LIST OF TABLES (if any)

TABLE 1.1: Support Staff as Percent of Total Library Employees - 15

TABLE 2.1: Reliability Results of the Fimal Study ce ceeeeeeseeteeentsees 20

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LIST OF FIGURES

FIGURE 1.1: Support Staff as Percent of Total Library Employees - 17

FIGURE 2.1: Reliability Results of the Final Studìy - ¿2c 2 22222222222 scsss 25

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PREFACE

Internships are one of the best ways for students to gain practical experience It gives the learner the chance to engage directly with the material they have been studying Aside from that, an internship undoubtedly offers the ideal mix of chances

for discovering, acquiring experience, traveling, and practical education These

excursions significantly contribute to the general psychological development of students since they allow students to observe real things beyond their professors’ hypotheses by actually facing and discovering them

This document provides a comprehensive account of my internship experience as a trainee at Thanh Hung Co., Ltd., spanning from September 4 to September 17,

2023 It 1s divided into three main chapters, each of which delves into distinct aspects of my internship journey These chapters offer a synopsis of the essential stages within the warehouse operations, a thorough description of my internship tasks and responsibilities, and a reflecttve analysis of my overall internship

experience

The following chapter provides an in-depth description of Thanh Hung Co., LTD

This consisted of the company's organizational structure, development timeline, and resource pool It also provided an overview of the corporation's main business processes and results Thanks to my instructor and the personnel at the company, it

is simple for me to work with confidence knowing the functioning, practices, hierarchy, and structure of the organization while still giving this internship everything | have

In the concluding chapter, I delve into the intricacies of the Stock Receiving Fabric Raw Material Performance Process at Thanh Hung Company Limited This comprehensive exploration encompasses the technical procedures I've meticulously covered throughout my internship and the real-world experiences I've had during this period

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1 would like to take this opportunity, through this report, to express my sincere gratitude to Mrs Pham Thi Yen, my dedicated instructor Her guidance, support,

and invaluable insights have been instrumental in shaping my understanding and skills throughout the completion of this report She has not only provided essential

knowledge but has also offered constructive advice and helped rectify any errors |

encountered during the report's preparation

As I reflect on my experiences during Internship 2, I look forward to sharing the

knowledge I have gained about the Stock Receiving Fabric Raw Material Process at

Thanh Hung Company Limited It is my hope that this knowledge will contribute to the collective understanding and growth of the organization

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CHAPTER 1: THEORETICAL BACKGROUND

1.1 Theoretical background of receiving process in raw material

LUI Definition of warehouse

Warehouse can be defined as a facility that stores products:

® Raw material (RM)

® Works-in-process (WIP)

e Finished goods (FG)

At and between point-of-origin and point-of-consumption, and provides information

to management on the status, condition, and disposition of items being stored Warehousing can be defined as the temporary storage of goods before their use The

Transportation-Logistics Dictionary defines a distribution centre as "a warehouse of finished goods; also applied to the facility from which wholesale and retail orders

may be filled; a materials warehouse would also be distribution centre for the buyers of its stock

The purpose of the warehouse is to provide :

® A shelter for goods

® A place to operate material handling equipment ( MHE )

¢ Location for SKUs for storage and accessibility

® Proper product flow from inbound to outbound

¢ Lowest total cost of managing inventory

¢ Lowest total cost of operating the warehouse

¢ Highest possible customer service level

1.1.2 Classification of the warehouse based on the type storing goods

1.1.2.1 Raw material (RM)

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® Definition

The definition of a raw material warehouse in logistics is a physical facility or location within the logistics and supply chain management process used for the storage, management, and preservation of raw materials, or components needed for product manufacturing or service provision A raw material warehouse 1s typically where these materials are concentrated and used as needed 1n the production process

or service

® Function

© Raw material storage: provides space to store and preserve production materials This ensures that the material is protected from external factors such as weather, pollution, or deterioration

© Inventory management: tracking inventory of raw materials, including determining available quantities and updating information on incoming and outgoing inventory This helps ensure that there are no shortages or wastage

of ingredients

o Ensuring continuity: Raw material warehouse ensures that there is always enough raw material available to maintain continuous production This helps

avoid interruptions in production due to raw material shortages

© Quality control: In raw material warehouses, materials often have to be quality tested to ensure that the materials are of sufficient quality to be put

into production

o Classification and packaging: The raw material warehouse is also responsible

for classifying and packaging materials in the most convenient way for easy

management and use during the production process This increases efficiency

in finding and retrieving needed materials

© Special handling (Gf required): For special materials, the raw material warehouse can provide special storage and handling conditions to ensure their safety and quality

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© Protection and safety: Raw material storage ensures that raw materials are protected from potentially harmful factors such as the environment, damage

or loss It also ensures the safety of employees working in the warehouse

© Information and reporting: Raw material warehouses provide data and information necessary to monitor, evaluate and report on raw material inventory for management and production planning decisions This

information helps management understand the inventory situation and make

informed decisions

o Distribution for production: The raw material warehouse is responsible for

distributing materials to the production process at the right time and in sufficient quantity to ensure the production process runs smoothly

o Cost Optimization: Raw material warehouse helps optimize costs through effective inventory control and raw material management, ensuring that there 1s no waste or excess inventory

Raw material warehouses play an important role in the production process and supply chain management, ensuring that necessary materials are available when needed and meet the requirements of the production or service process

1.1.2.2 Works-in-process ( WIP )

¢ Definition

This is the temporary storage of products and finished products that are in the

production process and are not yet completed The WIP warehouse contains products in the stage between raw materials and the final finished product

® Function

© Storing products in production: WIP warehouse stores products and finished products in the middle of the production process, from the time they are

transferred from the raw material warehouse until they are completed This

helps maintain continuity in the production process

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© Control the production process: WIP warehouse allows businesses to control the production process, track production steps and ensure that every step is

done on time and according to plan

o Identify shortages and errors: When missing or defective products are discovered during production, the WIP warehouse helps identify this

problem and take corrective measures before the product leaves the production line

© Forecasting and inventory management: The number of products in WIP warehouse can help businesses predict lead times and manage inventory effectively, ensuring that products will be ready as planned

WIP warehouses are often located in production areas or near production lines to facilitate moving products between different stages in the production process 1.1.2.3 Finished goods (FG)

¢ Definiton

Finished Goods warehouse, in the field of manufacturing and inventory

management, is a place to store products that are finished and ready to be delivered

to customers or distributed to the market This is an important part of the manufacturing and distribution process, helping to ensure that the product has passed the manufacturing and quality control stages and meets customer needs

® Function

© Finished product storage: 1s the place to store finished products This includes storing products safely and conveniently until they are ready for delivery to customers or distribution to the market

© Quality control: Finished Goods warehouses are often used to double-check the quality of products Before products leave the warehouse for delivery to customers, they often undergo final inspection to ensure that they meet the

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required standards and quality This ensures that customers receive high quality products

© Inventory management: Finished Goods warehouse provides information

about the quantity and type of products available in inventory This helps businesses track their inventory and predict market demand Effective inventory management helps avoid shortages or excess goods

© Delivery and distribution: Finished Goods warehouse is the place to provide goods for delivery to customers or distribution partners Products are removed from inventory to satisfy customer orders or for distribution to the market This ensures that products are delivered at the nght time and place 1.2 Related documents

a Purchase Order (PO)

This is a document or contract created by a purchasing organization or individual and sent to a supplier to request the purchase of a specific product or service

The specific content in the purchase order contains :

¢ Name of seller and buyer

® Product name, quantity, unit price, currency

® Delivery time and conditions

¢ Payment conditions, payment time

® Characters of the seller and buyer

The purpose of the purchase order is to specify a clear agreement between the buyer

and the supplier regarding the important elements of the sale transaction It also has legal and financial value, plays an important role in protecting both parties from disputes and helps manage finances and inventory

Purchase orders typically include information such as the names and addresses of both the buyer and supplier, a detailed description of the product or service,

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quantity, price, delivery date, payment terms, and other terms and conditions Other terms and conditions are agreed between the two parties

b, A purchase requisition ( PR )

This document often abbreviated as PR, is a formal request made within an organization to its purchasing or procurement department, seeking the purchase of specific goods or services It serves as the initial step in the procurement process and is typically initiated by employees or departments that require certain items to fulfill their operational needs The purchase requisition outlines essential details, including:

® Item Description: A clear and detailed description of the items or services required, specifying quantities, specifications, and any relevant technical

information

® Purpose: The reason for the purchase, such as replenishing stock,

equipment maintenance, or a new project's requirements

® Budget Information: Information about the budget or cost center that will

bear the expenses associated with the purchase

e Authorization: The names and signatures of individuals authorized to make the purchase request, along with their respective positions or departments

® Delivery Date: The desired or required date by which the requested items

or services should be delivered

e Supplier Preferences: Any preferred suppliers or specific vendor recommendations, if applicable

¢ Approval Workflow: The routing of the requisition for approval, which may involve multiple levels of review, depending on the organization's

procurement process It helps streamline and control the purchasing process within

an organization, ensuring that acquisitions are made efficiently and in accordance with established budgets and procedures

c Goods Receipt Note (GRN)

A Goods Receipt Note (GRN) is a crucial document used in inventory management and logistics to confirm the receipt of goods or materials It serves as an official

record that the goods mentioned in a purchase order have been received in the stated

quantity and condition It 1s a critical part of the procurement and inventory control

process and contains essential information such as:

¢ Supplier Information: The name and details of the supplier or the source of

¢ Descriptions and Quantities: A detailed listing of the received items,

including descriptions, specifications, quantities, and any relevant serial or

Any discrepancies or issues can be documented on the GRN and addressed with the

supplier or the relevant department within the organization

In addition to its role in verifying goods received, the GRN also serves as a reference for accounting and payment processes It helps facilitate the payment of Pham Minh Phuong — IBL1101 Page 9

invoices from suppliers and is an essential document for maintaining accurate

inventory records and financial transactions within the organization

d A Warehouse Receipt

A warehouse receipt is a legal document issued by a warehouse or storage facility to confirm the receipt and storage of specific goods or commodities It serves as proof that the goods have been deposited at the facility and are beimg held there

Warehouse receipts are commonly used in logistics, supply chain management, and

trade finance They typically include essential information such as:

* Warehouse Details: The name, address, and contact information of the warehouse or storage facility issuing the receipt

¢ Receipt Number: A unique identification number assigned to the recerpt for

tracking and reference purposes

© Date of Receipt: The date on which the goods were received and deposited at the warehouse

¢ Description of Goods: Detailed information about the goods stored, including quantity, quality, weight, volume, or other relevant specifications

* Owner/Depositor: The name and contact details of the owner or depositor of

the goods This could be an individual, a company, or another entity

¢ Storage Conditions: Any specific conditions or requirements for storing the goods, such as temperature control or handling instructions

¢ Storage Fees: Information about the fees or charges associated with storing the goods at the warehouse, including rates and payment terms

e Authorized Signatures: Signatures of authorized representatives from both the warehouse and the depositor, confirming the accuracy of the information

provided

Warehouse receipts important for inventory management, as they help keep track of the movement and status of goods within a warehouse

e Quality Inspection Report (QIR)

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A Quality Inspection Report (QIR), also known as an Inspection Report or Quality Control Report, 1s a formal document used in quality management and manufacturing processes It serves as a record of the results of inspections, tests, or evaluations conducted on products, materials, or processes to assess their compliance with established quality standards and specifications It 1s typically created by quality control or quality assurance personnel within an organization and contains essential information such as:

® Identification: Information about the inspected product or material, including its name, part number, batch or lot number, and any relevant specifications

¢ Inspection Details: Specifics about the inspection process, including the date and location of the inspection, the names of inspectors or evaluators, and any relevant equipment or testing methods used

e Acceptance Criteria: The established quality standards, specifications, or criteria against which the inspected item is being assessed This may include dimensions, performance characteristics, safety standards, or other relevant parameters

® Findings and Results: A detailed account of the inspection results,

including observations, measurements, test outcomes, and any identified defects, non-conformities, or deviations from the specified standards

* Corrective Actions: If any issues or non-conformities are identified

during the inspection, the QIR may include recommendations or actions

taken to address these issues This may involve rework, repairs, retesting,

or rejection of non-compliant items

¢ Recommendations: Suggestions for process improvements, preventive actions, or future inspections to maintain or enhance product quality

e Signatures and Approvals: The report typically includes signatures and

approvals from authorized personnel, indicating their acknowledgment

and acceptance of the inspection results

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Quality Inspection Reports play a crucial role in ensuring product quality, compliance with regulatory requirements, and continuous improvement in manufacturing and quality control processes These reports are essential for documenting and tracking the quality of products, identifying areas for

improvement, and providing evidence of quality assurance efforts to customers, regulatory agencies, or internal stakeholders

F Inventory Report

An Inventory Report is a structured document that provides a comprehensive overview of a company's current inventory status, including details about the types, quantities, and conditions of items held in stock Key components typically found in

an Inventory Report include:

© Item Identification: Information about each inventory item, such as its name, description, SKU (Stock Keepimg Unit) number, product code, or any other unique identifier that helps distinguish it from other items

® Quantity on Hand: The report specifies the total quantity of each item currently in stock This includes both the quantity available for sale or use and any items that might be reserved, damaged, or awaiting disposal

® Location: The physical location or storage area of each item within the

organization's facilities This can help streamline the retrieval and management of items as needed

¢ Condition: Details regarding the condition or status of inventory items, such

as whether they are new, used, damaged, obsolete, or in need of repair

® Unit of Measurement: The unit of measurement used to quantify the items, such as pieces, pounds, gallons, or any other appropriate unit for the specific Item

e Value: The total monetary value of the inventory, calculated by multiplying

the quantity of each item by its unit price or cost This value helps assess the financial health of the organization and its assets

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Reorder Point: The minimum quantity of an item that triggers a reorder or

replenishment action This is crucial for maintaining inventory levels and

avoiding stockouts

Last Updated Date: The date on which the inventory report was last updated

or reviewed This information ensures that users are working with the most current data

Inventory Reports are used by businesses of all sizes to manage and optimize their

inventory levels, forecast demand, reduce carrying costs, prevent overstock or stockouts, and make informed purchasing and production decisions They serve as

valuable tools for inventory control, financial planning, and operational efficiency

g Invoice

An invoice is a written or electronic document that serves as a formal request for payment for goods sold or services rendered by a business to a customer or client It typically includes the following key information:

Invoice Header: This section contains essential details about the invoice, such as the invoice number (a unique identifier), the issue date, and, in some cases, the due date by which payment is expected

Seller Information: Information about the seller or service provider, including their name, contact details, and often their business logo

Buyer Information: Information about the buyer or recipient of the goods or

services, tncluding their name, contact details, and, if applicable, their billing

address

Itemized List: A detailed list of the products, goods, or services provided, along with their descriptions, quantities, unit prices, and total amounts for each item This section helps the buyer understand what they are being billed for

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¢ Subtotal: The sum of all individual item amounts, before any taxes or additional charges are applied

e Taxes: Any applicable taxes, such as sales tax, value-added tax (VAT), or goods and services tax (GST), are listed separately, along with the tax

amount

e Additional Charges: Any additional charges, such as shipping fees or

handling fees, are itemized and included in the invoice total

® Invoice Total: The final amount that the buyer is required to pay, which includes the subtotal plus taxes and any additional charges

® Payment Terms: Any specific payment terms or instructions, including the due date and accepted payment methods, may be included

® Payment Instructions: Details on how the buyer should remit payment, including bank account information, payment address, or online payment options

Invoices are vital for both businesses and customers, as they provide a clear record

of financial transactions, aid in accounting and bookkeeping, and serve as legal

documents in case of disputes or audits Additionally, invoices are used for tracking

accounts receivable and managing cash flow Businesses often retain copies of invoices for their records and may provide duplicates to customers upon request within an organization

h Goods Return Note

A Goods Return Note is a written or electronic document initiated by the buyer or customer to inform the seller or supplier about the intention to return purchased goods due to various reasons, such as defects, damages, incorrect Items received, or other issues The good return note typically includes the following key information:

¢ Return Authorization Number: A unique identifier assigned to the return request, enabling the seller to track and manage the return efficiently

¢ Date of Request: The date when the return request was made

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¢ Buyer Information: Details of the buyer, including their name, contact information, and account number (if applicable)

¢ Seller/Supplier Information: Information about the seller or supplier,

including their name, contact details, and return department or address

® Invoice/Order Information: References to the original invoice or purchase order, such as the invoice number, order number, or date of purchase, to identify the transaction

® Description of Returned Items: A list of the items being returned, including

product names, descriptions, quantities, and any unique identifiers (such as serial numbers or SKU codes)

¢ Reason for Return: A bref explanation of the reason for the return, such as defects, damages, incorrect Items, or customer dissatisfaction

® Condition of Returned Items: Information on the condition of the returned goods, including whether they are unused, unopened, or still mn their original packaging

¢ Requested Action: The buyer's request regarding how they would like the return to be resolved, whether they want a replacement, a refund, a repair, or

an exchange

® Return Process Instructions: Any specific instructions provided by the seller regarding the return process, including return shipping arrangements, packaging requirements, and deadlines

e Authorized Personnel: Signatures or approvals from authorized personnel within the seller's organization who have reviewed and approved the return

request

The Goods Return Note helps facilitate the return process, ensuring that both the buyer and seller have a clear understanding of the return conditions and responsibilities It provides a basis for processing returns efficiently, resolving issues, and updating inventory records Additionally, the GRN is an important document for record-keeping, audit purposes, and maintaining customer satisfaction

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1.3 Theoretical process of receiving in raw material

Before the raw materials arrive, the procurement or purchasing department will generate purchase orders based on the company's production or inventory needs

These purchase orders specify the type and quantity of raw materials required Step 2: Create a Warehouse Receipt Request

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The receiving area or dock is prepared to receive the incoming raw materials This

includes ensuring that there is enough space, equipment, and personnel available to handle the incoming shipments

Step 3: Shipment Arrival

When the shipment of raw materials arrives at the recerving dock, it 1s compared to the corresponding purchase order to ensure that the correct materials have been

delivered

Step 4: Unloading and Inspection

The raw materials are unloaded from the delivery vehicle and inspected for any

visible damage or discrepancies between the shipment and the purchase order Any

discrepancies or damages are documented

Step 5: Quantity and Quality Inspection

The quantity of raw materials is counted and compared to the quantity specified in the purchase order Additionally, a quality inspection 1s performed to ensure that the materials meet the company's quality standards This may involve visual checks, measurements, or other quality tests

Step 6: Acceptance or Rejection

Based on the inspection results, the materials are either accepted for use or rejected Rejected materials are typically returned to the supplier or held separately for further evaluation or disposition

Step 7: Documentation

All relevant information, including receiving reports, inspection records, and any

discrepancies or issues, is documented This documentation is important for

traceability, quality control, and inventory management

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Step 8: Inventory Update

If the materials are accepted, they are added to the company's inventory records, and the inventory system is updated to reflect the new stock This ensures accurate tracking of available raw materials

Step 9: Storage

The accepted raw materials are properly stored in designated storage areas within

the warehouse or production facility This includes ensuring that materials are

stored in accordance with their specific storage requirements, such as temperature

Regular reports are generated to track and analyze receiving data, including the

quantity and quality of raw materials received, any issues or discrepancies, and the status of inventory levels

The receiving process for raw materials is a critical part of ensuring that a manufacturing company has the necessary inputs to maintain production and

product quality Proper documentation and communication are essential for effective inventory management and quality control

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