Inventory Control

Risks associated with inventory control can be caused by a multitude of factors including the following:
• Inadequate stock takes;
• Inadequate asset registers;
• Poor physical security;
• Poor records of movement;
• Poor controls over purchase and issue;
• No accountability for usage;
• No serialisation of equipment;
• No records maintained of material usage for jobs;
• Poor awareness of instructions prohibiting ‘borrowing’ of tools and equipment;

Your business should have an inventory control system which includes inter alia the following

❑ Expectations of strict compliance with policy conveyed to staff by managers, in particular instructions prohibiting the loan of tools and equipment to staff;
❑ Management scrutiny of requisitions – necessary for purchases/issues to be regularly challenged;
❑ Regular stock takes of tools and equipment – particularly attractive or ‘high ticket’ items;
❑ Results of stock takes reported to supervisors;
❑ No issues of material, tools and equipment made unless valid job number exists;
❑ Attractive tools and equipment engraved with identification numbers;
❑ Reports relating to requisitions be produced daily by the stores system and analysed at regular intervals by line managers;
❑ Scrutiny of reports by managers;
❑ Tools and equipment registers maintained;
❑ Asset list and schedule of plant and equipment checked, certified and amended.