A basic tool for inventory control is the stock card and bin card, both of which record any movement of physical quantities for each SKU and are stored next to the item in the warehouse, while the inventory ledger tracks inventory transactions in a central location.
All goods received in the storage facility should be accompanied with a Waybill or a Delivery note describing the supplies details and its origin. If the supplier or transporter does not provide the waybill or a delivery note, the storekeeper should fill in a goods received note. A copy of the signed document should be retained by both the recipient and person delivering the goods.
When coming to control and monitor particular items, consider that stocks follow the Pareto principle, also known as the “80/20 rule”, the “law of the vital few”, or the “principle of factor sparsity”. This principle states that roughly 80% of consequences come from 20% of the causes (the “vital few”), which applied to inventory management is translated to: 80% of the movements are from 20% of the list of items. Identifying this 20% of “high-turn” items is vital for an optimal inventory management.
When general physical inventory happens, the warehouse should be locked down during the whole inventory period. Depending on the The overall size of the warehouse and the number quantity of items stored , this period can take from 1 day to 1 weekwithin it will determine the length of time required to complete a full count. A small facility could be completed in a just a few hours, while a large facility might take several days. Humanitarian agencies should consider their storage setups when planning a stock count system. In such events, it is recommended to inform in advance to all potential requesters, so they can place forward their requests. In order to mitigate the chance of human mistakes and bias, it is recommended that two separate teams count the same set of items without any information exchange. In addition, Stock cards can be made unavailable for the counting teams. Inventory sheets, tags or cards can be used for this purpose. Some agencies prefer to have an appointed person to oversee or manage the counting teams. Agencies may also choose to employ the “stock tag” system to facilitate counting.
While on demand or random spot checking may occur as needed, it is strongly advised that a full stock count should be conducted at least once a year, if not more frequently depending on the size of the facility and the overall volume of throughput. The standard accepted best practice for a full stuck count is called “double-blind”, and follows the below steps:
|Double Blind Counting Procedures|
|Inventory Sheet||Stock Tags|
In any case, consider Consider 5-10% of total working hours for a location as a fair time to spend on counting.
The frequency and number of inaccuracies should be regularly monitored. Any stock discrepancy should be reported and analysed analyzed and corrective actions should be taken to reduce the risk of further inaccuracies. In case that the real amount is less than the amount in the records, a loss report should be completed.