As far back as 2010 we featured a guest author  who is the principal of EIM, Effective Inventory Management. He had done a guest writing at that time on Promotions. Please visit his website because the constant struggle for correct inventory is never ending to our readers.

Improve your data accuracy if you don’t know how much you have or where product is, it’s as if it doesn’t exist.

Now to borrow from Jon, who wrote this article in 2012 on his website titled: How Accurate  Are Your On-Hand Quantities?  In his article Jon talks about where these counts go wayward. Some of these can be caused by:

  1. “Sloppy” material handling procedures - see Johns article for the details.
  2. Buyers forced to overstock in order to maintain your desired level of customer service.
  3. Products are reordered at the wrong time.

I remember his rule: it is imperative that the on-hand quantities of products in your computer system agree with what is on the shelf.   Establish a rule that cannot be broken: NO MATERIAL LEAVES A WAREHOUSE WITHOUT THE PROPER PAPERWORK! 

This policy is essential for effective inventory management.  After all, does your bank allow employees to take samples out of the vault without proper paperwork?  What is the difference between the bank’s inventory and yours?

Although its very time consuming and requires a lot of discipline Jon talks about policies and procedures for effective inventory control.  So here is a short list if inventory events that you need Policy for:

  • Normal stock receipts
  • Unexpected stock receipts
  • Requisitions
  • Emergency requisitions
  • Sales orders to be delivered
  • Sales orders for non-stock
  • Cash sales
  • Direct shipment
  • Bin-to-bin transfers
  • Returns: stock material
  • Returns: non-stock material
  • Returns: damaged material
  • Returns to the supplier
  • Scrapping and writing-off stock

As all of you food guys know when you check counts they are rarely accurate. That is one of the main reasons why we strongly suggest cycle counting to check your inventory. Sadly if the counts are wrong decisions made by salespeople and management are skewed or at best mis-informed.   Exhausting as it may be to make them, without these policies for stock movement on hand balances will never match what the computer thinks.


Again please give credit to Jon for what he has to say and please visit his website for more valuable data.



Issue 646 - Checking those Resolutions.

Last year we were early to declare our New Years Resolutions 2018. A lot has changed over in 2018, but I believe it's not quite too late to make sure we have addressed some of those resolutions.

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