Physical Controls
How do we ensure minimal damage to inventory in the warehouse?
Ensure that the warehouse is clean and maintained with inventory neatly packed as well as well as the area itself being dry and in a controlled temperature if applicable
Who oversees the inventory count and ensures all procedures have been complied with?
Count Controller
What is the purpose of an inventory tag?
Ensures an item was only counted once.
Name 2 things that should NOT be done/ permitted during an inventory count
Despatch of inventory during the count
Counters leaving without proper dismissal
Which physical controls for inventory would ensure proper safeguarding?
Minimum windows to ensure the building is secure
Surveillance cameras
Controlled entry: Biometrics, turnstiles
Minimum entry and exit points
What should be included on the inventory sheet and the way that it is designed?
Should be numerically sequenced.
Include columns for first and second count and discrepancies
Include columns for prices and extensions
Reflect inventory item number, category and location of the inventory
Which type of items should specifically be identified during the count?
Damaged inventory
If required: Slow moving inventory
In which department (sales, buying, despatch etc) would you most likely expect the clerk to not have unauthorised access to the inventory warehouse?
Buying department. Theft can occur
Name 4 ways in which proper planning and preparation for an inventory count can be achieved?
Establish the date and time of the count beforehand.
Method of counting
Staff requirements
Establish who will supervise the count
Preparing the warehouse
Draft the warehouse plan
Identify locations and categories of inventory
Which form has to completed when there has been a discrepancy between recorded inventory and the actual inventory count?
Inventory adjustment form
Name four written instructions that should be given to the counters before the count takes place
Identifying the count teams and their respective responsibilities
Method of counting
Procedures to follow if there are issues during the count
Detailed instructions regarding the date, time and location of the count
Identification of slow moving/ damaged inventory
Name 2 procedures that should be facilitated by the count controller
Walk through the warehouse to ensure all items were counted twice.
Count controller should also examine the countsheets and instruct a recount if there are any discrepancies.
Name 4 procedures that should occur during the inventory count
1.Count staff should be divided into teams of two (1 independent from inventory)
2.All teams should be given a floor plan of the warehouse which indicate inventory locations they are to be held accountable.
3.Inventory should be counted twice.
4.Items counted should be neatly marked by the counters. e.g. different colour markers. Alternatively the tag system
5.Count teams identify damaged/dusty inventory on the inventory sheets (potential write downs)
6.Boxes selected at random in each section and the contents compared with the description on the label to confirm that the contents
7.Independent count controller tasks - walk through warehouse to make sure all items were counted 2 times, examine count sheets, instruct recount if differences are noted
8.No despatch of inventory during inventory count
9.Inventory received during/after count kept separate
10.Draw lines on open spaces on count sheets
11.Counters sign each count sheet and alterations that are made
12.No counter can leave without formal dismissal