Leverage your Chemical Inventory Audit - WorldOfChemicals

Tips for Ensuring a Successful Chemical Inventory Audit

Category : General Chemicals
Published by : Data Research Analyst, Worldofchemicals.com

The most challenging time of the year for chemical businesses is towards the end of the year when inventory count must be done. The necessity of annual inventory audit is to ascertain that the actual inventory present on the shelves of the warehouse is aptly reflected in the computer.

The personnel involved in the inventory count could overlook and miscount certain items. This would jeopardize the inventory audit conducted, due to its inaccuracy.

There are tips for ensuring better management, supervision and administration, through which an accurate inventory count can be accomplished, which are as follows: 

 

1. Warehouse Mapping

Chemical companies must create a detailed map of their warehouse. This should include all the shelving units, pallet racks and all other places where chemicals and equipment are stored. Other key places like the tag and hold bin, vendor return area and receiving dock must be included. At the time of the inventory audit, all the items should be counted. 

 

2. Cycle Counts

Potential errors can be identified by carrying out cycle counts of the inventory at a specific point in time. This makes the year-end annual inventory count much simpler. The employees become accustomed to inventory audits and count year-round. This allows better inventory count and audit efficiency as well as evaluation of errors.

 

3. Review Discrepancy Reports

Chemical distributors believe that thorough audit counts would lead to higher accuracy. However, errors can arise from mistakes made while entering into the computer such as the wrong unit of measure. Discrepancy reports must be printed after entering the chemical inventory count into the computer. The discrepancy reports would list chemicals and equipment with a significant difference between the computer data and physical counted quantity. These issues can be aptly resolved before the inventory audit is completed.

 

4. Tracking System

An effective tracking system is vital for the inventory counting and auditing process. Some of the tracking methods include inventory count sheets and inventory tags. Count sheets, tags and other tools help in ensuring all chemical inventory items are counted and verified aptly.

 

5. Limit Movement, Shipping and Receiving

It is important to limit the movement of chemical inventory during the counting process to ensure a proper count. Activities such as shipping and receiving must be less, such that errors can be easily identified, and correct counts can be obtained.

 

6. Pre-counting Surplus Stock

Counting and auditing the entire chemical inventory at the same time would be a herculean task. This would create pressurize the warehouse personnel to finish the work well before the deadline. This would ultimately lead to errors. Surplus stock and slow-moving stock areas can be counted before the annual inventory count. The pre-counted shelves and bins are excluded during the major inventory audit. This would lead to an accurate inventory count and ultimately save time and money.

 

You can buy and sell surplus stock and used equipment on our leading chemical portal.

 

Conclusion

Incorporating these tips for your inventory management would go a long way towards streamlining your inventory audit and count processes, giving accurate inventory counts and having lesser issues with your annual year-end audits.


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