16th Disrtict PTS Audit Checklist

2. Inventory Control
Inventory control (also referred to as stock control) refers to systems and procedures for tracking inventory items within a warehouse, with the goal of meeting customer demands while simultaneously cutting costs and providing financial flexibility. It includes purchasing, reordering, storage, shipping receiving and turnover.

Companies looking to effectively manage inventory must set reorder points so as to detect when it’s time to order more stock based on consumption values and calculations, in order to maintain enough inventory to satisfy customer demands without incurring spoilage costs.

Also, they need to generate reports for inventory status, reconciliation, historical stock, aging and financials within their supply chains – with automated generation for efficient communication among partners.

5. Inventory Requirements
The inventory a business needs to carry depends on its activity. Trading companies need to keep large inventories on hand in order to operate smoothly while manufacturing firms may invest heavily in various categories of inventory to meet rising demands. A useful indicator to analyze and track is inventory turnover rate which measures raw materials, work-in-process items and finished goods and provides sales managers and scheduling personnel with valuable insight to reduce inventory needs through increased sales of inventory items and promote more sales by sales managers and scheduling personnel. This information also can help reduce inventory requirements as a means to improving costs by encouraging sale rather than holding onto items in inventory which means less storage costs are associated with keeping inventory requirements.