Types of Inventory Management System

Office Inventory is a key task of the administration section to list all consumable or non-consumable items in the official record. Far cost the depreciation of an asset and determine the deficit price value.

It is very important for the administration to list out all items on a monthly basis and introduce an action plan to sold-out depreciated items among the vendors and update inventory stock register for annual audit purposes. In this post, we’ll elaborate on the inventory process and inventory register for broader information.

Types of Inventory Management System

INTRODUCTION:

The basic theme of office inventory is to provide essential awareness towards the allocation of required assets through the proper way to all employees of any organization. Employees are also responsible to keep check and balance of assets from time to time.

Management of all organizations is responsible to provide training to their staff on the related field for betterment.

The administration is a focal stage to develop inventory procurement and distribution procedures according to rules regulations of any organization.

Here are some useful formats and ideas to systemize office inventory management, where want to take some new steps to systemize the whole inventory record of the organization.

IMPLEMENT AN ACCURATE INVENTORY SYSTEM:

Matching count in the physical warehouse to the count and the computer enlisting the organization of others are keys to accurate inventory.

Indeed, the basic points of effective inventory management that can improve office inventory records. Maintaining inventory accuracy must be an integral point of any organization, promote accuracy as everyone’s duty. Organization management must need to provide opportunities to their concerns staff for better performance.

Define organization inventory processes clearly for everyone whose job affects inventory. Integral formal checks where an operation is critical. Get the right people who perform the job involved in the definition process.

Documents employee procedure clearly, and include information about quality standards, physical aspects, and safety nets. Include correct methods for filling out and processing paperwork, the sequence, and the timing of data entry.

Set training schedules allow plenty of time and make sure each group has a thorough understanding of the procedure. Emphasize that the procedure is the only right way to perform the tasks.

Test your employees on the procedure to ensure that they know and remember their multiple choices.

Discuss wrong answers with employees in private to re-establish the right procedure and encourage understanding.

  

Address deviation from the written procedure immediately, if an employee has a better method of completing a task and you might integrate this method.

Measure accuracy tracking as a percentage of total assets; communicate accurate information to your staff in a positive manner.

PHYSICAL AND FINANCIAL CONDITION OF ITEMS

Physical Condition						Financial Status
Asset or serial No	Item description (Make and model)	Location	Condition	Vander	Year of service left	Initial Value	Monthly Operating Cost	Total Cost	Current Value

Coding for check and Balance:

Indeed according to rules and regulations of the organization, display inventory code numbers in all un-consumable items properly.  This practice will make easier to finding-out any item if needed.

INVENTORY LIST                                   (Format)

Inventory List
Inventory ID	Name	Description	Unit Price	Quantity in Stock	Record Level	Record Time in Days	Quantity in Record Book

ASSET CODING & DOCUMENTING:

The fixed assets coding will follow the pattern explained below.

A single letter representing each Location will prefix asset codes, so that just by looking at the code of the asset, one is able to determine which Location the asset belongs to.

With each Location, fixed assets will be classified under the following:

Motor Vehicles

Equipment & Appliances

Furniture & Fixture

Computers & Allied

Be the focal point to activate all things around you, keep proper monitor of outcomes and analyze the result with deep knowledge. Evaluate the results with the exact requirements and fulfill the gap if found to and complete task. 

Share suggestions and experience to maximize the profitability under minimum utilization of available resources.

Orient all staff including newcomers with organization policies and procedures. Organize policy review meetings to share the key policy matters with all sections.  Consolidate all feedback from team members is present it to the line manager.

Always become the focal point to and share all administrative related information to concerned sections/departments on monthly, quarterly and annual basis.

Provide technical and moral support to the line manager to take a better decision.  Think in a positive way and make sure to facilitate all employees including provide a good enabling working environment to achieve the perfect job done results. 

Listen to all administrative related issues and try to settle the genuine issues immediately and normal issues gradually.

Indeed utilization of all human resources for the betterment and achieving organizational goals.  Supervise and delegate assignments to lower staff without hesitation.  Use necessary verbal motivational tools to achieve a better result.

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Analyze office working environment and determine and how to provide enabling the environment to an employee where all employees work freely and generate better progress.

Assess the employee's need and make sure all things related to work are in place. Facilitate them according to the organizational policy.

Be a front person to welcome all assignments from the line manager. Accept all challenges with a positive approach. Develop good relations with all stakeholders to minimize inter-group conflict and apply all measures to resolve the inter-group and intra-group issues.

Treat all with co-workers with professionally and adopt perfect supervision techniques to satisfy reporting employees. Clear and implement well define the job description and draw the line of responsibilities.  Supervise and play a leading role to implement all administrative assignments including monitor fixed datelines of all project tasks.

Build a result-oriented human resources team to meet the daily routine and exceptional office matters. Share knowledge with teammates and allow others to participate in the decision-making process. Most professionals relying on teamwork and distribute responsibilities according to their specialty.

Use standard monitoring tools in depth to and analyze and share the work progress indicators with the line manager.

INVENTORY POLICY FOR CONSUMABLE ITEMS IN OFFICE

All tangible items purchased by ABC, other than those, which fall within the definition of a fixed asset, will be classified as consumable stores.

The general policy is to expense the value of consumable stores on the premise that the bulk of purchases are consumed within a financial year.  Any deviation from this policy will require the approval of the General Manager.

As far as possible, the consumable store will be purchased from local suppliers, keeping both cost and quality factors in view.  Developing local sources of supply is a continuing policy of ABC.

Bulk ordering against consolidated ABC requirements will be implemented if significant economies can be achieved thereby. Where possible procurement will be done through HEAD OFFICE Bulk Purchase Committee.

A cash advance will be kept to an absolute minimum. Payments to regular suppliers will be made against crossed cheque /drafts after receipt of goods.

Although consumable stores are held at nil value, strict control must be enforced over their receipt, storage, and issue

Item falling under the following categories will be included in consumable stores (also referred to as “Store”)

Hardware (barbed wire, pipes, angle iron)

Fertilizers

Seeds

Fuel

Motor Vehicles Spares

Office Supplies Stationery

The purchase of a store item will be initiated through a Stores Request No (This will be a sequential number for each Field Office /Section. 

Store Code (existing Store Code, or “new” if the item does not have a store Code)

Quantity, Required by (date), Justification, For Use in (Location) Requested by (name/designation) Signature

Once the inventor has completed the above section of the form, he will give it to the Finance Section.  There the request will be checked against the Annual Budget and the amount spent/ committed to date, to verify the budgetary status of the request.

Also, the Finance Section will calculate the total amount of the request by multiplying the quantity requested by the latest available rate of the item. Then the Finance Section will give the form to the Field supervisor/Section Head. 

If the total amount of the request Rs. 10,000 or more, then the Field supervisor / Section Head will recommend if he agrees with the request.  He will send the form to the Manager Administr

Office / Head office, who is also the Convener of the Purchase Committee.  

The Convener will obtain three quotations, on the basis of which a comparative Statement of Quotations (GEN1-Annexure-II will be prepared.  The Store Request along with the Comparative Statement of Quotations will be tabled by the Convener at the next meeting of the Purchase Committee.

The Convener may obtain a quotation for bulk purchase of items of common use in the Region / Head office.

PURCHASE COMMITTEE

Head office Purchase Committee will each comprise of three members

The Manager Finance and Manager Administration at the Field Office will be a permanent member of the Field purchase Committee. The Regional Head on an annual basis will nominate the third member.

Program Manager- Finance & Admin and Manager Administration at the Head office will be permanent members of the Head office Purchase Committee the General Manager on an annual basis will nominate the third member.

The Manager Administration will be the Convenor of the Purchase Committee.  He will be responsible for convening meetings of the Purchase Committee and also for minting them.

The Purchase Committee may invite the indentor or other staff members to attend a particular meeting for assistance.

Members of the Purchase Committee cannot delegate their membership to any other person without the prior approval of the Regional Head / General Manager in the Field Office /Head office, respectively.

Whenever possible procurements will be made through HEAD OFFICE Bulk Purchase Committee

And the requirement of obtaining three quotations shall be waived where some quotation is recommended as repeat order by HEAD OFFICE Committee

To examine requests for consumable stores submitted by Field Offices/Sections, and make recommendations to the Regional Manager / Programme Manager-Admin & Finance after ensuring that: The expenditure proposal and its budgetary status have been clearly set out and authenticated by the official designated.

If the expenditure is unbudgeted, then there is a recommendation to offset this expenditure against a budgeted item.  If this is not possible, then a justification for this. Three quotations are attached.  If this is not feasible, for whatever reason, then an explanation in writing.

Local sources of supply have been explored fully before making a recommendation for purchase from down country. The recommendation, if any, for advance payment against order/delivery is justified, and that a cash advance, if requested, is unavoidable.

To recommend the method of disposal and a reserve price for stores written-off. To identify items for bulk purchases and coordinate such purchases with the other Purchase Committees. The Convener will keep minutes of Purchase Committee meetings.  All the members of the Purchase Committee will sign these minutes.

The recommendation of the Purchase Committee will be required for consumable stores for use in Productive Physical Infrastructure (PPI) Project if procured by ABC.

The Purchase Committee will review the store's Request as well as the Comparative statement of Quotations, and make its recommendation on the Stores Request.  All members of the Purchase Committee will sign the Stores Request.

If the Purchase Committee recommends the purchase of the requested stores, then the Stores Requests, and other documents attached to it, such as the Comparative Statement of Quotations will be put up to the Regional Head / Program Manager-Admin & Finance for approval.

The Regional Head / Programme Manager-Admin & Finance will review the documents reviewed from the Purchase Committee and will either approve or not approve the requested store's purchase, by writing his decision in the “Remarks” blank and signing the form.