Procedure and methods of inventory management, Preservation of goods, materials replacement procedure, documentory of stores, materials handling systems, handling of outsourcing manpower crews..etc

Question

Accepted Answer

Effective inventory management involves proper preservation, documentation, and handling of goods and materials.

Implement a system for regular inventory checks and updates
Use appropriate storage methods to preserve goods
Establish a clear procedure for materials replacement
Maintain accurate documentation of all stores and materials
Implement efficient materials handling systems
Ensure proper training and supervision of outsourcing manpower crews

Accepted Answer

INVENTORY MANAGEMENT PROCEDURE (Step-by-Step)
1. Material Requirement Planning (MRP)
Analyze consumption data, project needs, and safety stock

Generate requisition (indent) from departments

2. Purchase Requisition & Procurement
Prepare PR (Purchase Requisition)

Coordinate with procurement/purchase department

Receive PO (Purchase Order) copy for record

3. Receipt of Materials
Materials received at gate/store

Prepare Goods Receipt Note (GRN) after inspection

Cross-check quantity & quality as per PO

4. Inspection and Quality Check
Visual and technical inspection (by QA/QC team)

Accept/reject/return items based on standards

Issue Inspection Report and update records

5. Storage and Preservation
Store items as per type:

Chemicals in cool/dry area

Electrical items on racks with cover

Use FIFO/LIFO or batch coding for stacking

Ensure labeling, binning, palletizing

6. Issuance of Materials
Receive Material Requisition Slip from departments

Issue as per request and record in Issue Register

Update stock in ERP or manual ledger

7. Stock Updating and Monitoring
Maintain daily Stock Register / Bin Cards

Update inward and outward transactions

Use ERP tools like SAP/MM, Tally, Excel for accuracy

8. Stock Verification
Conduct monthly/quarterly/yearly physical stock audit

Reconcile physical vs system stock

Report shortages, excess, or damaged materials

9. Reporting and MIS
Submit reports to management:

Daily stock report

Slow/Non-moving stock

Consumption summary

Near-expiry items

10. Disposal / Return Process
Identify scrap, obsolete, or excess items

Issue Scrap/Return Note

Get approval for disposal

Maintain record for audit

📊 INVENTORY CONTROL METHODS
📌 1. ABC Analysis
A: High-value, low-quantity (strict control)

B: Medium value

C: Low-value, high-quantity (basic control)

📌 2. FIFO / LIFO
FIFO (First In First Out): Used for perishable & date-sensitive goods

LIFO (Last In First Out): Suitable where recent cost is priority

📌 3. VED Analysis
Vital, Essential, Desirable – for spare parts and critical inventory

📌 4. HML Analysis
High, Medium, Low cost items classification

📌 5. Minimum–Maximum Levels
Predefined Min Level triggers reorder

Max Level avoids overstocking

📌 6. Just-In-Time (JIT)
Material ordered and received only when needed – reduces carrying cost

📌 7. EOQ (Economic Order Quantity)
Calculates the most cost-effective order quantity

🛠️ Inventory Software/Tools Commonly Used
SAP (MM Module)

Tally ERP

Oracle SCM

MS Excel with formulas

Custom Inventory Control Systems

🧾 SUMMARY FOR PRACTICAL USE:
As an experienced store professional, your goal is to ensure material availability with optimum stock levels, accurate documentation, zero pilferage, and smooth department coordination. Using a mix of MRP, ABC/FIFO methods, and ERP tools, you can maintain efficient inventory control.

Would you like this as a presentation, training material, or ready-to-send company SOP document? I can format it accordingly.

INVENTORY MANAGEMENT PROCEDURE (Step-by-Step)
1. Material Requirement Planning (MRP)
Analyze consumption data, project needs, and safety stock

Generate requisition (indent) from departments

2. Purchase Requisition & Procurement
Prepare PR (Purchase Requisition)

Coordinate with procurement/purchase department

Receive PO (Purchase Order) copy for record

3. Receipt of Materials
Materials received at gate/store

Prepare Goods Receipt Note (GRN) after inspection

Cross-check quantity & quality as per PO

4. Inspection and Quality Check
Visual and technical inspection (by QA/QC team)

Accept/reject/return items based on standards

Issue Inspection Report and update records

5. Storage and Preservation
Store items as per type:

Chemicals in cool/dry area

Electrical items on racks with cover

Use FIFO/LIFO or batch coding for stacking

Ensure labeling, binning, palletizing

6. Issuance of Materials
Receive Material Requisition Slip from departments

Issue as per request and record in Issue Register

Update stock in ERP or manual ledger

7. Stock Updating and Monitoring
Maintain daily Stock Register / Bin Cards

Update inward and outward transactions

Use ERP tools like SAP/MM, Tally, Excel for accuracy

8. Stock Verification
Conduct monthly/quarterly/yearly physical stock audit

Reconcile physical vs system stock

Report shortages, excess, or damaged materials

9. Reporting and MIS
Submit reports to management:

Daily stock report

Slow/Non-moving stock

Consumption summary

Near-expiry items

10. Disposal / Return Process
Identify scrap, obsolete, or excess items

Issue Scrap/Return Note

Get approval for disposal

Maintain record for audit

📊 INVENTORY CONTROL METHODS
📌 1. ABC Analysis
A: High-value, low-quantity (strict control)

B: Medium value

C: Low-value, high-quantity (basic control)

📌 2. FIFO / LIFO
FIFO (First In First Out): Used for perishable & date-sensitive goods

LIFO (Last In First Out): Suitable where recent cost is priority

📌 3. VED Analysis
Vital, Essential, Desirable – for spare parts and critical inventory

📌 4. HML Analysis
High, Medium, Low cost items classification

📌 5. Minimum–Maximum Levels
Predefined Min Level triggers reorder

Max Level avoids overstocking

📌 6. Just-In-Time (JIT)
Material ordered and received only when needed – reduces carrying cost

📌 7. EOQ (Economic Order Quantity)
Calculates the most cost-effective order quantity

🛠️ Inventory Software/Tools Commonly Used
SAP (MM Module)

Tally ERP

Oracle SCM

MS Excel with formulas

Custom Inventory Control Systems

🧾 SUMMARY FOR PRACTICAL USE:
As an experienced store professional, your goal is to ensure material availability with optimum stock levels, accurate documentation, zero pilferage, and smooth department coordination. Using a mix of MRP, ABC/FIFO methods, and ERP tools, you can maintain efficient inventory control.

Would you like this as a presentation, training material, or ready-to-send company SOP document? I can format it accordingly.

INVENTORY MANAGEMENT PROCEDURE (Step-by-Step)
________________________________________
1. Material Requirement Planning (MRP)
•	Analyze consumption data, project needs, and safety stock
•	Generate requisition (indent) from departments
________________________________________
2. Purchase Requisition & Procurement
•	Prepare PR (Purchase Requisition)
•	Coordinate with procurement/purchase department
•	Receive PO (Purchase Order) copy for record
________________________________________
3. Receipt of Materials
•	Materials received at gate/store
•	Prepare Goods Receipt Note (GRN) after inspection
•	Cross-check quantity & quality as per PO
________________________________________
4. Inspection and Quality Check
•	Visual and technical inspection (by QA/QC team)
•	Accept/reject/return items based on standards
•	Issue Inspection Report and update records
________________________________________
5. Storage and Preservation
•	Store items as per type:
o	Chemicals in cool/dry area
o	Electrical items on racks with cover
•	Use FIFO/LIFO or batch coding for stacking
•	Ensure labeling, binning, palletizing
________________________________________
6. Issuance of Materials
•	Receive Material Requisition Slip from departments
•	Issue as per request and record in Issue Register
•	Update stock in ERP or manual ledger
________________________________________
7. Stock Updating and Monitoring
•	Maintain daily Stock Register / Bin Cards
•	Update inward and outward transactions
•	Use ERP tools like SAP/MM, Tally, Excel for accuracy
________________________________________
8. Stock Verification
•	Conduct monthly/quarterly/yearly physical stock audit
•	Reconcile physical vs system stock
•	Report shortages, excess, or damaged materials
________________________________________
9. Reporting and MIS
•	Submit reports to management:
o	Daily stock report
o	Slow/Non-moving stock
o	Consumption summary
o	Near-expiry items
________________________________________
10. Disposal / Return Process
•	Identify scrap, obsolete, or excess items
•	Issue Scrap/Return Note
•	Get approval for disposal
•	Maintain record for audit
________________________________________
📊 INVENTORY CONTROL METHODS
________________________________________
📌 1. ABC Analysis
•	A: High-value, low-quantity (strict control)
•	B: Medium value
•	C: Low-value, high-quantity (basic control)
📌 2. FIFO / LIFO
•	FIFO (First In First Out): Used for perishable & date-sensitive goods
•	LIFO (Last In First Out): Suitable where recent cost is priority
📌 3. VED Analysis
•	Vital, Essential, Desirable – for spare parts and critical inventory
📌 4. HML Analysis
•	High, Medium, Low cost items classification
📌 5. Minimum–Maximum Levels
•	Predefined Min Level triggers reorder
•	Max Level avoids overstocking
📌 6. Just-In-Time (JIT)
•	Material ordered and received only when needed – reduces carrying cost
📌 7. EOQ (Economic Order Quantity)
•	Calculates the most cost-effective order quantity
________________________________________
🛠️ Inventory Software/Tools Commonly Used
•	SAP (MM Module)
•	Tally ERP
•	Oracle SCM
•	MS Excel with formulas
•	Custom Inventory Control Systems
________________________________________
🧾 SUMMARY FOR PRACTICAL USE:
As an experienced store professional, your goal is to ensure material availability with optimum stock levels, accurate documentation, zero pilferage, and smooth department coordination. Using a mix of MRP, ABC/FIFO methods, and ERP tools, you can maintain efficient inventory control.

Accepted Answer

Procedure and methods of inventory management

Asked in Sogex Oman India

Procedure and methods of inventory management, Preservation of goods, materials replacement procedure, documentory of stores, materials handling systems, handling of outsourcing manpower crews..etc

Interview Questions Asked to Senior Executive - Stores at Other Companies