83. Inventory Control ProceduresBy Roger Bryan
Every product manufactured undergoes various inventory control procedures before it reaches the market. This varies with each business and you should include the following details about the various sections of inventory control in your business plan.
Cycle Counting – This is a healthy practice being adopted by modern business and you should adopt the same to conduct the reconciliation of products. Include details on how you plan to carry out the cycle counting in you warehouse and how often you plan to initiate the cycle. Also discuss plans on how you will ensure that the inventory problems are sorted out effectively.
Classification – Create a general of classification for your products. You can classify products on the basis of their value or demand. Include details on how frequently you plan to carry out inventory control procedures for each of these products and ensure efficiency.
Damages – Damages are part of any warehouse and your business plan should contain all the facts on how you plan to deal with this problem effectively. Mention details about how you plan to look for trends and make moves to cure your business of this problem.
Speed – Mention the speed at which you plan to clear the inventory and replenish the raw material required for your business.
Apart from these, include details about how you plan to clean out old inventory and create accountability on part of your suppliers.