An inventory controller manages a company's merchandise or stock, along with raw materials. This position has an impact on the business's bottom line because a shortage or overage, or anytime inventory is stolen or lost, usually results in a loss in organizational profit. He or she should apply effective security practices that deter both internal and outside intruders from stealing. When receiving inventory products, an inventory controller should also examine boxes for damage, retain damaged items, and verify that all ordered products are received. Some type of plan should be used by inventory controllers to manage items, but the approach used depends on the size and needs of the company.
No matter what type of security practices an inventory controller implements, they should be discussed with every organizational staff member. All inventory items should be delivered to safe and secure locations that are monitored by surveillance systems. Retail stores often find it beneficial to send staff members through training to teach them how to identify shoplifters. Inventory controllers should make sure appropriate hotlines and reporting methods are in place so that employee complaints can be made when internal inventory fraud is suspected.
When receiving inventory items, an inventory controller should be present to verify every ordered item is received. Before signing the delivery receipt, the person should write down any items that are damaged; this ensures the supplier is notified of the items that were damaged upon delivery. After receiving authorization to send damaged items back, they should immediately be returned. The quicker the items are returned, the faster they will be replaced, in most cases. Damaged items should not be stored in places where they will be forgotten; after so much time, it may not be possible to return them.
In order for inventory items to stay in good condition, they should be stored in buildings that are temperature controlled. This helps items to not deteriorate or become contaminated, which helps maintain stable inventory levels. Temperature fluctuations may also cause damage to parts, which might then find their way into the manufacturing process.
There are many different approaches to inventory management, and the best system depends on the size and needs of a company. The eyeball approach is often used by inventory controllers that do not have to keep exact numerical records of inventory items. Anytime this approach is used, actual numerical counts of inventory items should take place at least twice a year. When an inventory controller has the responsibility of keeping accurate, numerical records of inventory supplies, which is common in large businesses, a computerized inventory management system is often the best system.
