How a Standard Operating Procedure for Inventory Control can Benefit your Business

    by Aditi Bansal

Updated on Tuesday, July 11, 2017

Whichever type of business you own, inventory control is extremely important. Your inventory should move each time orders are received, deliveries are made to your client, transfers are done to different locations and when the inventory is relocated within your facility. Additionally, you should also track losses due to theft or damage.

tags  #Standard Operating Procedure  #Inventory Control #


A standardized operating procedure will enable all workers that are responsible for inventory to know the steps that they should take every time the inventory is moved.

Storage and Control

Different products that are kept in a store have their unique storage requirements. Some of the products have to be kept at certain temperatures, others are rotated to ensure a timely shipment, while others have some environmental requirements. An ideal standard operating procedure example should reflect all requirements and prompt all workers to monitor the inventory for any rotation requirements. A deficient storage method will expose your inventory to a lot of waste through inappropriate storage or expiration.

Receiving Goods and Supplies

Control of inventory begins after orders reach the receiving department. The receiving personnel should start the documentation for all items and make a visual inspection of all items in each shipment. In case there are any damaged items or items that don’t match the order, they should be refused. Shipping orders should be documented properly, especially when some items are incomplete or broken.

Storage Security

The two main causes for any losses that you may be incurring are customers and employee theft. To solve the problem, consider installing security personnel, security cameras, and limiting the access of employees to areas that concern their positions. Also, ensure that all employees sign a theft policy so that they know what happens when they are found stealing. Along with the theft policy, provide a way whereby employees can report a theft.

Scheduling and Rotation

You should have inspection dates for all items where you’ll inspect for the expiration dates, and sell the oldest items. The expired items should be disposed and documented. Physical inspections should also be scheduled, and any missing items should be documented in the inventory control.

Product Shipping

Shipped products should be removed from the inventory carefully because this is a potential area of loss in case an employee allows more products to leave the store. Products that aren’t removed from the inventory after they are sold later show up as excess.

This page has a focus on Standard Operating Procedure, Inventory Control was shared by Aditi Bansal.

Share this on: