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

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.

last updated Monday, May 8, 2023
#Standard Operating Procedure #Inventory Control

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


A standardized operating procedure will enable all workers responsible for inventory to know the steps 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 products have to be kept at certain temperatures, others are rotated to ensure a timely shipment, and 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 much 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 visually inspect all items in each shipment. Any damaged items or items that don’t match the order 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 you may incur are customer and employee theft. To solve the problem, consider installing security personnel and cameras and limiting employees' access to areas concerning 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 of 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 loss area if an employee allows more products to leave the store. Products not removed from the inventory after they are sold later appear as excess.


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