Many times the paperwork affecting the value of this asset flies around the office like a whirlwind blew through the office window with some of the paperwork landing where it should, some landing close, and some never landing at all. Inventory - The Lifeblood of a Company Let us take a look at the characteristics of a company that is generally acknowledged to have an excellent inventory system. Inventory is stored inside a fenced stockroom with preassigned bins and an overflow area that is clearly defined. The fence has a door with very few keys distributed only to authorized individuals. No unauthorized people ever wander in and out.
Service is prompt and the hours the stockroom is open are known in advance.
Every receipt is accompanied by a proper document. Every issue also has a corresponding document identified with it. The objective of zero defects is clearly understood and expected. Time is allowed every day to reconcile transactions with inventories. Audits are taken periodically and discrepancies are totally unacceptable.