Tag Archives: inventory record accuracy

The Challenges & Benefits of The Physical Count

A finance executive of a metals manufacturing corporation wanted a physical count of all items at the company’s plants.  And he wanted it done in two (2) days.  A physical count consists of a team identifying, counting, and tagging items, such as products, work-in-process, and raw materials.  The purpose of a physical count is toContinue reading “The Challenges & Benefits of The Physical Count”

Inventory Record Accuracy:  A Step to Supply Chain Improvement

Managers of a large food condiments manufacturer bragged that their finished products Inventory Record Accuracy (IRA) was 99%.  They added that they met this level constantly, not just when I as a consultant was there auditing the manufacturer’s supply chain operations.    How do you compute the IRA?  I asked the warehouse manager.  The warehouse officeContinue reading “Inventory Record Accuracy:  A Step to Supply Chain Improvement”