9. MANAGEMENT PROCEDURES
Ensure proper management, ordering, and inventory protocols are being followed at the store level
Scope:
6.1 – 6.8; 9.1 – 9.13; 11.1 – 11.12
Related Documents:
9.11 Inventory audit
Purpose: Stock audits helps the Boutiques control their stock and COGS process. They help to check the opening and closing stock levels from previous periods. This is the process of physically verifying the stock quantity available in the Boutique against the quantity recorded in the system. Discrepancies will be recorded and reported to retail management.
Objectives:
1. To strengthen the controls related to inventory management.
2. Efficient usage of merchandise.
3. Reduce the inventory adjustments.
Audit procedure:
1. Stock audit will be carried out daily/weekly/monthly depending on the level of movement of stock.
2. Audit visits will be either scheduled or random, depending on the business requirement.
3. This process will be in addition to the regular monthly inventory.
4. Auditor will prepare count sheet and verify the items physically with the help of Boutique team member / manager / in charge.
5. Discrepancies will be identified on spot.
6. Shrinkage in quantity will be compared against the consumption during the inventory period.
7. Inventory period will be from the last physical inventory to audit date.
8. Auditor will verify the documentation related to:
Requisitions
Shipment receipts
Returns
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Damaged stock/stock damaged in Boutiques and its approval ref.
Customer promotion approval
9. Explanations will be collected for all discrepancies.
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