Inventory Control

Maintaining accurate inventory is critical for operational efficiency and financial accuracy. This guide covers comprehensive inventory control procedures in Angage ERP.

Understanding Inventory Control

Key Objectives

• Accuracy: 99.9% inventory accuracy target
• Visibility: Real-time stock levels
• Control: Prevent losses and errors
• Optimization: Right stock, right place
• Compliance: Audit trail and regulations

Control Methods

Perpetual Inventory

• Real-time updates
• Transaction-based
• Continuous accuracy
• Immediate visibility

Periodic Controls

• Cycle counting
• Physical inventories
• Spot checks
• Reconciliations

Cycle Counting

Understanding Cycle Counting

Cycle counting is the practice of counting a small subset of inventory on a regular basis rather than counting the entire inventory at once.

Count Strategies

ABC Analysis Method

Based on value contribution:

• A Items (80% value, 20% items): Count monthly
• B Items (15% value, 30% items): Count quarterly
• C Items (5% value, 50% items): Count annually

Location-Based Counting

• Random location selection
• Complete location counts
• Zone rotation
• High-traffic areas priority

Control Group Counting

• Same items repeatedly
• Process validation
• Error pattern identification
• Training effectiveness

How-To Guides

How to Set Up Cycle Count Program

1. Define Count Policies

1. Navigate to Inventory → Cycle Count → Setup
2. Configure count frequencies:

   A Items: Every 30 days
   B Items: Every 90 days
   C Items: Every 365 days
   High-Value: Every 15 days
   New Items: After 7 days

2. Create Count Calendar

1. Set daily count targets:
   • Monday-Friday: 50 counts
   • Saturday: 25 counts
   • Sunday: Closed
2. Assign resources:
   • Dedicated counters
   • Warehouse staff
   • Supervisors

3. Configure Tolerances

Set acceptable variances:

• Quantity: ±1% or 2 units
• Value: ±$100 or 0.5%
• Auto-approve within tolerance
• Escalate outside tolerance

How to Execute Cycle Counts

Preparation

1. Generate count lists
2. Options:
   • Print count sheets
   • Load to mobile devices
   • Assign to counters
3. Blind counting recommended

Counting Process

1. Go to Location
   • Follow count sequence
   • Verify location number
2. Count Items
   • Physical count all items
   • Record quantities
   • Note discrepancies
   • Document issues
3. Enter Results
   • Key in quantities
   • Or scan/voice entry
   • Add notes if needed
4. Submit Count
   • Review entries
   • Confirm submission

Variance Resolution

When variances found:

1. Review Variance
   • System shows expected vs actual
   • Calculate difference
   • Show value impact
2. Investigate Cause
   • Recent transactions
   • Location accuracy
   • Unit of measure
   • Damage/theft
3. Recount if Needed
   • Different counter
   • Supervisor present
   • Document findings
4. Approve Adjustment
   • Within limits: Auto
   • Outside limits: Manual
   • Document reason

How to Conduct Physical Inventory

Planning Phase

1. Schedule Inventory

   • Choose method:
     • Full shutdown
     • Rolling inventory
     • Cycle count ramp-up
   • Set dates
   • Notify stakeholders

2. Freeze Transactions

   • No movements during count
   • Complete all pending
   • Clear staging areas
   • Post cutoff time

3. Prepare Resources

   • Count teams
   • Equipment ready
   • Forms/devices
   • Training complete

Execution

1. Pre-Count Activities

   • Clean and organize
   • Complete putaway
   • Process returns
   • Clear discrepancies

2. Counting Process

   • Systematic approach
   • Two-person teams
   • Count verification
   • Tag counted areas

3. Data Entry

   • Enter all counts
   • Review variances
   • Investigate major differences
   • Recount as needed

4. Reconciliation

   • Compare to book
   • Analyze variances
   • Approve adjustments
   • Update inventory

How to Manage Inventory Adjustments

Adjustment Types

• Cycle Count: From counting
• Damaged Goods: Write-offs
• Theft/Loss: Shrinkage
• Found Items: Positive adjustment
• Unit Conversion: Measurement fixes

Creating Adjustments

1. Navigate to Inventory → Adjustments
2. Click New Adjustment
3. Select type and reason
4. Add items:
   • Item code
   • Location
   • Quantity change (+/-)
   • Cost impact
5. Attach documentation
6. Submit for approval

Approval Workflow

Based on value:

• Under $100: Auto-approve
• $100-$1,000: Supervisor
• $1,000-$10,000: Manager
• Over $10,000: Director

How to Track Inventory Accuracy

KPI Calculation

Location Accuracy

Correct Locations / Total Locations Counted × 100

Quantity Accuracy

Correct Quantities / Total Items Counted × 100

Value Accuracy

(Book Value - Variance) / Book Value × 100

Reporting

1. Daily accuracy metrics
2. Trend analysis
3. Root cause tracking
4. Department performance
5. Cost impact analysis

Advanced Controls

Inventory Reconciliation

System vs Physical

Regular reconciliation:

1. Export system inventory
2. Compare to counts
3. Identify discrepancies
4. Investigate causes
5. Adjust and document

Multi-System Reconciliation

When using multiple systems:

• ERP vs WMS
• POS vs inventory
• 3PL vs internal
• Consignment reconciliation

Security Measures

Access Control

• Physical security
• System permissions
• Transaction limits
• Segregation of duties
• Audit capabilities

Loss Prevention

• Camera coverage
• Random checks
• Exception reporting
• Trend analysis
• Investigation protocols

Technology Integration

RFID Implementation

• Tag high-value items
• Reader placement
• Automatic counts
• Real-time tracking
• Exception alerts

IoT Sensors

• Weight-based counting
• Movement detection
• Temperature monitoring
• Automated alerts
• Predictive analytics

Best Practices

Count Accuracy

• Use blind counting
• Verify high-value items
• Document everything
• Train counters well
• Regular process review

Continuous Improvement

• Analyze error patterns
• Address root causes
• Update procedures
• Enhance training
• Measure progress

Change Management

• Clear communication
• Stakeholder buy-in
• Gradual implementation
• Success celebration
• Feedback incorporation

Configuration

Control Settings

Navigate to Settings → Inventory → Control:

• Count Method: Blind/Visible
• Tolerance Levels: By class
• Approval Matrix: By value
• Recount Rules: Automatic triggers
• Adjustment Posting: Real-time/batch

Reporting Configuration

• Standard reports
• Custom dashboards
• Alert thresholds
• Distribution lists
• Export formats

Performance Metrics

Key Indicators

• Inventory accuracy %
• Cycle count completion
• Variance trends
• Adjustment values
• Process efficiency

Benchmarking

Compare against:

• Industry standards
• Historical performance
• Best-in-class
• Internal targets
• Continuous improvement

Troubleshooting

Common Issues

Count variances high

• Review count process
• Check training
• Verify locations
• Audit transactions
• Update procedures

System discrepancies

• Check posting delays
• Review cutoff times
• Verify integrations
• Audit permissions
• Reconcile regularly

Resource constraints

• Optimize count lists
• Use ABC focus
• Leverage technology
• Cross-train staff
• Adjust schedules

INFO

This completes the Inventory & Warehouse module documentation. Accurate inventory control ensures operational efficiency and financial integrity.