It is a constant source of amazement to me that so many companies be they large or small fail to keep a control of their inventories. Whilst Management consistently push for increased sales performance, the question of housekeeping is often put on the back burner or it would appear totally neglected.
Yesterdays damming indictment of the Ministry of Defence sums up all that it wrong in many organisations, although frankly the scale of the ineptitude beggars belief.
The National Audit Office flagged up a lack of evidence about the existence and value of some £6.3bn of assets - including £752m of military equipment, which includes firearms and £184m of Bowman radios.
Back in 2008-9, auditors had raised concerns about inventory accounts and warehouse systems and checks had been improved, but they had found that the inventory recorded did not match the stock count at 29% of locations.
This begs the question: how comfortable are you with your Stock and Debtors controls?
It might be timely to conduct a pre-emptive review of your operating systems now rather than wait for the post mortem results.
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