Dear Mr Gulati,
For physical verification person of your stature is not required. What you should be doing is an audit from the finance point of view. Measure the following in respect of your stores:
a) Inventory accuracy ratio
b) % of obsolete inventory in terms of value
c) Area utilisation in sq ft (is there under-utilisation of capacity in any way? Is capacity is too low and excess labour is utilised since the material is ordered frequently)
d) Volume utilisation in cubic feet
e) Break up of the area for running inventory, dead inventory and scrap inventory
f) Inventory Shrinkage ratio
g) has shrinkage been defined for 'A' class materials? If yes, then is the shrinkage within the specified limits? The same is applicable for 'B' class items as well.
h) Equipment utilisation ratio (like pallets etc)
i) What is the inventory turnover ratio? How can it be increased?
j) Are the bin cards used? If yes, are these updated?
k) What is the inventory carrying cost for every store?
l) Has the material classification been done? If yes, then what is the break up in terms of value? What is the break up in terms of area?
Do this audit for every store. I am the leading procurement faculty of India. You may contact me for the training of your procurement or stores professionals.
Last request: - This is a public forum. You cannot use SMS language. You are not writing a letter to your friend. There is a difference between Citehr and Facebook.
To know more about my training activities in this field, you may click the following links and download the respective documents:
Dinesh V Divekar - Procurement Faculty
Programme Structure for Various Training Programmes in Purchase and Inventory Management
Thanks,
Dinesh Divekar
+91-9900155394
dineshdivekar(at)gmail(dot)com