Annual planning

The annual planning includes:

• A list of the inventory storage location:
  • On site
  • Off site: inventory on consignment, held in third parties facilities or by toll manufacturers.
• Frequency of cycle counts
• A planning by type of inventories taking into account the following objectives:
  
  • Except for industrial supplies:
    • A complete count of the items included in the inventory records of each warehouse should be done for 31st December.
    • A count of items representing 90% of the value of prior end inventory should be done as of 30th September, each year.
  • A special time-frame is applied for industrial supplies:
    • All references must be checked over a 3-year period.
    • By December 31st, references counted must represent at least 80% of the total value of the industrial supplies inventory.

Site procedure

Responsible: Finance responsible assigned with inventory manager
Frequency: Annual 
Controls: IAC 04.13.00.01 & IAC04.14.00 
The site procedure has to include: 
- The name of the Finance responsible assigned who is authorized to validate physical inventory discrepancies. 
- Particularities linked to the segregation of duties (§ 1d). 
- A reference to applicable safety procedure. 
- Determination of a threshold for the value of discrepancies above which a second count must be performed. A 0.5 % threshold of the total amount of the inventory concerned is recommended, it will be applied as such if the site inventory procedure doesn't specify otherwise. 
- Determination of a threshold for the value of discrepancies above which the finance manager or the business controller, the plant manager and the enterprise supply chain director are informed (§ 4b), 
- Specific scenarios in which no recount is required:

• Meter readings or print in continuous production environments,
• Scenarios specific to the site's activities.