INVENTORY MANAGEMENT POLICY

OVERVIEW

This Inventory Management Policy (hereinafter referred to as” Policy”) is effective from [INSERT THE DATE ON WHICH AGREEMENT COMES INTO FORCE] and applies to all the Employees of the [INSERT THE NAME OF THE COMPANY] (hereinafter referred to as “Us” or “We” or “Company”).

This Policy outlines set guidelines and procedures for assessing and managing inventory controls associated with the Company.

1. PURPOSE
   1. This policy establishes a comprehensive framework for the systematic and effective management of inventory levels, managing suppliers, proper storage, optimal utilization of Company’s resources, accurate tracking thus ensuring adherence to regulatory standards, and maintaining the trust and confidence of clients.
2. SCOPE
   1. This policy applies to all our employees, contractors, personnel or any individual involved in inventory management within the Company. It encompasses the procurement, storage, tracking and disposal of raw materials and supplies within the Company’s supply chain. It aims to ensure efficient control over inventory levels, meet customer demand and minimize carrying costs associated with raw materials and supplies.
3. INVENTORY CLASSIFICATION
   1. The Company’s inventory shall be classified into the following categories:-
      1. Work in progress- Items currently undergoing processing or assembly but not yet completed will fall under this category. These items are typically needed as and when required to continue the production process until they reach the finished goods stage.
      2. Raw Materials- Items acquired for use in the production process but not yet incorporated into finished goods.
      3. Finished Goods- Completed goods which are ready to meet customer demands will fall under this category.
      4. Maintenance, repair and operations – Items required for maintenance and repair during the operational lifespan of machinery, equipment, or facilities will fall under this category.
4. ROLES AND RESPONSIBILITIES
   1. Inventory management is a collective responsibility shared by all employees involved in handling or supervising inventory. Within each department, clear roles and responsibilities will be assigned to ensure efficient management practices.
   2. Accurate recording of inventory transactions, such as receipts, issues, transfers, and adjustments, is imperative and must be documented precisely in the Company’s designated inventory management system.
5. INVENTORY TRACKING AND STORAGE
   1. Employees must utilize inventory management software to track inventory levels, monitor stock movements and generate reports. They must coordinate with suppliers to ensure timely delivery of orders and maintain accurate lead time information.
   2. Inventory items will be stored in designated and well-organized areas that adhere to safety and security regulations, with proper shelving, labeling and storage conditions maintained.
   3. Access to these storage areas will be restricted to authorized personnel, and security measures such as locks and access logs will be implemented to prevent theft, loss, or unauthorized entry.
   4. Perishable items and materials with expiration dates will be managed on a First–in–First–out (FIFO) basis to minimize waste and maintain product quality.
6. INVENTORY DISPOSAL
   1. Department must identify and segregate excess, obsolete or damaged inventory for disposal. Criteria for identifying disposal inventory will include factors such as expiration dates, damage or lack of demand.
   2. Disposal of inventory should be in accordance with environmental regulations and Company’s policies.
7. TRAINING AND SECURITY
   1. Employees involved in inventory management and disposal processes will receive appropriate training to perform their duties effectively. Ongoing development programs will be implemented to keep employees updated on inventory control best practices.
   2. Our Company will implement security measures, such as access controls, surveillance cameras, and inventory audits, to prevent theft or unauthorized access.
   3. Regular risk assessments will be conducted to identify vulnerabilities and implement corrective actions for improvement.
   4. Our Company is committed to defining clear and measurable standards for each product and service offered. These standards encompass quality, performance, safety, and any other criteria relevant to customer satisfaction and regulatory compliance.
8. EMPLOYEE FEEDBACK
   1. Employee feedback will be actively sought and used to improve inventory storage. Employee complaints will be addressed promptly, and corrective actions will be implemented to drive continuous improvement.
9. COMPLIANCE WITH THE LAWS REGULATIONS
   1. Individuals working within the Company must adhere to the required applicable laws and regulations. The employee must comply with the company's policies and procedures with respect and dignity. We expect our employees to be responsible when dealing with our company’s finances and valuable resources.
   2. Employees and Supervisors must stay informed about the laws relevant to their roles and responsibilities and ensure that their actions and decisions align with legal standards of the Company.
10. CHANGES TO THE POLICY
    1. We reserve the right to update and make changes to this policy from time to time based on the working conditions of the Company. The Company on updating this policy will inform the members of the Company.
11. FURTHER INFORMATION
    1. For any queries or further Information regarding our Company or about this Policy, the concerned person can contact us through email [INSERT THE EMAIL ADDRESS OF THE COMPANY]
12. ACKNOWLEDGEMENT
    1. We expect all employees to adhere to this policy of the Company. The Company will apply this policy consistently and fairly to ensure a harmonious and productive workplace for all.
    2. By signing below, you acknowledge that you have carefully read and understood the terms and contents of this policy.
    3. You acknowledge that you will follow the set guidelines of this policy as well as of the Company and failure to do so; the Company can take Disciplinary action against such individuals.

COMPANY                    

[INSERT THE NAME/DESIGNATION OF SIGNING AUTHORITY OF COMPANY]

Authorized Signature