Controls over production and inventory

Why do you think it’s important to have controls over inventory?

Inventory is related to your company’s operations. They are what you sell to generate revenues, they are your assets you sell regularly to earn profits. Note here that earning profits requires that your goods are priced accurately so as to cover for all kinds of expenses your company incurs. 

Production related controls are as important as any other controls. Production is essential to making goods that you can sell and thus is contributing to your operations just as same. In fact, production is even more crucial in terms of necessity for controls since it includes various processes in itself – managing raw materials, producing goods from them, efficiency and so on.

Controls over production and inventory are those which are regular and should be written down in order to ensure that routines are followed every step of the way. They shoudl however not disrupt the process itself so think them through carefully – what exactly needs to be controlled and what’s the optimal process.