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Safety Stock...to hide poor inventory control

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Posted 22 November 2016 - 07:29 AM

Hi All,


Background. We are a cold pressed organic juice copacker. We are supposed to be working towards brc then SQF.


We recently hired a new warehouse manager and I was training him at first according to regulation and everything... since once a person is trained and sees they do not have to actually do things right they don't. I trained him to find an answer for missing or extra inventory and to have control in my opinion regarding the warehouse.


However, management felt I was too focused on regulations instead of getting it done asap.


Brings me to now... I noticed he would play with the inventory numbers to make them work and I immediately researched(receiving, production, disposal, sent inventory documents) and called him out in a meeting.  Now we have a "safety stock" of say a few hundred lbs, has anyone experience anything like this?


Am i being overly dramatic but i feel there is no actual control on the inventory since a safety net was placed for mistakes.




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Posted 23 November 2016 - 10:52 AM

If your "safety stock" is finished product ready to ship - care must be taken with use by dates and customer expectations as to made on dates and delivery dates.

If your "safety stock" is WIP- Work in progress and is going to be added into the next run - your management needs to understand they have just increased the potential recall size - all lots shipped of "safety stock" plus new run lot. In addition a risk analysis of potential shelf life issues needs to be done.

I am not clear what you mean by safety stock.

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