Inventory Management
Red Flags
Exceptionally high consumption rate of an inventory item.
A staff member may have pocketed the cash received or made unauthorised payments for personal gain.
Frequent loss of inventory items (especially those expensive items) against the inventory record.
A staff member may be stealing or improperly disposing of the inventory items.
Frequent delays in updating the inventory movement records by a particular staff member.
A staff member may be buying time to cover up stolen items.
Increase in the number of customer complaints on the quality of goods delivered.
A compromised staff member and/or outsourced transport worker may be substitutinggoods with substandard ones during transit.
Consumption rate of raw materials used in a production line does not tally with the product output.
A staff member may be pilfering the raw materials.
Quantity of items issued by a particular warehouse staff member is higher than normal.
A warehouse staff member may be falsifying records to cover up misappropriation of items.
Recurring complaints from users about the poor quality of goods from a specific supplier.
A staff member may be accepting bribes for turning a blind eye to substandard goods.
