Inventory Tracking / Check SOP

This procedure defines how Blitzpanel maintains an accurate, trustworthy record of component and material stock across bins, locations, and staging areas.

It exists so that stock quantities on the system of record match what is physically on the shelf, so kitting and production are never held up by a false "in stock" count, and so purchasing reorders on real need rather than guesswork.

An accurate inventory record also supports UL508A traceability: knowing which listed/recognized components are on hand and where free-issue customer material is segregated from Blitzpanel-owned stock.

Applies to all Blitzpanel-owned stock held for control-panel builds: components, wire and wire duct, terminal blocks, enclosures, hardware, and consumables held in stockroom bins, staging shelves, and point-of-use locations on the shop floor.

Covers bin/location setup, receiving and issuing transactions, cycle counts, periodic full physical counts, variance reconciliation, and maintenance of min/max reorder levels.

Does not cover the sourcing and purchase-order process for buyout components (see Procurement SOP) or the physical intake/inspection of incoming shipments at the dock (see Receiving SOP). Job-specific kitting pulls are covered here only as an issuing transaction; the kit-build process itself is covered in the Kitting SOP.

SKU / Part Number — the unique identifier for a stocked item in the system of record.

Bin / Location — the specific, labeled physical storage spot (shelf-bay-shelf-bin or point-of-use station) assigned to a SKU.

On-hand quantity — the system's current recorded quantity for a SKU at a location, before any physical verification.

Cycle count — a scheduled count of a subset of SKUs/locations on a rotating basis; a physical count is a full count of all stocked SKUs at a point in time, typically annual.

Variance — the difference between system on-hand quantity and the physically counted quantity.

Min / Max levels — the reorder point (min) and target replenishment quantity (max) set per SKU to trigger purchasing.

Free-issue material — customer-supplied stock; tracked separately from Blitzpanel-owned inventory (see Free-Issue Material Handling SOP) and must never be commingled in the same bin as owned stock.

Role	Responsibility
Inventory / Warehouse Clerk	Performs receiving and issuing transactions, maintains bin labeling, executes scheduled cycle counts.
Warehouse / Inventory Lead	Owns the cycle-count schedule and ABC classification, reviews variances, approves routine adjustments within threshold.
Production / Kitting Staff	Issues material against a job or kit pull only through a logged transaction; reports shortages or damaged/mislabeled stock immediately.
Procurement	Owns min/max level settings and reorder execution once a SKU hits its reorder point (see Procurement SOP).
Finance / Controller	Reviews and approves inventory adjustments and write-offs above the defined dollar threshold. TODO: define approval thresholds ($ and % variance) for write-offs.
Quality	Confirms that components used on listed builds are pulled from correctly identified, non-commingled stock consistent with the job's UL508A listing basis.

Inventory management system / ERP module of record for on-hand quantities, transactions, and min/max levels. TODO: name the system of record (e.g., ERP inventory module, dedicated WMS).

Bin/location labels, label printer, and barcode/QR scanner for transaction entry, following the standard location-naming scheme. TODO: document the bin-naming convention (e.g., Aisle-Bay-Shelf-Bin) and confirm whether transactions are scanned or manually keyed.

Cycle-count worksheet or count-sheet template, generated blind (no system quantity shown) to avoid bias during counting.

Calibrated counting scale for high-quantity small hardware (screws, terminals, ferrules) where individual counting is impractical. TODO: confirm scale model/calibration interval.

Variance and adjustment log for recording, approving, and closing out count discrepancies.

6.1 Locations & bins

Assign every stocked SKU a single primary bin/location using the standard naming scheme, labeled with SKU, description, and unit of measure; do not store one SKU across multiple unlabeled locations.

Keep free-issue customer material physically segregated in clearly marked locations, never mixed into Blitzpanel-owned bins, per the Free-Issue Material Handling SOP.

When a SKU's primary location changes, update the system record the same day the physical move happens — a location change with no system update is treated as a count-accuracy defect.

6.2 Receiving transactions

Receive incoming stock only after dock inspection and acceptance under the Receiving SOP; post the receiving transaction (SKU, quantity, lot/date code where applicable, destination bin) before the material is put away.

Apply FIFO put-away for date-sensitive stock (e.g., batteries, electrolytic capacitors, adhesives/sealants with shelf life) — new stock goes behind, not in front of, existing stock.

If received quantity does not match the packing slip or PO, hold the discrepancy for Procurement resolution before posting a receipt for the disputed quantity.

6.3 Issuing transactions

Issue material only against a logged transaction referencing a job/work-order number or kitting pull; no stock leaves a bin without a corresponding system deduction.

For job-specific components used on a UL508A-listed build, confirm the part pulled matches the listed/recognized component called out on the released BOM before it is issued; do not substitute an unlisted or different-rated part from stock without engineering sign-off.

Record returns-to-stock (e.g., unused kit material) as their own transaction, and flag any issue that would take a SKU negative rather than forcing a negative on-hand.

6.4 Cycle counts

Classify SKUs A/B/C by value and usage velocity and count each class on its own cadence, with A-class (highest value/velocity) counted most frequently. TODO: define ABC thresholds and count frequency per class (e.g., A monthly, B quarterly, C annually).

Generate a blind count sheet (system quantity hidden) for the day's scheduled bins, and count a rolling sample year-round rather than only around the annual physical count.

6.5 Physical / full stock counts

Conduct a full physical count of all stocked SKUs at least annually. TODO: confirm required physical-count frequency and whether it must align with the fiscal year.

Freeze (or clearly cut off and log) receiving and issuing transactions during the count window so the count reflects a single point in time; use two-person count teams for high-value/high-risk SKUs.

6.6 Reconciliation & adjustments

Compare counted quantity to system on-hand quantity for every counted SKU and recount any SKU whose variance exceeds the defined tolerance before posting an adjustment. TODO: define variance tolerance that triggers a mandatory recount.

Investigate and record the root cause of confirmed variances (miscount, unlogged transaction, mislabeled bin, damage/scrap, theft) alongside the adjustment.

Route adjustments above the defined dollar/percentage threshold to Finance/Controller for approval; close out every variance with a signed-off adjustment record. TODO: confirm approval thresholds from §4.

6.7 Min/max levels & reorder triggers

Set a min (reorder point) and max (target stock) level for every actively stocked SKU, based on lead time, usage rate, and criticality to production.

Review and adjust min/max levels on a defined cadence to reflect changing demand and lead times, and flag long-lead/sole-source SKUs for a higher safety-stock buffer. TODO: define min/max review cadence and confirm long-lead/sole-source SKU list.

When on-hand quantity reaches the min level, the system generates (or the clerk manually raises) a reorder flag to Procurement per the Procurement SOP.

Bin/location map and SKU-to-location assignment record, kept current as locations change.

Receiving and issuing transaction history per SKU, sufficient to trace where material came from and where it went.

Cycle-count schedule, completed count sheets, ABC classification list, and annual physical count records.

Variance and adjustment log, including root-cause notes, approval sign-off, and current min/max level settings per SKU.

Retention period for inventory transaction and count records. TODO: set retention policy.

Procurement SOP, Receiving SOP, Kitting SOP, Cut List SOP, Free-Issue Material Handling SOP.

UL508A — Standard for Industrial Control Panels; components used on a listed build must match the listed/recognized component basis established at engineering release. TODO: verify exact clause references before citing.

Back to document index