Best Practices to Help Decrease Inventory and Supplies Wastage, Research Paper Example

Best practices are essential in the prevention and reduction of wastage, abuse and fraud of inventory and supplies in the work set up. These practices involve tasks to monitor the flow of these supplies the stocking and the use.

One way of reducing these vices is to use a fraud awareness mechanism where the behaviors, which culminate to fraud, addressed before they happen. This practice helps to bring awareness to the staff on practices that are not acceptable as they lead to fraud wastage or abuse.  It is also essential to check the process related to procurement to ensure that it is transparent and appropriate (Lang & Ricciardella, 2001). The control of the procurement process is important to ensure that the supplies and inventory procured are of the right quantity and quality. This is essential to ensure that the items procured do not expire before they are used or that they are of a poor quality and fail to serve the purpose desired.

A proper management information system is also essential to ensure that resources monitored right from acquisition through inventory and in their use. According to Lang & Ricciardella (2001), the system must have an oversight sufficient for the proper control of fraud, waste and abuse of the supplies. It is also essential to ensure that there is visibility of the whole process related to supplies in order to minimize the occurrence of foul play.

In the enhancement of cash flow activities, the necessary measures to have a good forecast of cash flow to facilitate effective planning. Proper cash flow terms become necessary for the proper development of the relationship between the organization and the people paying. The payment system should have discipline in order to improve the cash flow system. Segmenting the cash flow system into categories for easy control and proper monitoring is also essential (Reider & Heyler, 2002).

References

Lang, A. S. & Ricciardella, T. (2001). Preventing fraud: How to safeguard your organization. National Center for Nonprofit Boards.

Reider, R. & Heyler, P. B. (2002). Managing cash flow: An operational focus. John Wiley & Sons.