Inventory Management 

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Objective

To establish a transparent and secure system for managing jewellery inventory, ensuring proper tracking, storage, movement, and reconciliation of all stock items (gold, diamonds, gemstones, and finished jewellery).

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Scope

This SOP applies to all inventory staff, storekeepers, sales executives, and managers who handle stock at the retail store, workshop, and warehouse levels.

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Responsibilities

- Inventory Manager – Oversee stock management, implement policies, ensure daily reconciliation.
- Storekeepers/Warehouse Executives – Maintain stock registers, check receipts and issues, update system entries.
- Sales Executives – Ensure accurate billing and stock deduction during transactions.
- Security In-Charge – Monitor stock movement with CCTV and access controls.
- Auditors/Internal Control Team – Conduct stock verification and audits periodically.

 

Policies & Guidelines

- All stock movement must be recorded in the Inventory Management System (IMS/ERP).
- No jewellery item should move in or out without an authorized gate pass/slip.
- Mandatory CCTV coverage in inventory rooms, counters, and strong rooms.
- Surprise checks and periodic audits are compulsory.
- Damaged, returned, or exchanged items must be documented and authorized.

 

Procedures

 

• Stock Receiving

     - Verify supplier invoice, weight, and certification.
     - Cross-check with purchase order before acceptance.
     - Record stock in IMS and assign unique barcodes/tag numbers.
     - Store securely in vault/strong room.

• Stock Issuance (to showroom/workshop)

     - Prepare issue slip authorized by Inventory Manager.
     - Handover stock in presence of security/CCTV monitoring.
     - Update IMS immediately.

• Sales & Billing

     - On every sale, stock must be auto-deducted from IMS.
     - Sales executive must hand over sold item to cashier only after billing.
     - Customer returns/exchanges to be verified and recorded.

• Daily Reconciliation

     - End-of-day stock check against system balance.
     - Any discrepancies must be reported to the Inventory Manager immediately.

• Stock Transfer (Store ↔ Warehouse ↔ Workshop)

     - Stock transfer request form to be approved by Manager.
     - Transfer must be documented with transport security and acknowledgement at both ends.

• Stock Audits

     - Weekly internal verification by Inventory Manager.
     - Monthly audit by finance/internal audit team.
     - Annual statutory audit with physical stock check.

• Handling of Defective/Damaged Items

     - Document defect with images and weight.
     - Seek approval for re-polishing, repair, or melting.
     - Update IMS accordingly.

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Documentation & Records

 - Stock registers and IMS reports.
  - Supplier invoices, gate passes, and transfer slips.
  - Audit reports and reconciliation statements.
  - Customer return/exchange records.

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Review & Updates

This SOP must be reviewed annually by the Inventory Manager in consultation with the Finance & Security departments. Updates to be made as per industry standards or regulatory requirements.