IPS Inventory Cycle Count

Below details the IPS Inventory Cycle Count process and controls over Publisher inventory counts.  It should be noted that the operational processes & controls in place for safeguarding and managing Ingram Publisher Services – Jackson (IPS – Jackson) consigned inventory are identical to those applied to Ingram owned inventory.

Inventory cycle counting:

Ingram utilizes an annual cycle count program to ensure the existence and accuracy of on-hand publisher inventory. The requirements of the program are dependent on the type of location. Reserve locations (cartons and pallets) and Active Pick-Library locations (library style shelving with multiple titles) require a minimum of one cycle count on an annual basis. Active Pick-Non-Library locations (flat stacks of a single title) require a minimum of 2 cycle counts on an annual basis. 

The cycle counts are blind counts that are performed throughout the year by Inventory Control Department employees. These employees are highly trained with uniform instructions on the process of cycle counting. Employees utilize scanners to verify the units in the location by scanning each SKU represented in the location and entering the count. Once all counts are entered for a given location, PKMS will notify the employee if the count is accepted or if there is an exception. If an exception is noted, the location is re-counted and if the exception remains, the discrepancy is further researched, and location quantity information is updated in PKMS based on these results.  

On a weekly basis, DC Management is provided with the PKMS ‘YTD Cycle Count Status Report.’ This report details the total locations available in PKMS, YTD locations counted & frequency of counts per location, as well as % of the locations that have met the annual requirements. This report is monitored to ensure all locations are counted in accordance with Ingram’s Cycle Count Policy.

In addition to the annual required cycle counts, there are triggered cycle counts of locations throughout the year. A triggered cycle count is generated by PKMS when a warehouse associate goes to pick units from a specified location but cannot locate the required quantity in the location. The triggered cycle count is conducted of the entire location by either an employee of the Inventory Control Department or a Supervisor, comparing what is in the system to what is on-hand. If there is an exception, the associate will follow the same steps outlined above for annual cycle counts.

Internal Audit:

The Ingram Industries Internal Audit Department performs periodic reviews of the organization’s internal controls, including those related to IPS. In addition, on an annual basis the Internal Audit Department performs independent inventory cycle count observations for a sample of IPS publishers.