IT
ALL
ADDS
UP
Cindy Ritzman and David Boardman,
Stockpile Reports, USA,
make the case for
more frequent physical inventory counts.
H
ow many hammers and screwdrivers are
currently on the shelves at any local hardware
store on any given day of the year? The store’s
management has an accurate count of every
product type. Products arrive in neat, countable boxes
tagged with codes or RFID devices and are subsequently
sold using bar code scanners. The ongoing perpetual
inventory of those items is highly accurate, due to the
traceability or measurability of the products. Accurate
perpetual inventory enables stores to make data-driven
decisions that improve business operations and reduce
financial write-offs.
Unfortunately, accurate perpetual inventory is much
harder to realise in the mining industry. This is because
mining products do not arrive neatly in boxes nor do they
get tagged with barcodes. It is hard to perform an inventory
count as products are stored in all shapes, sizes and
environments. Products also change weight based on
moisture and compaction and can be ‘lost’ through erosion
and floor loss. Extensive effort goes into maintaining and
managing conversation factors for converting yards to
tonnes. Producing and selling in tonnes is also carried out,
March 2016
|
World Coal
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65
