Inventory management in supermarket: control, policies and procedures

Abstract

Inventory management impacts the effectiveness of internal controls, influences operational efficiency, and affects the quality of business decisions. The purpose of the study was to analyze the inventory management policies and procedures of a supermarket and verify the level of compliance with current accounting standards to optimize stock control and minimize costs. A mixed-method approach was applied, using surveys and analysis based on the COSO I model to evaluate internal control and its inherent risks. The use of two inventory software programs was evident, with a lack of data on their effectiveness, absence of demand analysis, costs, and informal rotation of perishable products without the FIFO system. These shortcomings lead to excesses or shortages and associated risks. The COSO I model recorded an average level of compliance with 73.72% confidence and 26.28% control risk, with areas for improvement in risk assessment (62.86%). The inherent risk was 35%, influenced by errors in records, coding, and health risks, while the detection risk, although acceptable (10.87%), lacks guidelines to strengthen control. The company recognizes the importance of inventory in decision-making (94%). The adoption of a structured FIFO system, continuous training, historical demand analysis, and COSO I audits is essential to optimize management, reduce losses, and adapt the supermarket to a dynamic market, leveraging real-time technologies and rigorous procedures to increase efficiency and customer satisfaction.