Monthly Inventory Review Checklist for Planners

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10 critical items still open - these are the highest-risk gaps.

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Planning parameters

Review parts with planned lead time differing from recent receiptsCRITICALReview reorder points on A items against recent demandCRITICALCheck safety stock on parts that stocked out in the past monthCRITICALConfirm lot sizes and order multiples still match supplier termsCheck MRP type and planning flags on newly released partsReview parts with parameters set to zero that carry demandLook for parts with manual overrides older than 90 days

Stock levels and excess

List parts above maximum stock and decide actionCRITICALList parts with no movement in the last 12 monthsCheck days of supply on the top 20 parts by valueCRITICALReview open purchase orders on parts already overstockedCRITICALCheck aged stock against reserve policy with financeLook for stock held in the wrong location or statusReview customer-owned and consignment stock separately

Accuracy and counts

Compare cycle count completion with the planCRITICALReview count variances by reason codeCheck negative stock records and clear their causeCRITICALCheck for open receipts not put awayCheck goods issued without matching order referenceConfirm all adjustments above limit have approval

Suppliers and open orders

Review past due purchase orders by supplierCRITICALCheck promised dates updated for all expedited linesReview blanket orders nearing expiry or exhaustionCheck suppliers with repeated late deliveryCheck incoming quality rejections affecting supplyConfirm supplier lead time changes are in the ERP

Reporting

Update inventory turns and days of supplyUpdate service level and stockout countCRITICALReport excess and obsolete exposure to financeRecord actions and owners from this reviewArchive this checklist with the month's date

Aim to tick every critical item each month. Items you cannot complete signal a data or process gap worth fixing before next month.

One-page inventory health view

Optional: a short review of building the monthly checks as a single ERP-driven report.

Optional. The tool and every export work without this. No spam.

How to run the review

Block out two or three hours at the same point each month, ideally after month-end close when numbers are final. Work through each group in order and tick items as you complete them. Note actions on the spot, with an owner and a date. Critical items are the ones most likely to cause a stockout or a write-down, so do not skip them when time is short.

Why these groups

The five groups follow how inventory problems actually arise. Parameters set the plan; stock levels show whether the plan is working; accuracy tells you whether the numbers are true; suppliers explain why the plan fails; reporting shows leadership the result. Reviewing them in this order means each step informs the next, for example finding a lead time error before you judge reorder points.

Parameters first, because they drive everything
Excess alongside shortage, not separately
Accuracy before conclusions about stock

Using ERP reports

Most items map to standard reports: MRP exception lists, stock overview and aging reports, cycle count variance reports, open purchase order and past due reports, and inventory valuation. Save these as variants or saved searches so the review starts from the same data every month. Where a check needs a manual export, consider automating it.

Common mistakes

Reviewing only what is short, and ignoring what is excess, is the classic one; both cost money. Another is making changes without recording them, so no one knows why a parameter moved. And skipping the review in busy months is exactly when drift happens.

Frequently Asked Questions

How long should the review take?

Two to four hours for a plant with a few thousand active parts if reports are ready. It takes longer the first time while you set up saved reports. Focus on A items and exceptions.

Should this be monthly or weekly?

Monthly suits parameter and excess reviews. Shortages and past due orders need daily or weekly attention. Use this checklist monthly and the shortage log for daily work.

Who attends?

The planner leads. Invite a buyer for supplier items and finance for reserves. Many plants do the first half alone and the second half in a short meeting.

What do I do with the findings?

Record each as an action with owner and date, review last month's open actions first, and report the trend to your supply chain manager. Repeated findings point to a process cause.

If the review takes a full day because the reports are scattered, we can consolidate it into a single view from your ERP data. Ask for a review.

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Planner Monthly Inventory Health Review Checklist