STANDARD OPERATING PROCESS

STOCK TAKE PROCEDURE

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 PROCESS

STOCK TAKE PROCEDURE

Table of Contents
1. INTRODUCTION ............................................................................................................................................... 3
2. OBJECTIVE ...................................................................................................................................................... 3
3. SCOPE .............................................................................................................................................................. 3
4. OPERATING PROCEDURE ............................................................................................................................. 4
5. ROLES AND RESPONSIBILITIES .................................................................................................................. 9
6. ROLES AND RESPONSIBILITIES ................................................................................................................... 9
7. COMPLIANCE .................................................................................................................................................. 9
8. RELATED DOCUMENTS ................................................................................................................................. 9
9. DOCUMENT CONTROL INFORMATION ....................................................................................................... 10
DOCUMENT REVISION HISTORY ....................................................................................................................... 10

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 PROCESS

STOCK TAKE PROCEDURE

1. INTRODUCTION
This stock take procedure is intended to provide guidance for the counting and recording of inventory within the
group.

2. OBJECTIVE
This procedure is intended to provide guidance for the counting and recording of inventory within the group.

The objective of this standard operating procedure is to ensure that:

• Inventory is counted at regular intervals during the financial year Inventory quantities are
accurately recorded (within Oracle)
• Obsolete and damaged stock has been identified and appropriately managed Surpluses and
shortages are timeously recorded and approved

3. SCOPE
This procedure is applicable to:

• all manufacturing facilities,

• engineering and satellite engineering stores/ consumable stores
• Tiger managed warehouses/ distribution centres
• third party manufacturing facilities and
• all goods in transit not yet delivered to any of the afore mentioned sites.

This procedure applies to all categories of stock including:

• raw materials,
• packing materials/packaging,
work in progress,
• finished goods, retail stock,
quarantined stock, consignment
stock.
• rebate stock,
• miscellaneous stores
(consumables)
• third party stock
• rework stock
• engineering spares.

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 PROCESS

STOCK TAKE PROCEDURE

4. OPERATING PROCEDURE
4.1 STOCK TAKE PROCEDURE WORKFLOW

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 PROCESS

STOCK TAKE PROCEDURE

4.1.1 STOCK TAKE PROCEDURE STEPS

# Activity Responsible Person

1. A stock count instruction document (or pre-count instruction meeting) must Supply Chain
be circulated to the relevant individuals participating in the stock count Representative
prior to commencement. supervising the count

2. Stock count preparation should include: Storeman

• Removal of all previous count stickers/tags
• Stock is neatly arranged and accessible
• Item codes, expiry dates and lot numbers should be clearly visible
and legible
• Stock not to be counted should be clearly demarcated and marked
“do not count”

3. Cut-off procedures should include/ ensure that:

• All invoices and credit notes up to cut off must be processed (i.e., all Production clerks/
pick releases / ship confirms and RMAs processed)
Receiving clerks/
• All GRVs and WIP must be completed. The WIP report must be run
prior to the commencement of the count Sales order clerks
• Invoiced stock not yet delivered to be marked as “Do not count” /
removed from stock take area.
• If applicable, run Update Shipping manually (without parameters)
• All completed batches to be closed /all production must be processed
in Oracle
• Clearing of all open/pending transactions in Oracle (run “Transaction
Open” interface/ pending transaction reports)
• Print report/ screen shot once cleared
• Ensure that stock received has been receipted on the system – take
note of the last receipt number
• Ensure that all goods in transit physically received /despatched has
been processed
• Ensure that all stock requiring quality checks (where the stock is not
yet part of Tiger’s inventory) is specifically identified and noted on the
checklist.

4. It is the responsibility of the Plant Manager (Manufacturing) or Plant Manager for

Warehouse Manager (Distribution) to identify any goods in transit/ on Category/ Warehouse
water/ in bonded warehouses/ at third parties where the stock is owned Manager for Distribution
by Tiger and to make specific arrangement for such items to be counted Centres
monthly or otherwise verified.
5. Stores are inspected for compliance and cut-off records examined, check Cost Accountant/ Cost
list updated. Analyst

6. There-after a cycle count / snapshot must be created for all sub-

inventories pertaining to the site being counted. The following naming

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 PROCESS

STOCK TAKE PROCEDURE

# Activity Responsible Person

convention is to be used for cycle counts / snapshots created: Supply Chain

Site_Sub-inventory number_dd_mnm_yy. representative
Creation of snapshot/ cycle count cannot be back-dated and must be supervising the count
created before the last day of the current period. (Launching of snapshot/
cycle count variances may be back-dated).
7. After the creation of the snapshot / cycle count no inventory transactions
are to be processed on the system until after the count has been All personnel
completed.
8. No physical stock movements are permitted between departments once the Manufacturing
count has commenced. Production may not continue during the count Manager/Warehouse
process. Manager
9. Snapshot status report to be run to ensure that all snapshots/ cycle
counts created have been approved and launched and that the correct
Cost Accountant
GL Account has been used. Checklist updated. No snapshot is required
for active sub-inventories with no stock.
Results must kept on record in the stock take file.
For inventory in transit or otherwise in the process of delivery (eg being
stored at a bonded warehouse) reports must be obtained from the Freight
Forwarders confirming stock on hand at their warehouses, and from the
Tiger GTS system to confirm stock on the water
10. All count sheets are to be printed, dated, numbered/referenced, captured Supply Chain
in the stock count register and distributed to counters. This applies to Representative
blank and re-count sheets as well.
Count sheets must be collected by the stock controller or counter or other
designated person. Only the counter to manage the count sheets of his
count area.

11. Count teams (consisting of 2 independent people) to sign register on

receipt of stock sheets. Counters
Where possible and circumstances allowed a count team can consist of 1
individual but there has to be 2 count teams in all instances.
12. Count sheets to be completed in ink unless temperatures do not permit
(ie: Pencils may be used when counting items in cold storage). Counters
All alterations are to be done in ink and initialled by all parties
concerned.
Pens to be provided to all staff for stock take.
13. Different colour stickers or tags (weighed items) are to be used by Counters
counters to differentiate between stock counted and not counted. This
helps to prevent counts being duplicated or omitted. Stickers / tags to
be provided to all staff for stock take

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 PROCESS

STOCK TAKE PROCEDURE

# Activity Responsible Person

14. If applicable, silo counts are to be performed as follows: Designated Designated Silo Count
count team record dip readings and/or laser readings on the count sheet. team
These readings are then input in the electronic “Silo Reconciliation file”
residing on the Intake Managers computer. (The integrity of this Cost accountant
electronic file is the responsibility of site management and is required to
ensure the accuracy of the volume of each silo as well as the hectolitre
mass of the grain stored in each silo.) The cost accountant must obtain
the “Silo Detail Report” from the Tiger Grain System and compare the
average hectolitre mass to the ones recorded in the “Silo Reconciliation
file”. The resultant mass that appears on the electronic reconciliation file
is the mass that is recorded as closing stock in Oracle.

15. On completion of count, counters to initial/ sign each page of the sign
count sheets and sign in the sheet on the count register. Counters to Counters
initial/sign only their count sheets. No need to initial/sign the count sheets
of the other team. Each area to have their own count register.
Counts sheets to be received by the count supervisor, ensure that all
16. pages are accounted for and cancel blank lines on each page. Count
sheets are then handed over to the capturing team. Cost Accountant
Counters to ensure that all pages are accounted for and cancel blank
lines on each page. Counts must be tallied up by the counters and signed
as evidence of performing the function. Count sheets are then handed
over to the capturing team.

17. Capturer to sign register for count sheet received and capture data into
Oracle / excel (the use of Data Loader is permitted). Data Capturers
Each count area or site must have their own stock count register and
must be attached to the stock count documents
18. Cost accountant/ cost analyst to inspect register and counts sheets for
compliance and sign off the checklist. Cost accountant/cost analyst to spot Cost Accountant/ Cost
check casting is accurate. Analyst
19. Cost accountant/ cost analyst to perform sample checks on counts: Cost Accountant/ Cost
• Prior to the count, the cost accountant must determine a sample of Analyst
SKUs to be checked during the count. Finance Director
• All SKUs must be selected over a 2 year cycle (
• For the SKUs selected, the cost accountant must check the count
sheets to the recorded stock count quantities for all locations i.e., for
a complete count of that SKU.

20. Count 1 and 2 are compared and a third count requested where
necessary. If not resolved a 4th count is to be conducted with a manager
present. (If 2nd count is not practical then the 1st count should be
compared to theoretical stock and recounts done where necessary). Representative
supervising the count
The count teams to compare their counts sitting on opposite sides of a
desk, two meters apart from one another. When recounts are needed,
above mentioned steps must be followed repeated.

21. Once count quantities are captured into Oracle and confirmed to be Supply Chain
correct, the Plant Manager/ Warehouse Manager is to be notified correct, representative
the Plant Manager/ Warehouse Manager is to be notified supervising the count

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 PROCESS

STOCK TAKE PROCEDURE

# Activity Responsible Person

The Plant Manager(Manufacturing) or Warehouse Manager (Distribution)

22. Plant Manager for
is to approve the snapshot/ cycle count in Oracle and launch the inventory
Category/ Warehouse
adjustments.
Manager for Distribution
23. The (Manufacturing) or Warehouse Manager (Distribution) or his/her Plant manager for
designate are responsible for approving the adjustment. Category/ Warehouse
Manager for Distribution

Stock listing printed and agreed to final count values. Checklist updated.
24. Cost Accountant/ Cost
Analyst

25. Material variances are to be investigated and a consolidated variance Supply Chain
report including commentary is to be compiled using the standard representative
template provided. The consolidated variance report is to be distributed supervising the count
for electronic approval following the count. Recipients are
to include the authorised signatories (only those applicable as per section
5.6)
Authorised signatories are to respond electronically within 48 hours of
26. receiving the consolidated variance report. Authorising signatories

Should clarity / more information be required this should be provided

27. Supply Chain
within 48 hours of the request representative
Checklist to be signed off by the Cost Accountant/ Cost Analyst, Supply Cost Accountant/ Cost
28. Chain Representative supervising the count and Plant manager for Analyst
Category/ Warehouse Manager for Distribution Supply Chain
Representative
Plant manager for
Category/ Warehouse
Manager for Distribution
29. The Stock accuracy analysis report / month end report must be reviewed
Plant manager for
and signed by the Plant manager for Category/ Warehouse Manager for
Category/ Warehouse
Distribution on conclusion of the stock count. The Finance Director must
Manager for Distribution
review and sign the report before the next month end reporting
Finance Director
submission to Group (usually by work day 7).
Note that ongoing instances of nil variances should be investigated and
not accepted as accurate as these may indicate inadequate counting.
Furthermore, the plant capacity must be considered when reviewing the
quantities on hand as a check for reasonability.
Signature on this report evidences that both the Plant Manager/
Warehouse Manager and the Finance Director confirm the count is
accurate and have conducted sufficient checks of the count procedures
to confirm this.
30. The variance report is to be agreed to the month-end report (GL) by work
Cost Accountant
day 5 of month-end. All differences must be investigated and cleared
All final count sheets, registers, cut-off documentation and reports to be Supply Chain
31.
filed together and retained at the unit for audit purposes in line with the representative
document retention policy. Note that where the final count sheets have
been signed it is not necessary to retain the rough count sheets.

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 STANDARD
OPERATING
PROCESS
STOCK TAKE PROCEDURE

5. GUIDELINES
5.1 It is recommended that stock counts take place every two months. At a minimum stock counts
should be carried out every quarter.
5.2 A timetable detailing the scheduled counts for the financial year will be issued to each business unit.
Any changes to the timetable must be communicated to the Financial Director and approved,
following which an updated timetable will be issued.
5.3 It is recommended that the count be carried out by independent personnel (persons not involved in
any inventory-related transactions). Should there be insufficient personnel to comply with this
recommendation, special permission is to be obtained from the Financial Director.
5.4 A request to write-off any obsolete/ expired / damaged stock identified should be made soon after the
completion of the count. Once authorised the write-off should be immediately processed, and stock
appropriately disposed of/ scrapped before the next scheduled count commences.
5.5 The following authority levels will apply in respect of the consolidated variance amount per (Oracle)
site:

Amount Position

<R 50 000 Plant Manager or Warehouse Manager or Distribution Manager

Finance Director and

Managing Director and
>R 50 000
Operations Director (if applicable) and
Logistics Director
>R 1 500 000 Chief Financial Officer

6. ROLES AND RESPONSIBILITIES

6.1 It is the responsibility of all users to know and adhere to this Standard Operating Procedure (SOP).
6.2 The Finance department has direct responsibility for this SOP, for maintaining it and for providing
advice and guidance on its implementation.
6.3 All business unit managers are directly responsible for implementing the Standard Operating
Procedure within their business areas, and for adherence by their staff.

7. COMPLIANCE
7.1 Users are required to familiarise and fully comply with this Standard Operating Procedure.
7.2 Any User who fails to comply with the provisions as set out above or any amendment thereto, may be
subject to appropriate disciplinary or legal action.
7.3 Tiger Brands’ policies, standards, procedures and guidelines comply with legal, regulatory and
statutory requirements.
7.4 This Standard Operating Procedure may be amended from time to time in the sole discretion of Tiger
Brands

8. RELATED DOCUMENTS

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This document contains confidential information, which is proprietary to or licensed by Tiger Brands. No part of its contents may be used by, copied by, disclosed or conveyed to any
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 STANDARD
OPERATING
PROCESS
STOCK TAKE PROCEDURE
8.1 Stock Take Timetable
8.2 Count Sheet Register
8.3 Checklist
8.4 Consolidated variance report template
Documents available on request

9. DOCUMENT CONTROL INFORMATION

Document Title Stock Take Procedure
Document Owner Finance Director Group and SSC
Classification Internal Use Only - Tiger Brands Confidential
Release 4.0
Live Date 24 June 2024

DOCUMENT REVISION HISTORY

Version Date Updated By Approved By Change Detail
1.0 28 Nov Heinrich Jantjies / Create Document
‘17 Abigail Moodley
2.0 07 June Abigail Moodley FSSC: Revise Dates
‘18

3.0 21 July Michelle Erasmus Operational updates

2023
4.0 21 June Michelle Erasmus Removal of FSSC responsibility
2024 following restructure plus
refinement to stock count sheets
retention and count document
sign off.

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 PROCESS

STOCK TAKE PROCEDURE

ANNEXURE A
Stock count confirmation memo

STOCK COUNT CONFIRMATION MEMO

Manufacturing Unit :

Month :

To :

I hereby confirm the following:

→ A full stock count was performed

Date from……..…………… Date to ….....…………..…

→ A stock cycle count was performed

→ All the active sub inventories were included in the stock count

→ All the necessary stock adjustments identified during the stock count have been
updated on the Oracle System

→ The stock count was performed per the requirements of the Standard Operating
Procedure (SOP) guidelines

→ All the necessary documentation as required by the SOP has been retained on file
and is available for audit purposes

Signed : Signed :

Name :

Job Title :Plant Manager

Date : Date :

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