Purchasing requests are controlled and started by a computer system that tracks the inventory level and purchasing requests seem to be approved by the computer instead of being checked and approved before it is made available to the clerks in the inventory control department who assume that it is correct. Unnecessary items may be requested by the computer when it tracks that item is in shortage which can lead to the ordering of unnecessary items due to the purchasing request not being approved by the department’s manager.
2. Inventory is not counted physically rather it is counted by the computer which tracks the level of inventory, overtime the inventory records will probably become inaccurate and will need to be physically counted, computers are also unable to account for the possibility of theft, hence the need for periodic …show more content…
The inventory clerk may add new suppliers to the supplier list without prior approval, and as a result the supplier file may include suppliers that the company doesn’t need to do business with.
4. The selection of suppliers is based upon preapproved vendors that the company has done business with in the past, this can be a hindrance because if new vendors who sell quality products for cheap are in the market, the company will miss out on doing business with the new vendors for a low cost, and in the case that the current vendor list contains suppliers whose products begin to lose quality, the computer may select that supplier and the company will order products of inferior quality.
5. Employees who receive the ordered products tend to unload deliveries without prior verification of an approved purchase order, this wastes time because the company will have to contact the supplier regarding unordered items later on.
6. During busy and hectic times, receiving department staff can fail or forget to inform purchasing regarding errors between the amounts received and ordered, causing a delay or failure in settling errors in a prompt