Collaboration

Inventory Department Collaboration – A 360-Degree Approach

Seamless Integration with Procurement, Logistics, Finance, and Project Teams for Optimal Material Management

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1. Introduction

The Inventory Department at BEC Arabia is a centralized function that collaborates across multiple departments to ensure efficient material availability, supply chain transparency, and project execution alignment. Effective collaboration is essential to:

• Ensure real-time material tracking and prevent supply shortages.

• Optimize procurement strategies, warehouse storage, and inventory turnover.

• Maintain cost control by reducing excess stock and improving demand forecasting.

• Integrate inventory management with digital tracking systems and ERP platforms.

• Enhance compliance with Saudi procurement laws, logistics regulations, and financial policies.

A 360-degree collaboration framework ensures cross-departmental coordination, resulting in accurate inventory control, cost efficiency, and streamlined project execution.

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2. Cross-Departmental Collaboration Model

Collaboration Area	Inventory Responsibilities	Key Stakeholders
Procurement Coordination	Aligns stock levels with procurement planning, supplier deliveries, and material lead times.	Procurement, Suppliers, Finance
Project Execution & Site Inventory	Ensures site teams receive materials on time, preventing project delays.	Project Managers, Site Engineers, Logistics
Warehouse & Supply Chain Management	Optimizes storage, stock movement, and material handling.	Logistics, Warehouse Teams, Quality Control
Financial Control & Cost Optimization	Ensures accurate inventory valuation, cost tracking, and financial reconciliation.	Finance, Audit Teams, Cost Control
Regulatory & Compliance Collaboration	Maintains adherence to Saudi regulations, customs policies, and procurement laws.	Legal, Compliance, Tax Authorities

Benchmark: Achieve 99.5% inventory accuracy through seamless department collaboration.

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3. Collaboration with Procurement & Supply Chain Teams

3.1 Procurement & Supplier Coordination

• Works with Procurement to align material purchasing with stock level requirements.

• Ensures supplier deliveries match purchase orders, preventing overstocking or shortages.

• Tracks lead times, delivery schedules, and supplier performance KPIs.

Key Deliverables:

• Material Delivery & Procurement Planning Reports

• Supplier Performance & Compliance Tracking Logs

Benchmark: Maintain a 98% match rate between inventory stock levels and procurement plans.

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3.2 Just-in-Time (JIT) Inventory & Demand Forecasting

• Implements JIT inventory strategies to reduce storage costs and optimize stock turnover.

• Uses ERP analytics to forecast material demand based on project schedules.

Key Deliverables:

• JIT Inventory Planning Reports & Demand Forecasting Models

• Stock Movement & Warehouse Utilization Optimization Logs

Benchmark: Reduce inventory holding costs by 15% through optimized procurement collaboration.

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4. Collaboration with Project Management & Site Teams

4.1 Site Material Requests & Stock Allocation

• Ensures site teams receive materials on time to prevent project delays.

• Works with Project Managers and Site Engineers to track material consumption rates.

• Implements real-time digital tracking for site inventory levels.

Key Deliverables:

• Site Inventory Allocation Reports & Material Usage Analytics

• Material Requisition & Delivery Performance Logs

Benchmark: Achieve 98% on-time material supply for active projects.

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4.2 Surplus Material Management & Reuse

• Tracks leftover materials from completed projects for reuse or redistribution.

• Works with Procurement and Finance to minimize material waste and resale excess stock.

Key Deliverables:

• Surplus Material Reallocation Reports & Waste Reduction Logs

• Project Material Utilization & Cost Recovery Plans

Benchmark: Reduce material waste by 20% through reuse and redistribution strategies.

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5. Collaboration with Logistics & Warehouse Management

5.1 Warehouse Storage & Stock Movement Coordination

• Works with Logistics to optimize warehouse space and improve storage efficiency.

• Ensures FIFO (First-In-First-Out) and LIFO (Last-In-First-Out) inventory management.

• Implements RFID/barcode scanning for real-time stock tracking.

Key Deliverables:

• Warehouse Stock Rotation Reports & Inventory Turnover Analysis

• Material Handling & Storage Efficiency Optimization Plans

Benchmark: Increase warehouse utilization efficiency by 20%.

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5.2 Inventory Transfer & Logistics Coordination

• Coordinates material transfers between warehouse locations and project sites.

• Tracks logistics lead times, transportation costs, and supplier delivery accuracy.

Key Deliverables:

• Material Transfer & Site Delivery Performance Reports

• Inventory Transit Tracking & Logistics Compliance Logs

Benchmark: Maintain 95% on-time delivery for inventory transfers.

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6. Collaboration with Finance & Cost Control Teams

6.1 Inventory Costing & Financial Reconciliation

• Works with Finance to ensure accurate inventory valuation and cost tracking.

• Ensures ERP financial records match physical stock to prevent discrepancies.

Key Deliverables:

• Stock Valuation Reports & Financial Reconciliation Logs

• Inventory Cost Optimization & Budget Compliance Reports

Benchmark: Maintain a stock variance accuracy rate of 99.5%.

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6.2 Procurement Cost Control & Budget Alignment

• Aligns inventory expenditures with approved project budgets.

• Works with Procurement to prevent excess spending on non-essential materials.

Key Deliverables:

• Inventory Budget Compliance Reports & Cost Control Logs

• Procurement Spend Optimization & Cost Reduction Strategies

Benchmark: Reduce inventory procurement costs by 10% through budget alignment.

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7. Collaboration with Regulatory & Compliance Teams

7.1 Saudi Procurement & Customs Compliance

• Ensures inventory transactions adhere to Saudi procurement laws, VAT regulations, and customs policies.

• Works with Legal Teams to review supplier contracts and import/export requirements.

Key Deliverables:

• Regulatory Compliance & Customs Audit Reports

• Procurement & Supplier Contract Adherence Logs

Benchmark: Zero procurement-related compliance violations.

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7.2 HSE Compliance for Warehouse & Inventory Handling

• Works with HSE Teams to ensure warehouse safety and hazardous material handling compliance.

• Implements fire safety, accident prevention, and environmental protection measures.

Key Deliverables:

• Workplace Safety Compliance & HSE Audit Reports

• Material Handling & Hazardous Goods Safety Training Logs

Benchmark: Zero HSE violations in warehouse operations.

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8. Digital Inventory Collaboration & ERP Integration

8.1 Digital Inventory Management & Real-Time Tracking

Technology	Functionality	Application in Inventory Collaboration
ERP System	Stock Tracking, Cost Management, Procurement Integration	Ensures transparency in inventory levels and procurement alignment
RFID & Barcode Scanning	Automated Stock Monitoring, Warehouse Optimization	Reduces stock discrepancies and improves inventory accuracy
Aconex	Inventory Documentation & Compliance Tracking	Ensures material approvals, supplier documentation & regulatory compliance
Power BI Dashboards	Inventory Analytics & Performance Reporting	Provides real-time inventory performance tracking & cost impact analysis

Benchmark: 100% of inventory transactions must be digitally recorded and auditable.

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9. Conclusion

The Inventory Department at BEC Arabia ensures:

• Seamless collaboration with Procurement, Logistics, and Project Management Teams for optimal material flow.

• Full integration with Finance for inventory cost control and financial reconciliation.

• Compliance with Saudi procurement laws, customs regulations, and supplier contract governance.

• Digital inventory tracking using ERP, barcode scanning, and Power BI analytics for real-time insights.

• Minimization of material waste through surplus reallocation and optimized stock turnover.

By implementing structured inventory collaboration frameworks, BEC Arabia ensures efficient, cost-controlled, and legally compliant inventory operations, supporting successful project execution and supply chain resilience.