Policies and Procedures

Inventory Management Policy

1. Overview

The Inventory Management Policy at BEC Arabia defines the processes, responsibilities, and controls for managing inventory across all projects, warehouses, and operational sites. This policy ensures that all inventory transactions are accurately recorded, materials are efficiently received, stored, issued, and transferred, and stock levels are maintained in alignment with business and operational requirements.

For more details on specific inventory functions, refer to:

• Inventory Control Procedures

• Stock Adjustments & Discrepancies

• Inventory Issuance Process

2. Scope

This policy applies to all inventory management activities within BEC Arabia, including:

• Projects Material Store – Management of raw materials, bulk consumables, and construction supplies.

• Workshop Store – Storage of spare parts and maintenance-related materials.

• Assets Store – Handling of fixed assets, tools, and project-specific equipment.

• Inventory Audits & Compliance – Ensuring stock accuracy through cycle counts and audits.

3. Inventory Management Principles

3.1 Inventory Issuance Process

• All inventory items must be issued based on approved material requests.

• Issuance of stock must align with the Material Requisition Process and project-specific needs.

• Urgent or special material requests must be reviewed by the Inventory Manager and Project Team before approval.

• For subcontractor withdrawals, refer to the Subcontractor Material Authorization Process.

3.2 Inventory Levels & Reordering

• Minimum Stock Level – The lowest quantity that must be available at all times to prevent shortages.

• Maximum Stock Level – The highest allowable quantity to avoid overstocking and excess storage costs.

• Reorder Level – The threshold at which new procurement requests must be initiated.

• Stock levels must be monitored regularly in the Inventory Monitoring & Reporting section.

3.3 Stock Adjustments & Discrepancies

• Regular stock counts must be performed, and any discrepancies must be reported immediately.

• Any stock adjustment must be documented and approved by the Inventory Manager and Finance Department.

• Discrepancies exceeding predefined thresholds require investigation and corrective action.

For details on handling stock adjustments, see Stock Adjustment Procedures.

3.4 Inventory Compliance & Updates

• All employees involved in inventory management must follow standard operating procedures (SOPs) as outlined in the Inventory SOPs.

• Compliance audits and periodic reviews must be conducted to ensure adherence to policies.

• Updates to this policy must be formally approved by BEC Arabia senior management.

4. Non-Compliance & Consequences

Failure to adhere to this policy may result in:

• Operational delays due to inaccurate stock levels.

• Financial discrepancies affecting project budgets and procurement planning.

• Corrective actions, including retraining, system improvements, or disciplinary measures.

To report policy violations or request clarifications, refer to the Inventory Policy Compliance & Reporting section.