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In a previous job, I did some stock taking. Quarterly, without trained people nor procedures instead of a proper cycle coint, done double blind, by a dedictaed

by hef19898 3y ago

In a previous job, I did some stock taking. Quarterly, without trained people nor procedures instead of a proper cycle coint, done double blind, by a dedictaed team of people (I didn't stay long at that job). Some of the inventory we had to account for, and funny enough most of it was almost correct accounting / revenue shennenigans nothwothstanding, was stored in a huge warehouse that held aerospace grade aluminium and titanium ingots. Thousands of tons of those. All being traded on some exchanges, hardly ever leaving said warehouse. Propably nobody would ever nice what it was until, if ever, the ingots were to be used to produce bars and other raw materials for production. And even if it wasn't aluminium or titanium by then, propably enough money was earned to just replace it with the real stuff and not worry.

KennyBlanken 3y ago
I've read this four times and it feels like I'm having a stroke trying to understand it. Edit: I think they're saying that they audited a metals warehouse and that nobody actually checked that the ingots were what they claimed to be. That's probably because the ingots came from trusted sources and/or were checked via things like mass and x-ray spectrography machines before being admitted into the system.
- I_Am_Nous 3y ago
  My main takeaway is that ownership of those metals isn't translated into them being used for manufacturing, and since they generally aren't used for manufacturing and they aren't being moved when ownership transfers, there is very little reason to audit them. So if they eventually DO end up being purchased for manufacturing but upon inspection are found to be short stocked or it's the wrong material entirely, the commenter was speculating that replacing the fake material with the real thing would be covered somehow either by the warehouse collecting storage fees or insurance.
  - hef19898 3y ago
    It was avfun experience, we audited other stuff stored at the same warehouse (the reasons for that are good case study on how not to run logistics and warehouses). And I did raw material procurement, bars, plates and such, for aerospace before, so seeing the ingots sitting in a warehouse being bought and sold without being moved at all was interesting see. And we litterally thousands and thousands of ton of that stuff in a warehouse in one of the most expensive warehouse locations you can think of.

KennyBlanken 3y ago

I've read this four times and it feels like I'm having a stroke trying to understand it. Edit: I think they're saying that they audited a metals warehouse and that nobody actually checked that the ingots were what they claimed to be. That's probably because the ingots came from trusted sources and/or were checked via things like mass and x-ray spectrography machines before being admitted into the system.

I_Am_Nous 3y ago
My main takeaway is that ownership of those metals isn't translated into them being used for manufacturing, and since they generally aren't used for manufacturing and they aren't being moved when ownership transfers, there is very little reason to audit them. So if they eventually DO end up being purchased for manufacturing but upon inspection are found to be short stocked or it's the wrong material entirely, the commenter was speculating that replacing the fake material with the real thing would be covered somehow either by the warehouse collecting storage fees or insurance.
- hef19898 3y ago
  It was avfun experience, we audited other stuff stored at the same warehouse (the reasons for that are good case study on how not to run logistics and warehouses). And I did raw material procurement, bars, plates and such, for aerospace before, so seeing the ingots sitting in a warehouse being bought and sold without being moved at all was interesting see. And we litterally thousands and thousands of ton of that stuff in a warehouse in one of the most expensive warehouse locations you can think of.