Conduct a Chemical Inventory Audit Before You Launch SDS Software

What good is the best software if the data it manages isn’t accurate? That’s the issue a lot of safety professionals face when rolling out new SDS management systems. They’re investing in software that’s built to organize, automate, and simplify, but it can only do that if the input data is clean. And when it comes to chemicals in the workplace, that data is only as good as your last inventory audit.

Before your SDS software can start solving problems, you need a full, correct list of every hazardous chemical on site. This article breaks down the first step that makes the rest work: the chemical inventory audit. We’ll walk through how to do it right, who needs to be involved, and what common mistakes to avoid.

Why Chemical Inventory Matters

OSHA’s Hazard Communication Standard requires every employer to keep an up-to-date list of hazardous chemicals in the workplace. In an emergency, responders need to know exactly what chemicals are on site. Your team needs to understand which materials are flammable, reactive, or toxic. And if your inventory is incomplete or outdated, even basic training may fall short.

A detailed chemical inventory is more than a list, it’s the foundation for your entire SDS system. Every piece of information you collect plays a role in helping you stay compliant, respond faster, and make smarter safety decisions. Here’s what you’ll want to include during the inventory.

• Chemical or Product Name: Use the name listed on the label or SDS, not internal nicknames or abbreviations. This helps ensure consistency across departments and avoids confusion when cross-referencing with SDS libraries or during inspections.
  

• Manufacturer Information: Include the full name of the manufacturer or supplier. This makes it easier to track down SDSs and order replacements if needed. It also helps differentiate similar products from different sources.
  

• Size and Type of Container: Record the volume, weight, or unit of measure, along with the container type, drum, bottle, tank, etc. This is critical for storage assessments, spill planning, and hazard evaluations.
  

• Quantity on Hand: Note how much of the chemical is present during the audit. This helps track usage trends, identify overstock issues, and evaluate exposure risk.
  

• Hazard Classifications: Use the classifications from the SDS, including whether the material is flammable, toxic, corrosive, or reactive. This information feeds into risk assessments and training needs.
  

Storage closets, utility rooms, and contractor carts often hide forgotten chemicals. Facilities with multiple shifts or rotating staff may also accumulate mystery containers over time. That’s why routine audits are essential, one-time cleanups won’t cut it.

Once you understand the importance of the data, the next step is learning how to gather it correctly.

Step-by-Step: How to Conduct a Chemical Inventory Audit

A strong chemical inventory isn’t built in a day, it’s the result of a well-planned, detailed audit. Here’s how to do it right from the start.

1. Plan the Audit

Start with clarity. Define which areas are in scope, this could include labs, mechanical rooms, outdoor sheds, or mobile storage units. Assign a lead for each area and create a checklist to keep things organized. If your site has a history of departmental silos, now is the time to bring everyone to the table. Involving the right people early prevents missed areas and last-minute surprises. Review past inventories if available, and build on what worked before.

2. Walk the Site

This is your fact-finding mission. Don’t rely on assumptions or old spreadsheets. Physically verify what's present, even if you "think" you know what’s in an area. Use tools that make it easy to collect data on the go, many safety teams use mobile forms or tablet-based apps that connect directly to their EHS systems. Labeling photos with product names and storage locations can also help during review.

3. Document Each Chemical

Consistency beats speed here. Choose a standard format and stick to it. Whether you're using a spreadsheet or an app, make sure all auditors collect the same details. Train your team on what to record and how to label unknowns. If a container has a faded label or no label at all, tag it for further investigation and do not skip over it. Unidentified chemicals are a red flag during audits and inspections.

4. Verify SDS Availability

Cross-check every item with your SDS database. If something is missing, note it immediately. Some chemicals may have older SDSs from previous suppliers, so verify that the version on file is correct and up to date. This step also highlights which vendors you may need to contact for new documentation. Many SDS systems, like HSI’s, offer automated matching or alerts when SDSs are outdated, saving time and reducing gaps.

5. Organize and Review

Before uploading anything, double-check your data. Duplicate entries happen often when the same chemical is stored in different areas or under different names. Standardize terminology across departments to avoid clutter. If you’re unsure about an entry, consult with a chemical safety expert or vendor. It’s better to pause and verify than to load incorrect data into your system.

6. Compile Your Inventory

Once verified, format your inventory for upload into your SDS software. If you’re using the HSI EHS System, the system helps streamline this process with smart import tools and user-friendly templates. Always keep a backup copy of the inventory, digitally and physically. Store it somewhere secure but accessible for auditors, safety committees, and emergency teams.

Once your inventory is complete and accurate, you’re in a great position to implement SDS software that works as intended.

Connecting the Audit to SDS Software Implementation

A chemical inventory audit isn’t just busywork, it’s a critical piece of the SDS software puzzle. When the data is clean and accurate, software can do its job:

• Auto-match products to the correct SDS
  

• Trigger alerts for missing documentation
  

• Organize training content by chemical hazards
  

• Support compliance reports and inspections
  

But if you skip the audit or rush through it, you’re just moving problems into a digital space. That leads to frustration, false confidence, and regulatory risk. That’s where HSI comes in. Our tools are designed to make SDS management easier from day one, and even more powerful over time.

How HSI Can Help

Getting your chemical inventory under control doesn’t have to be a hassle. HSI’s Chemical Management System is built to simplify the entire process, starting with how you capture and organize your data.

You can easily:

• Enter and update your chemical inventory
  

• Match each product with the right SDS
  

• Get alerts when documents are missing or out of date
  

• Generate reports instantly for audits, inspections, or internal reviews
  

But that’s just the beginning. Because our SDS solution is part of the larger HSI EHS System, it connects the dots across your safety program. That means you can tie chemical data directly to training records, incident reports, inspections, and corrective actions, all in one place.

Whether you’re running a single site or managing dozens of locations, HSI’s tools scale with you. And thanks to our built-in AI, our system will soon help to stay a step ahead, flag risks, recommend next steps, and reduce the time spent chasing down paper trails.

Ready to get started? Let HSI help you build a system you can trust. Contact us today to simplify your chemical tracking, strengthen your safety program, and make SDS management something your team won’t have to stress over.