Stocktaking Techniques Tips You Should Know
A crucial thing to keep in mind is that the inventory system is not capable of producing correct results if the data entered in it is inaccurate in the first place. So you cannot blame the technology for human error or infiltration. Therefore it is important to employ good labor in the first place and why it becomes so important to handle all this the right way.
For a hassle-lite stock-taking experience, you should consider using technology to help you do so. Stocktaking apps are very common now and vendors such as Orangekloud will help you solve your logistical issues with Orangekloud Stocktake App for your company. Visit their site today.
Next, read this article below by RGIS to find out the different stocktaking techniques available to you.
Different stocktaking techniques available to you
When periodical stocktaking or continuous stock validation is not undertaken then an annual stocktake is essential. Annual stocktaking is completed once a year. In certain instances the warehouse or store may be closed for a few days or the stock count held out of working hours. In other places the receipts and invoices will be suspended until the stocktake is over. Read more here
‘Periodic Stock Count’ can be done monthly, quarterly or half-yearly. It is evaluating the total inventory over one or two days in relation to the amount of stock. It is same as an annual stocktake. This is good for businesses with varying product value. ‘Continuous, Perpetual Stock Count’ is done all through the year. There is minimal impact on the day to day running operations of the business. In this type, variances can be highlighted quickly and thus dealt with. Meanwhile ‘Stockout Validation’ occurs when the stock levels are very low. This type usually takes place by the hands of the staff itself.
No matter which stocktaking method you decide to go for, it is supposed to help you determine your business’s success, calculate your gross profit, identify any stock problems, help you with the pricing strategies, pick up on good and bad sales performances, identify any shortages and help in improving cash flow.
If you own a big warehouse, there are steps you can take to ensure an efficient cycle count in the warehouse. First you will need to recognize and make a list of things that need to be prioritized for counting. Then you will need to see what the counting depends on. Depending on materiality of the inventory you will need to decide on a useful frequency.
Next, read this article below by Jack Rubinger to find out how you can do so.
How to ensure an efficient cycle count in your warehouse
If you are in a business that experiences demand changes based on the seasons, time of year, holidays, or days of the week, then you will want to have an accurate count of those items that are most affected by these factors. You’ll want to know how much of an item you used last time, and how much was left over so you can decide how much to buy this time. Read more here
The idea is to have a system that gives you a walks-through of your inventory in a progressive manner. A good count allows you to adjust your inventory on a timely basis in an effective manner thereby helping you assign tasks properly while being able to handle due dates. A good counting system can help organize the movement and luggage compartment division of stock inside your warehouse. If you do proper planning and research, you can come up with a quick and an inexpensive solution that may consist of many features that will match the portfolio of your business’s needs.
Next, read this article below by Catherine Rohm to find out how you can guarantee accuracy in your counting.
How to ensure inventory accuracy
Inventory can only be maintained effectively with the right processes and with proper inventory management procedures in place. Most inventory problems arise from poor inventory control measures and a lack of proper processes for reporting transactions happening in real time within the warehouse. Read more here
No matter how far technology goes, many businesses are unable to perform essential warehouse operations without some manual help. Inventory accuracy is of vital importance in any business. There are some steps you can take to ensure minimum chances of errors. First, you will need to maintain your warehouse. If everything is in order, everyone will be able to work effectively. Well comprehended signs and labels with well defined multifunctional spaces may help your employees to ease up to their working space, therefore making no mistakes.
The next thing you will need to do is label inventory. This way everyone will be able to find exactly what they are looking for and on time. This means no delays and mistakes. It is essential for those companies who have either a variety of products or more than one warehouse. Along with this you can classify receipt processes and policies. You must use any of the cycle counting methods mentioned earlier in order to handle your inventory the right way.
In conclusion, you need to set clear boundaries for who has access to the inventory stock. Don’t let all the workers mingle with it or there is more chance for inaccuracies. Have a properly trained staff and divide tasks according to their strengths. And most importantly, make use of technology such as stock-taking apps which can greatly improve your efficiency.