1. CUT-OFF PROCEDURE
The cut-off procedure is when you record the last documents issued/entered in the system regarding stock.
- Problem: All items are not receipted and dispatched in the inventory system.
- Solution: List the items and keep the actual physical stock apart that are anomalous.
- Problem: Resources in company not used effectively.
- Solution: Every staff member must have a designated function for the stock count to be successful.
Housekeeping of stock in warehouse
- Problem: Ambiguous locations causing stock to be all over in the warehouse.
- Solution: Design and number locations according to nature and attributes of the items in the warehouse.
4. COUNT SHEETS
Count sheets are used to record quantities.
- Problem: Often, count sheets do not accurately represent the physical stock and locations they are found in.
- Solution: Redesign count sheets, for example by item by location rather than location by item.
5. STOCK VARIANCES
Variance decision making. Decide what to do with write-ons and write-offs. Decide when they are important and when not.
- Problem: High value to high turnover items are often misrepresented.
- Solution: Consider quantities and costs of individual items. Count in order from high value, high moving to low value, low moving.
6. COUNT FINALIZATION
Stock count is complete.
- Problem: Decisions around the big picture of the stock count can sometimes be dragged out.
- Solution: Finalize stock count, make the necessary adjustments, make sure GL balances with physical stock, and investigate the variances after normal business resumes.