6 WAYS ON HOW TO EASE PHYSICAL STOCK COUNT

Quick solutions for the typical pain points when you do a stock count.

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.

2. PLANNING

Staff complement

  • Problem: Resources in company not used effectively.
  • Solution: Every staff member must have a designated function for the stock count to be successful.

3. WAREHOUSING

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.
Share on facebook
Facebook
Share on linkedin
LinkedIn