Taking inventory is one of the most important tasks any business owner can undertake. While it can be tedious and demanding – and in some cases business has to shut down for a day or so just so it can happen – it is crucial to the success of organization.
What tools do you need to have an accurate inventory count? Below, we’ve compiled a list that will make the task a little less daunting and a lot more organized.
- Cycle Counting – If you are taking a physical count of inventory you might want to consider cycle counting, which manages the accuracy of inventory records by counting materials continuously throughout the year. By partially counting merchandise on a continuous basis you can monitor stock levels without having to alter store hours. This is considered one of the most efficient inventory methods and can be done daily, weekly, etc.
- Accuracy Reports – In using the cycle count method, accuracy reports can be generated that will give you information about the precision of your inventory management system. For example, the reports can track the number of times the cycle counter has to adjust the inventory quantity and the percentage of the discrepancy.
- Use Inventory Scanners – Physical inventory counts, usually done with pen and paper, isn’t very efficient so if you are using a Point of Sale or inventory management software, see if it offers inventory counting features that will be save you time and be more accurate. Some software boast features like simultaneous stock takes, which allow the use of multiple devices to count stock faster, or allow counting to be done by using a barcode scanner.
- Inventory Records Database – The database can provide information for tracking the accuracy of your inventory. It provides information on part counts that a cycle counter or inventory manager might use to determine the accuracy of a business inventory. An inventory records database can produce cycle count reports, count lists and an inventory transaction history.
- Select the Right Employees for the Job – The people assigned to perform inventory, should be employees who have done the job before and understand the importance of the task. They should be detail oriented and organized.’
- Plan Ahead – Figure out the best time of the year for your business to do inventory and let your employees know well in advance so that there are no surprises.
- Discrepancy Investigation – Inaccurate records require a discrepancy investigation. Managers can analyze the transaction history of an erroneous record to understand the reason for the discrepancy, while an analysis of the transaction history can determine if materials are pulled from inventory when production builds or adds product.
- Be Organized – Make sure shelves, products, boxes, etc. are labeled and make sure everyone who is taking part in inventory knows where all products are located.
- Re-check the Numbers – Double-check your numbers to make sure everything was counted correctly, and do it right after you’ve finished so that’s it’s still fresh in your mind.
Taking inventory is a critical part of any business so if you follow the steps above it will help alleviate worries and issues that could come up. Plan ahead, be organized and have the right people involved in the inventory process and you’ll have less headaches afterward.