Certainly, physical inventory count is one of the significant tasks that retailers have to do. Further, this task can be really tedious at times. That is to say, physical Inventory Count requires time and effort. Moreover, this task requires closing the store for the time being. However, even if retailers do not take the task very fondly, still they have to fulfill this task. That is to say, retailers need to have a proper check of the inventory list and the physical availability of the products. Consequently, retailers are able to keep an eye on their stock levels and never be out of stock.
Physical Inventory Count Tips
Physical Inventory Count through Cycle Counting
Cycle counting is one of the most effective ways for physical inventory count. Further, this can be done weekly or daily, without any interruption in the store proceedings. Therefore if retailers have not tried this method yet they must follow cycle counting for physical inventory counts. This is doable and easier for retailers because this way this can count inventory partially. As a result retailers do not have to do extensive counting by shutting the stores. However, if retailers do not want to count their inventory through cycle counting, they can follow the below-mentioned tips which shall help ease their physical inventory count process.
Use Technology that helps you with Physical Inventory Count
The physical Inventory Counts are generally performed using pen and paper. That is to say, the employees note down the inventory on sheets and then add them to their system. However, this task seems tedious and effortful. Since this task is already done manually, therefore entering the data manually further becomes a headache for retailers. Therefore in case retailers are using a POS System or Inventory counting system, they should see if their system contains the inventory count feature as well.
Physical Inventory Count requires Experienced and Wise Counters
“Choose the people responsible for “owning” the entire inventory process – including how product is organized and received. Look for trustworthy individuals who are analytical in nature and not intimidated by a little math.”
–Gordon Food Service
Trust and competence is very important when it comes to business matters. Therefore retailers should not assign the Physical Inventory Count”s task to any employee. Rather, this task should be assigned to experienced and trust worthy employees. That is to say, these employees will be aware of the company policies and Physical Inventory counts procedure. Moreover retailers also have the option to hire third party inventory counters. However, the third party inventory counters can be hired in case retailers do not have experienced employees and resources.
Deciding the Timing is essential for Physical Inventory Count
Timing is essential in Physical Inventory Count. Therefore retailers should plan when to do the inventory count. However, this highly depends on retailer to retailer. That is to say, some retailers do their Physical Inventory Counts once a year, while some others may do it twice a year or even more often. However, whatever time of the year retailers choose, they should keep their employees prepared beforehand. Moreover, it is important to schedule the inventory counts after business hours.
Drawing a map can be very helpful for the physical inventory counts. That is to say, through the map retailers will be able to know the areas of the store where products are located. As a result, it will become easier for retailers to choose the areas and assign staff for specific areas of the store to count inventory. Consequently this will give retailers a better idea about the processing of the Physical Inventory Counts. Further the map can also help retailers have an accurate idea about how much inventory checking is done and how much is left.
To conclude proper and accurate Physical Inventory Count is essential because
“A mismanaged inventory can lead to an unnecessary increase in the working capital. The excess funds could have been fruitfully directed to fuel the company’s growth initiatives or research and development efforts.”