Step 1 : Planning the Stocktake
One of the first steps in the stocktaking process is to have the storage space organized before the initiation of the stocktake. This may seem obvious but many organizations have their storage rooms in disarray. Organize the stock room by having all of the items in the same location or label locations as primary or secondary locations when items cannot be held in the same location when the storage capacity has exceeded. This would greatly reduce confusion and stocktaking errors.
The stocktake ought to be scheduled to reduce impact on business operations. It is of necessity to find the appropriate time that is best for you and your staff to avoid disruption and any unnecessary distractions. The stocktaking process is a lengthy procedure that requires a lot of time, money and human resources that should be taken during a slow sales cycle or the inventory count should be scheduled after business hours.
Step 2: Organize a Stocktaking Team
The stocktaking team will be made up of a stock audit manager, external and internal auditors, and a strong supervisory team with experience counters and recorders.
There is no guess work or estimates in the stock taking procedure. All quantities of items must be ascertained to compare the shelf count with the record count to get the accurate quantity of inventory. There will be variances and recounts will be made to investigate the discrepancies. Over or under stock quantities on hand reported at the end of the audit may indicate data entry errors, accounting errors, poor inventory control or even theft.
Step 3: Counting the Stock
A copy of the floor plan or a draw up map of the store room can be instrumental in assigning people to each section to determine the best way to conduct the counting process. The map can also double as a checklist by crossing off sections that have been counted. This will allow the teams to see how much left they have to cover and to avoid recounting the same location unnecessarily.
Any stock that does not contribute to the operation of the business, bought for resale, or is no longer owned by the company should not be included in the stock count. Stock that has been invoiced and not yet dispatched to customers must be isolated from the stocktaking process.
Burdensome Task of Stocktaking
The three simple steps mentioned above require a lot of work and attention to detail in getting the job done right and in a timely fashion while under budget. With IMS services, clients achieve greater flexibility, control, resource deployment, and quality when they employ our services in inventory audits.
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