- On July 10, 2014
- check, control, inventory, quantity, supply, warehouse
Annual inventory checks are challenge for many companies, especially for these with large number of SKUs. How to be sure that the annual inventory check will not bring unpleasant surprises?
As we know, everything needs attention almost constantly. We can help ourselves and save our nerves at year-end by applying the following rules:
- Arranged warehouse – at the end of each day, the warehouse should be arranged and cleaned from packaging materials. Every SKU should be on its place.
- Running mini inventory checks. For example, every Friday you may count 1-2 SKUs and match the physical with recorded quantities. Such counts are done by the warehouse workers. In case of large assortment you may sort the products using ABC analysis and every day the warehouse workers to count a certain number of SKUs which to match with the records.
- Провеждане на частични инвентаризации. Инвентаризации, провеждани в края на всеки месец или тримесечие помагат за сравняване на часовника ви и за наблюдения как върви фирмата ви.
- If you have many, really many SKUs, their counting at year-end would require days and an army of counting employees. Then you may apply the “inventory sampling” method. This method allows counting a small part from items “В” and “С” (if they are homogeneous) and to extrapolate the counted data to the rest quantity. It is preferable item “A” to be counted according the standard method. In some EU countries “inventory sampling” method is officially accepted by tax authorities and is applied by giants like Bosch and Henkel. In order to apply this method you should be sure that the records in the system are reliable (without mistakes).
The inventory checks, though time consuming and unpleasant, are notably useful and their results show the responsibility level of your employees and suppliers. When you register significant physical and documental discrepancies, do not hesitate to keep accountable the staff and suppliers and to stop the poor practices.