Inventory Slips

Whether you are a manufacturer or a retailer, you are bound to have miscalculated inventory. Here are few faults that you may commit while performing inventory. Be careful !

·         Incorrect store preparation

 One of the most common mistakes, it occurs when racks are not organised properly, all products are not assembled for inventory, incorrect item pricing is done and when any item is hidden in performing inventory. Errors may also occur when they are in incorrect order i.e. to say they are not in order in which they should be for counting or there may be absence of a  floor map that have all the countable sections of the warehouse.

·         Non-presence of early audit verification

This activity could save you from hours of recounting. Thus, one should before an inventory check for any questions, errors or issues that might affect inventory big time.

·         Non-preparation of counter

If the employees are not properly trained on how to count the inventory then mistakes are bound to happen. Also the company's management often engage employees to count inventory. However, the store management and the store managers are the people who should count the inventory to get it accurate.

·         Not controlling the inventory environment

It is preferred to count the inventory when the store is closed but when open, the inventory should keep track of uncounted items and the items which are sold.

·         No checking of bags

Whether employee personal bags or bags of inventory personnel of the company to which inventory management is outsourced, should be checked.

·         Non Dependence on your own or hired staff

Inventory can give excellent results  when you speak out your business concerns and look for guidance from your hired staff. Prior to inventory, it is best to sought any errors, any processes for special circumstances or all logistical details. More input from you will only better the results.

·         No error resolution process in place

Errors in inventory can cost you crores of rupees. Errors in counter, in product or in the counting process must be resolved prior to the final inventory's submission.

·         Lack of flash or burst inventory preparation

It is important for flash inventories to have a date for inventory movement. It is also important to have all transfer or shipping documents ready prior to the inventory. This is crucial for reconciliation process henceforth.

·         Multiple quantity key's incorrect use

This kind of error can cost quite a few lakhs of rupees to a business. For example, the inventory may show 10 medium sized spoons while the actual inventory is 5 large spoons, 2 medium and 3 small spoons.

·         Not paying attention to unmarked inventory

Unmarked inventory resolution should be executed prior to starting the inventory process and should be communicated to the training staff. Unmarked inventory should be assigned a counter which also is sometimes called a trouble area in a store.

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