Stock Management Research Paper

A stock take is a count of the total business inventory. This count is typically done at the end of the financial year, end of each quarter or end of each month. How often the counting is done all depends on the business management and the value of the goods or products. This said though some businesses may do it more regularly like weekly or even daily.

An Inventory or stock count provide the business with an accurate number or quantity of stock items on hand. This allows the accountant, warehouse manager or stock controller to reconcile physical stock to the inventory records coming from WMS and / or the Storage System, highlighting variances and identifies issues with stock management and control.

If you have accurate knowledge about stock

While it might seem mean, distractions can easily lead to errors.

• Ensure the warehouse is clean and tidy and stock or inventory items are neatly packed

It may be appropriate for labels to be attached to shelves to clearly identify different stock items; i.e. categorise inventory and clearly identify and label inventory not to be counted. Train the stock or inventory counters clear guidance in the way they should count, i.e. start at the top shelf and work your way down, while working from left to right. Most importantly be very systematic and don’t skip any rack, isle or bay.

• Clearly identify what stock or inventory is owned by the business and where it is.

Separate stock that’s been invoiced to a customer, but is still in the warehouse. Ensure that all receipts are or have been captured into the system. If not all stock received has been recorded in the WMS or Storage System or accounting system, the items should be clearly distinguished. Ensure stock or inventory held at different locations or on consignment is accounted for.

• Systematically

It might seem tedious, especially if you think you have a good idea of quantities, but it’s much better to get a 100% accurate record the first time. Don’t forget to open boxes, just because the carton says there are 24 items in the box, doesn’t mean there actually are.

• Check the physical count against accounting records and recheck discrepancies.

After the count sheets has been captured in the WMS the items showing variances should be re-counted, preferably by another person. The second or maybe even a third count must all be added to the WMS and the differences to all variances should be investigated. Variances and discrepancies can be due to amongst other things the wrong capturing or receipts, incorrect dispatch quantities, wrong labels or wrong barcodes etc.

• Updating the system

Once the stock take has been finalised, update the inventory records in the accounting package in the accounting and/ or ERP system and /or Storage System if they are not linked and auto-updated.

A well-planned stock take will result in minimal disruption, accurate inventory records and provides a basis for making informed business