No matter if you run a supermarket, stationery store, or automotive shop, if you are a product seller, you are familiar with the painstaking and time-consuming process of stocktaking.
What is stocktaking?
Stocktaking refers to examining the quantity and quality of your goods in the store and warehouse. It involves counting your physical stock and maintaining it as a record. Stocktaking gives you a clear picture of the stock you hold.
Importance of Stocktaking
Stocktaking, or counting your inventory, is mandatory for any product-based business.
Regular stocktaking can help your business to
- Identify the best performing products and invest in them for increased sales.
- Forecast stock levels accurately and prevent overstocking and understocking of goods.
- Identify missing, stolen, or damaged stock.
- Identify soon-to-be expired products and sell them at discount rates.
- Find poorly performing products to avoid buying them in the future.
- Streamline inventory management processes.
- Find accounting discrepancies early.
- Forecast sales revenue and buy the right amount of goods.
Types of Stocktaking
There are several types of stocktaking.
1. Annual stocktaking
Many businesses follow annual stocktaking, checking physical stocks once a year.
2. Periodic stocktaking
Performing stocktaking periodically, like every month, once in three months, or twice a year, is known as periodic stocktaking. It is one of the most popular types of stocktaking.
3. Spot checks
Businesses perform spot checks randomly, especially if they have noticed some discrepancies. For instance, if you find a mismatch between your physical stock and inventory software records, you can perform a spot check to identify the cause. Spot checks are beneficial if you suspect theft or any other malpractices.
4. Continuous stocktaking
In this method, you conduct stocktaking at different times for different products. For example, you may need to count specific products once a month and other products weekly. It depends on several factors like the product’s shelf life and demand.
5. Stockout validation
Stockout validation happens only if the products become critically low or out of stock. This methodology is handy to figure out why and when a stockout occurred and help you ensure it doesn’t happen again.
How often should you do stocktaking?
There is no one correct answer for the frequency of stocktaking. It solely depends on your business’ inventory plan and varies from company to company. However, here are a few things to consider while scheduling your stocktaking:
- How efficient is your inventory tracking process? The more reliable your system is for product tracking, the fewer times you may need to conduct a stocktake.
- Which industry does your business serve? If you run a restaurant, sell fruit, or own an entire grocery store, you may need stocktaking more often than other industries as you have to deal with expiration dates.
- Can you afford to shut down your business often to conduct stocktaking? Stocktaking does require halting your business processes to conduct a count. Plan to avoid busy times of the year.
How does DEAR’s inventory management software make your stocktaking effortless?
1. Manage large product volumes
If you’re a wholesaler handling large product volumes, investing in DEAR’s inventory management software can help you perform stocktaking efficiently. The software allows you to create product families consisting of variations of the same product. Furthermore, you can identify the products readily as the software automatically generates a unique SKU for every product. Can stocktaking of huge product volumes get any easier?
2. Increase speed and accuracy
Manual counting consumes a significant amount of time and is error-prone. A barcode scanner eliminates the risk of manual errors and allows you to speed up the stocktaking process. DEAR enables you to use a barcode scanner to process inventory, reducing time and errors. Just scan the barcode of products and rest assured with DEAR’s inventory management software.
3. Streamline your business processes
With DEAR, you can readily sync your physical sales with your inventory. The software seamlessly integrates with POS systems, updating your inventory levels with every business transaction made at your retail store. Furthermore, the software automatically generates relevant accounting documents. In short, DEAR’s inventory management software not only enhances your stocktakes but streamlines all of your business processes, finance and warehouse into one automated solution.
4. Efficient stock transfers
As a modern business, you may sell across multiple locations. Thus, stock transfers are mandatory to fulfill orders. Transparency is required to perform efficient stock transfers and stocktaking. With DEAR, you can transfer your inventory across multiple locations with transparent transfer costs. Thus, you can avoid overstocking or understocking, so you have optimal inventory levels at all times.
5. Apply the inventory write-off
Performing stocktaking helps businesses to identify and discard obsolete inventory timely. With DEAR’s inventory write-off functionality, you can instantly spot and remove obsolete inventory. Thus, you can reduce waste and minimize losses.
6. Use multiple price tiers
DEAR’s tiered and custom pricing feature helps you seamlessly attract high-spending customers and price-conscious purchasers. Ultimately, you can boost sales and gain maximum profits.
7. Effective warehouse organization
An organized warehouse helps not only with efficient stocktaking but also in picking, packing, and fulfillment of orders. With DEAR, you can quickly sort, categorize and arrange stock in your warehouse as the software allows you to segregate products based on product families.
How can DEAR’s inventory management software help your business?
DEAR comes with a fully integrated, cloud-based inventory management software that helps streamline your stocktake seamlessly. You get real-time insights into your stock levels and order statuses, irrespective of your product volume. With POS integration, every physical sale is reflected immediately.
Stocktaking need not be a challenging and time-consuming process anymore. Please book a consultation call with our DEAR experts and get all your questions answered. Focus on your business growth while DEAR’s inventory management software effectively handles your biggest asset, inventory.