What is Stocktake & Why is it Important?

businesses because it streamlines inventory management and detects theft, fraud, or pilferage early on. Stocktakes are conducted to physically match actual stock levels against records. In case of any discrepancy, you can make adjustments and identify issues to prevent overstocking or understocking.

Why are Stocktakes Important for Businesses?

Stocktakes are essential because they give the complete overview into your inventory. It helps recalibrate records, improves stock handling to cater to demand, and simplifies budget management, forecasts, and operational processes. Any mismatch will indicate a lag in your business processes and help you plug-in the gaps to prevent future losses.

How to Perform Stocktake?

Stocktakes have a simple process, but it is much more than meets the eye. On paper, it is the act of counting available stock levels and comparing them against stock records. However, complexities arise when you have to manage thousands of items in your store. You also must have a clear-cut process to help employees improve internal management and accurate data collection.

Here is a step-by-step guide on how to perform a stocktake:

Create a Stocktake Schedule

Setting a date and time for stocktaking lets your staff prepare and identify systems to use. In case of extensive inventory, you can also close operations or schedule the stocktake after business hours. This is important because in case of any issues, you will need time to resolve them.

Check Stock Records

Make sure your stock records are accurate and up-to-date. In case you spot outdated data, you can tie up any loose ends. Ensure that all sales and purchases are on hold before stocktaking.

Locate all Stocks

Include all items on your shelves, items stored in a back room, and items being delivered or waiting for collection. This will provide the complete overview of your actual stocks.

Count Physical Stocks

This is where the stocktaking process actually begins. Counting stocks can be done manually by a pen and paper or a spreadsheet. However, this may be time consuming and enhances risk of errors. Inventory management systems or barcode scanners can be used to count stocks faster & with more precision.

Compare Stock Count to Stock Records

Once the counting of stocks is completed, compare the numbers with original stock records and spot discrepancies (if any).

Review Discrepancies & Recount if Necessary

If you uncover any discrepancy, recount items to ensure there are no errors. If the numbers all add-up, analyse the cause of discrepancy to minimise future losses. This may include refining processes, investing in new technology, or improving security in your establishment.

Update Stock Levels

Once you are sure of your stocktake data, update inventory records for accurate and updated figures.

Schedule the Next Stocktake

As soon as you finish your current stocktake, schedule the next one. Regular stocktaking deters employees from theft, optimises operations, and reduces the chances of errors.

Benefits of Regular Stocktakes

In essence, performing a stocktake will improve decision-making and prevent cash flow issues in your business. Other benefits include:

Maintains Up-to-date Inventory

Errors may happen even with robust record-keeping. A stocktake will ensure your records are accurate and up-to-date.

Prevents Theft & Stock Loss

Errors like theft, inaccurate stock control, or damaged stock are common issues that are identified during stocktaking. It matches inventory records against what’s actually stocked on your shelves to ensure all stocks are accounted for.

Aids in Informed Decision Making

Understanding stock levels is essential for informed decision-making. Stocktakes go beyond inventory management systems. While the latter gives a reasonable estimate of your stock levels, the former tells you precisely what you have.

Avoid Understocking & Overstocking

Understanding inventory levels is crucial, especially for high-volume business. Running low on inventory risks losses and impacts customer experience negatively, whereas overstocking may end up increasing carrying costs, limit cash flow and storage space, and increase the chances of inventory losses or spoilage.

Identify Old Stocks

While inventory management systems track usage by dates, as an owner, it is critical to see each item yourself. For instance, any stock remaining from last season should be rotated first. You may discount the item or add offers to boost sales prospects. Overall, it helps you sell old products ahead of new ones to prevent stock loss.

Take Control of your Business with the Stocktaking Experts

Regular and thorough stocktakes will give you a comprehensive and accurate understanding of inventory. From pricing products to minimising losses, stocktaking gives vital information that helps in making informed business decisions. Any instance of fraud or theft & understocking or overstocking can be identified before they impact your business and create losses. You can also refine stock management & impart the necessary training to employees to ensure robust management at every level.

Performing regular stocktakes with Hospitality Partners will keep your inventory levels accurate and give you insights that will help grow your business. Get started with a stocktake by seasoned professionals today.