If you enter the retail business, one of the basics that you should know is that taking stock of your inventory is extremely important. However, there are plenty of stock-taking techniques you can use, and, as such, it’s best that you learn everything you can about them.
Barcoding – Barcoding is the most common method of taking inventory that you’ll often see in retail business. This is because with barcoding, business owners will be able to manage their inventory online, allowing them to sync the information and improve the business workflow. Other than that, with barcodes, you’ll also be able to find the product’s information much easier, enabling faster tracking and locating in the process. However, keep in mind that the barcode needs to be as pristine as possible. Otherwise, scanning your product can be more difficult than it should be.
Spot checks – If you opt for this method, your warehouse storekeepers will check the items to determine their accuracy to their satisfaction. Unfortunately, this method can be fairly unreliable and isn’t officially recognized since it doesn’t give information as to how the business is managed.
Periodic stock verification – The periodic stock verification method is carried out monthly, quarterly, biannually or annually depending the volume of goods that your business handles. When opting for this method, the entire stock is checked every one or two days with inexpensive items being checked every year while expensive and sensitive items being checked three to four times a year. The advantages of this method is that it’s simple and convenient, doesn’t require extra staff to do and gives you a correct figure of closing stock for your balance sheet. However, with this method, discrepancies can also occur much easier, and the balance sheet preparation can be delayed if you don’t complete the process in a timely manner.
Automatic stock verification – Finally, if your business has a predetermined plan of action, you can opt for an automatic stock verification technique. With this method, you’ll have the freedom to decide the frequency of your stock-taking process, and you can also receive a detailed analysis of the stock’s condition since the discovery of discrepancies is spread throughout the year. This allows the warehouse’s stock records to remain up to date at any time of the year.
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