Warehouse Preparation for an Accurate Inventory Count
The accuracy of your warehouse inventory count hinges significantly on the layout of your inventory and the level of organization within your space. A well-prepared warehouse dramatically improves the reliability of your count. The integrity of the process is largely determined by several key factors, including careful planning and execution.
Planning Your Inventory Count – Key Questions to Answer
Before beginning, address these critical questions to ensure a smooth and accurate count:
- Timing: When is the warehouse inventory count scheduled to be completed?
- Scope: Is it a full or partial count of the warehouse?
- Duration: How long do you estimate it will take to complete the entire warehouse inventory count?
- Data Entry: How long do you estimate it will take to input the count quantities and their corresponding locations?
- Operational Status: Will the business or warehouse be open, closed, or operating over a weekend, overnight, holiday, or requiring a shutdown specifically for this purpose?
- Staffing: What staff will be available to perform the count and accurately complete the data entry?
- Distribution: Who specifically will be in control of the distribution of count sheets or tags to ensure consistent application?
- Variance Handling: Will variance analysis be required before or after the warehouse inventory count is completed?
Preparing the Warehouse Environment
The following steps are crucial for effective warehouse preparation:
- General Housekeeping: The warehouse should be tidied to allow for easy access and clear passageways, particularly when counting stacked inventory items.
- Inventory Consolidation: Where possible, consolidate types of inventory into a single location to simplify the counting process.
- Logical Organization: Organize count areas logically, using methods such as bin location, product code, SKU (Stock Keeping Unit), or supplier’s product code, depending on your operational needs.
- Clear Labeling: Inventory must be clearly labeled to facilitate easy identification by the staff performing the count.
- Inventory Removal: Remove any inventory not being counted – this includes items awaiting return to the supplier or those designated for disposal.
Considering Inventory Movement and External Factors
- Inventory Movement Restrictions: Minimize inventory movement during the count process to avoid inaccuracies.
- Consignment Inventory Management: Carefully consider consignment inventory:
- Are there items consigned out to customers?
- Are there items consigned to you from suppliers?
- Is there consignment inventory being shipped to stores?
- A robust system must be established to identify and report on these inventory items.
Verification and Confirmation
- Visual Checks: Conduct regular visual checks of the warehouse sections to confirm that all inventory has been accounted for.
Important Note: Accurate inventory counts require meticulous attention to detail and a systematic approach. Proper warehouse preparation is a cornerstone of a successful inventory count.