Stock take is an activity in which you physically count the inventory and match it with the inventory record that you have.
The frequency of stock take varies in every companies. Some companies do it once or twice a year and the other do it every three months or month. However, you can do it however you need it – there is no right or wrong on this.
The difference between the amount of inventory and the amount stated in the record allows you to identify several problems and solve them to ensure a better stock control and management. Eventually, the purpose of a good stock take is to increase profit in the future.
Why Is Stock Take Important? What Are the Benefits?
As mentioned above, stock take highlights the issue in stock control and others that hamper your business in obtaining the revenue. Here are the list of why a company should do a routine stock take.
A bitter reality that affects the difference of inventory amount is theft. In some cases, the internal staff is the one who did it.
You can’t really make theft gone, but stock take can minimize it. This activity will be the catalyst so that companies do an evaluation on the security and troubled employees. If it’s routine, your employee will think twice if they attempt to steal.
ensuring your business meet the target
If you find a big difference in your inventory amount, you probably did not operate your business according to the plan. It’s better if you identify this earlier other than re-predicting your sales.
understanding your product thoroughly
Perhaps, you never really mind which products that sell better and which don’t. Stock take will help you identify that.
If you have a lot of products stored in the warehouse or store for months, it means that the product does not sell quite well so you can reduce it during the purchase and sell them with a massive discount cut.
An effective stock reordering
One of the aspects that will be supported by the stock take is the financial condition in you company. With stock take, you can easily analyse sell and revenue. With an accurate process and report, you can set a better pricing strategy and retain a good profit.
That’s the definition of stock take. Reviewing from its purpose, this activity is absolutely can not be missed.
Furthermore, for a more effective, accurate, and faster stock take, you can consider using a system that automates all warehouse-related activities. You can view the specification of EQUIP inventory system here or you can consult with our software expert here.
Related article: 5 Brilliant Ways to Improve Your Inventory Management