Stock take is an activity in which you physically count the inventory and match it with the inventory system record that you have. The frequency of this activity varies in every company. Some companies do it once or twice a year and other do it every three months or months. 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 better stock control and management. Eventually, the purpose of good supply taking is to increase profit in the future.
Why Is Stock Take Important? What Are the Advantages of Stock Taking?
As mentioned above, this activity highlights the issue in stock take and others that hamper your business in obtaining revenue. Here is the list of why a company should do a routine check.
A bitter reality that affects the difference in inventory amount is theft. In some cases, the internal staff is the one who did it.
You can’t really make theft gone, but supply control 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.
Also read: 10 Tips to Increase Your Stock Control
Ensuring your business meets 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 with the sales app.
Understanding your product thoroughly
Perhaps, you never really mind which products sell better and which don’t. The 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 this is the financial condition of your company. With supply taking, you can easily analyze sales 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 and advantages of stock taking. Reviewing its purpose, this activity absolutely can not be missed. Furthermore, for more effective, accurate, and faster stock-taking, you can consider using a system that automates all warehouse-related activities. You can view the specification of the Hashmicro inventory system where you can consult with our software expert.