What is Stocktaking and Its Benefits for Companies

Have you ever wondered how supermarket or store owners manage the items in their stores? It would be impossible for staff to check each product individually when conducting stock taking, especially since many stores and supermarkets handle thousands of items.

Manually taking inventory is incredibly time-consuming, which is why many retail businesses are now adopting inventory systems to streamline and simplify the process.

So, what exactly is stock-taking? Let’s dive into the explanation below.

Definition of Stocktaking

Stock taking is the process of calculating and recording the physical amount of goods or products in a warehouse or store at a certain period. This process aims to ensure that the number of items recorded in the inventory system matches the number of physical items available.

If a company does not implement stock taking regularly, there are several risks that can arise. First, the company may experience discrepancies between records and actual goods, which could lead to errors in production or sales planning. 

Next, without stock taking, the possibility of lost items due to theft or damage will not be detected quickly, which can lead to financial losses. Finally, inaccurate inventory data can also affect customer confidence if the desired item turns out to be unavailable or out of stock.

The Importance of Stocktaking for Companies

You must be wondering what is the importance of a stock take for a company. The implementation of stock take is very important to ensure the accuracy of the company’s inventory data. By conducting regular stock takes, companies can compare the physical quantity of goods with the data recorded in the system. 

Indirectly, stock take can prevent you from stock outs that jeopardize business productivity. Moreover, as quoted from Harvard Business Review, 72% of businesses experience stock outs because they do not have accurate data on inventory. 

The implementation of stock take is also important to detect lost items, whether due to damage, theft, or operational errors. Without a stock take, it can be difficult for companies to find the cause of the loss. By tracking items regularly, companies can quickly identify problems and take corrective action to prevent further losses.

Lastly, stock takes are also important for maintaining customer trust. If companies have accurate inventory records, they can ensure that the products offered are available and ready to be sold. This will increase customer satisfaction, as they will not be disappointed by the unavailability of goods or delays in delivery.

When is the Right Time to Conduct Stocktaking?

In the implementation of stocktaking inventory, there is no definite rule regarding when this should be done. This is because each company has its own regulations. However, companies usually conduct inventory stocktaking at the end of each month, quarter, or fiscal year, depending on the needs and size of the company.

How to Implement Proper Stocktaking? 

Alam mo na kung ano ang inventory stocktaking at ang mga benepisyo nito, ang tanong na bumabagabag sa iyong isipan ngayon ay kung paano ito maipapatupad ng tama. Indeed, stocktaking inventory must be done carefully to avoid mistakes. 

However, before starting an inventory stocktake, it is important that you pay attention to some preparations, such as: 

• Do it on a holiday: Running a stocktake on a holiday is a smart choice. With no movement of goods in or out of the warehouse, counting goods becomes easier to do.
• Don’t do it alone: If your company operates multiple warehouses in different locations, don’t do this task alone. Hire help to spread the workload and get the job done faster.
• Prepare the necessary documents: An inventory check requires documentation. Make sure all the required documents are ready before you start the process.

After paying attention to these preparations, you can implement inventory taking. Here are some steps that you can take to make inventory taking less of a mess: 

1. Handle it with care and precision

This task requires employees who possess a high level of attention to detail. Inventory management is a delicate process, where even small mistakes can lead to significant discrepancies between actual stock and recorded data. Without careful and precise handling, frequent errors in counting may occur, which can cause a chain reaction of issues such as inaccurate reporting, incorrect restocking decisions, or financial losses.

2. Make a report

Once the inventory check is completed, it’s crucial for the company to prepare a detailed report. This document provides valuable insights for directors, allowing them to understand what has occurred in the warehouse during the previous period. Without this report, it would be difficult to track inventory trends and address potential issues effectively.

3. Integrated with inventory system

 As we mentioned earlier, implementing stock inventory requires a complicated process. In this case, an integrated inventory management system like HashMicro can be an effective solution. The HashMicro system is specifically designed to fulfill all inventory needs, one of which is stocktaking. 

Schedule a free demo to learn how this system can help you manage your stock take efficiently!

If you are interested in learning more about inventory systems, you can read our article on inventory software philippines recommendations.

Improve Stocktaking Management Efficiency with Inventory System from HashMicro! 

HashMicro’s inventory system is specifically designed to fulfill all inventory needs. To make this happen, HashMicro’s system is equipped with extensive flexibility so that it can continue to work optimally along with the developments that occur on the scale of your business. 

In addition, it offers comprehensive customization features. This is offered so that the system can meet all the expectations and unique needs of the business run by its users. In addition, the system can also be integrated with other systems, such as accounting, HR, assets, and others. 

Here are the features of the HashMicro inventory system that can help you with stock taking: 

• RFID Warehouse rack stock in out automation: This feature assists the stocktakes process by automating the tracking of stock in and out movements on warehouse racks, improving the efficiency and accuracy of inventory management.
• Fast Moving Slow Moving Stocks Analysis: Helps identify products in the warehouse that have high and low turnover rates, enabling strategic planning such as prioritizing stock procurement, creating sales promotions, eliminating unsold items, etc.
• Stock Reservations & Reporting: Ensure availability of desired items and manage inventory more efficiently.

Conclusions

Stock-taking is undeniably time-consuming, and when errors occur during the process, it can lead to various issues. For this reason, many companies have moved away from manual inventory checks and have transitioned to using software solutions.

One of the software we recommend is HashMicro’s inventory system. Equipped with features like barcode scanners, it streamlines the stock-taking process, making it faster and more efficient. Kung gusto mong makaranas ng libreng demo ng aming produkto, mag-click dito!