How to Prepare for an Inventory Count

 

To get an efficient and accurate inventory count, it is important to prepare ahead of time. Here are the key steps. Luckily, most of the steps are already part of a clean and organized inventory management system, so the time needed should be minimal.  

 

Step 1: Organize your stock

Ensure all products are in their proper location(s) and are easily accessible including on shelves, in drawers, coolers, and freezers. Pre-count all partially filled boxes and label the boxes with the count total. And finally, ensure that all the boxes under the top box of a stack are full.  

 

Step 2: Identify countable and uncountable items

This includes empty boxes and any inventory that, for any reason, won’t be included in the count. Place a sticky note or sign on it marked “DNI” (Do Not Inventory) take them off the shelves for the duration of the count. For items too large to move, simply leave them on the shelves, but with the DNI sign clear and obvious.

 

Step 3: Check your negative counts

Negative counts entail any parts that were oversold. Checking your negative counts allows you to determine whether those parts are pre-billed, or oversold. Reset all oversold parts to 0. 

 

Step 4: Prepare the area where the count will take place

Beyond cleaning and organizing the inventory to be counted, as well as dividing the area into sections, designate an area to bring damaged or missing barcodes and prices. Counters will bring such items there and the client can either replace the barcode/price or dispose of the items. Also, provide a secure area for the count team to use for equipment setup, charging devices and storage during the count. 

 

Step 5: Ensure special equipment is available if required to count merchandise

Special equipment may include safe step-ladders for high shelves, gloves for sensitive merchandise, winter jackets for coolers, and more.   

 

Step 6: Ensure your data requirements are correct

If a verified inventory count is being performed, your system code files will be required for the location being counted.  

 

Reconfirm the following count logistics ahead of the scheduled count day: 

  • Time 
  • Day 
  • Count Manager 
  • Counters 
  • Special Equipment Required  


 Step 7: Ensure all merchandise is ticketed/barcoded/identifiable

Make sure all handwritten tickets are legible. If using price tags instead of barcodes, ensure all merchandise is priced, including products in storage areas (e.g. stockrooms, coolers, freezers, bulk storage areas). Items without prices or barcodes will not be counted, and will become the responsibility of the client to count. 

 

Step 8: Ensure mobile devices are charged

Ensure counters’ devices are fully charged before the count and have a charging station setup for counters’ phones when they take a break. 

 

Step 9: Ensure all barcodes and/or price tags are visible

This, of course, will save counters time.  

 

Step 10: Ensure the count supervisor is due to arrive 30 minutes before the scheduled time of the count

The count supervisor should always arrive 30 minutes before the scheduled count to ensure all inventory count items are available. 

 

Step 11: Ensure all additional items for the inventory count are available

These items include:

  • Inventory timesheet
  • Section tags
  • Colour coded dots

 

Step 12: Divide the store or warehouse into sections & create a floor plan

The count supervisor should use the section tags to divide the store or warehouse into sections, placing them in . Pre-existing section tags/numbers should not be used unless instructed to do so. Also, use a consistent system for their placing the section tags to make it easier for counters to find them (e.g. always on the far left side of the shelf). And finally, create a floor plan for the count supervisor.  

 

Step 13: Start Transact!

 

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