Stock Checking Methods for Efficient Inventory Management

Keeping a well-managed inventory is crucial for any business, but how do you make sure you’re keeping track accurately? Here’s a breakdown of common stock-checking methods that can help ensure your inventory is optimised and loss is minimised.

1. Periodic Stock Checking

• Involves counting stock at specific intervals (monthly, quarterly, annually).
• Useful for smaller businesses or those without a large product range.
• It can help pinpoint discrepancies, but gaps between checks can mean delayed responses to issues.

2. Perpetual Inventory Management

• An ongoing tracking system that updates inventory in real-time using POS data.
• Ideal for larger companies with high turnover and high-value stock.
• It ensures stock levels are always current, reducing risk of overstocking or stockouts.

3. Cycle Counting

• Conducted by counting sections of inventory regularly, so the entire stock is reviewed over time.
• Works well for businesses with varied stock as it spreads out the workload.
• Helps identify errors without disrupting daily operations or waiting for end-of-period checks.

4. Spot Checking

• Randomly checking specific items or locations to catch discrepancies.
• Often used as a quality control measure to support other stock-checking methods.
• Helps prevent larger inaccuracies by identifying issues on the spot.

Each method has its advantages and is suited to different business types, sizes, and objectives. Combining methods—like regular cycle counting with real-time tracking—can provide the best of both worlds.

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