Stocktaking is the process of physically counting the items in your storage or warehouse facility and checking the number against the numbers you have on your records. The process can be performed every month, twice a year, or once a year depending on the volume of stock in your warehouse. Even though stocktaking may cause a little disruption in the running your business, depending on the days selected for the process, you should be prepared to make the minimal sacrifice considering the benefits you get from the process.
Important Benefits of Stocktaking
There are many benefits of regular stocktaking other than the financial advantages to your business. Here are some of the important benefits of stocktaking.
1. Increase the profits of your business
Stocktaking will help you to increase the profits of your business by reducing loss and wastage. In fact, you can increase the profits by having a realistic view of what goods you have in the warehouse at the moment, what is selling well, and what products are slow-moving. In fact, if things are going wrong, you get the chance of catching it at the earliest possible opportunity. That is why you should implement an effective stocktaking schedule in your storage facility or warehouse. That way you can make an informed and data-backed decision on which products you should invest in and which products should be avoided. If you find dead stock in the warehouse, you can plan a flash sale to shift the stock. Even though you might be selling such products at a lower profit margin, it is better to sell the items than letting them fill up your valuable warehouse space. One of the most important benefits of regular stocktaking is that you will get to learn about the slow-moving items in your warehouse. That way, you can minimise the ordering of such products and save a lot of money in the long run. These are some of the important advantages to stocktaking.
2. Uncover discrepancies
The data you get after the stocktake will be the most up to date data of what you currently have in the storage area or warehouse. Theft and damage are common discrepancies that happen in warehouses. In fact, correct stocktaking will help to uncover such discrepancies and take the necessary steps to prevent such things from happening in the future. Regular stocktaking could become a possible deterrent to theft. That way you will be able to minimise staff theft in the warehouse since the staff will know that stocktaking will bring to light any discrepancies in the warehouse. On the other hand, in the case of stock damage, the stocktaking process will highlight where the damage is occurring. If there is a leak in the warehouse and it is causing the damage, you can take immediate steps to fix the leak and protect the items in the warehouse. If stocktaking didn’t take place, you won’t know that there are damaged items in the warehouse. In fact, you may assume that all items are in a saleable condition. That is why you should implement an effective stocktaking schedule in your storage facility or warehouse.
3. Review Pricing Strategies
You get a chance of reviewing the pricing strategies of the items in the warehouse when you regularly count your stock. In fact, you will be able to make the necessary changes to the pricing structure of the items once you have a complete picture of what is in your warehouse.
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