Preparing year-end inventories: five tips for retail companies
After the Christmas business comes the stocktaking. Anyone who has ever worked in retail knows what this means: personal resources are at the very least stretched to the limit. However, full commitment is required once again for the stocktake.
Select the right inventory procedure
There are three types of inventory procedures:
- Physical inventory:
All assets and liabilities are physically counted, measured or weighed.
- Inventory sampling:
Only a portion of the assets and liabilities are physically counted. The results are then extrapolated to the entire inventory.
- Perpetual inventory:
The inventory is updated on an ongoing basis.
Physical stocktaking is usually the best choice for retail companies. It offers the highest level of security in terms of correct results.
Create an inventory plan
When will the physical inventory be carried out (preparation, execution and completion)? What is the schedule for the day of the physical inventory?
At which locations will the physical inventory be carried out?
Which assets and liabilities are recorded? What information is used to record them?
Which inventory methods are used?
Who carries out the inventory? Who is responsible for management and control?
What materials are needed?
Train inventory staff
- What are the tasks and duties of stocktakers?
- What do they need to know about the importance of stocktaking in order to carry out the task with the necessary care?
- What materials and aids are available to them?
- Who can they ask in case of doubt during the inventory?
Prepare storage locations
Check inventory results
Implement the strict lower of cost or market principle with “Valuation 365” from CKL
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