Taking inventory: this is how you save time
November 2023 - Taking inventory a few times a year? It is a time-consuming and error-prone activity from which, unfortunately, you cannot escape. Fortunately, it can be done faster and more accurately. Software does the difficult counting and calculation in your place. Thanks to automated stock management, you always have up-to-date inventory figures. We explain exactly how it works in this article.
Whether you run a shop or head a non-profit organisation, every business in Belgium has to take inventory at least once a year. Besides inventory, this includes many other items, such as:
· intangible, tangible and financial fixed assets
· receivables
· cash investments, liquid assets, equity assets
· debts
Stock counting: benefits of an automated process
Stock counts can be done manually or automatically. With a manual count - which traditionally happens at the end of the financial year - the margin of error is a lot higher. The accuracy of the count is obviously sensitive to human error. Obviously, an incorrect count can have major financial consequences.
An automated count is, therefore, preferable. ERP systems play a crucial role here. They ensure all incoming and outgoing goods flowing in the stock are covered and handled correctly. Barcodes or RFID systems offer a big advantage here.
An additional advantage of an automated count is that the stock can be scrutinised several times a year. With a periodic count, you get a much more accurate picture of stock movements, allowing the warehouseman to keep his finger on the pulse and take timely action in case of over- or understock.
Automated inventory management
Inventory management is a balancing act. Your bestsellers should obviously always be in stock, but how many items are enough to meet demand? And what about your least popular goods, which often sit gathering dust in your stock for weeks or months? The longer goods are in stock, the more money they cost.
Timing is everything, especially in inventory management. And that is exactly where software is strong. You set the parameters and the software then notifies you automatically when an order from a supplier comes up. It also provides opportunities to optimise your stock management to avoid obsolete stock and stock losses.
The importance of an integrated inventory management system
You read it above: taking inventory involves much more than just giving a state of affairs regarding the current stock. It is a total package that includes intangible and financial assets. So, your software must be able to collect and process all that information.
So opt for warehouse software that includes purchase, product, cash management and stock management, depending on your needs. That way, you save time on all fronts. Moreover, a computer does not make mistakes. So your inventory is not only ready faster but also error-free.
