By Denis McCarthy
The Stock Take is a job that can be avoided, and for many, this process is a significant task, with all hands on deck, to count, input, check and double-check. For some, there is a relief that it only happens once (or twice) a year! In a busy Parts department, there may be a view that it is impossible to carry out stock takes more frequently than once or twice a year.
Good practice would indicate that a stocktake should be carried out at least once a month to maintain healthy stock levels, prevent stock losses, and ensure inventory and accounting records accuracy. At Avonbrook, we would go further and recommend Continuous Stock Takes.
- Continuous Stock Takes have many advantages -
Normal business functions can continue.
They can be carried out by one individual.
Stock discrepancies are likely to be identified and corrected more quickly than under the annual stock take process.
Having a greater focus on product movement and balances means that new products will be set up more accurately to ensure they fit in the working Bin structures.
Obsolete or Unmoved stock can be identified sooner, which should help reduce the Stock valuation total.
Special Order Parts that remain uncollected will be identified sooner and may be returned to the Supplier.
Misplaced parts will be identified and put in the correct location.
While it may be viewed as disadvantageous to spend extra time carrying out continuous stock, all departments benefit; having accurate stock balances, correctly located parts, less obsolete stock, and lower Stock Inventory totals cannot be discounted.
Ideally, a stock take should take less than an hour to complete. While there are different criteria available when creating a stock take, choosing a Bin range is probably the most straightforward. This may mean having to review your current Bin structures, to ensure that the product count, for the selected Bin Ranges, is small enough, to allow it to be completed within the hour timeframe.
A weekly process should be implemented to carry out continuous stocktaking, as the goal would be to count all Bins at least two times, but preferably more, in the calendar year.
If you require additional training on the Fortuna Stock Take process, please do not hesitate to contact me at email@example.com.
November 2020, Avonbrook Newsletter Issue 1