Tip: Make sure your products are where they should be before performing a physical inventory count. Tell them why you’re closing, when you’ll re-open and that they can still shop through your online store. Lightspeed has offices in Canada, USA, Europe and Australia.

Make sure your products are where they should be before performing a physical inventory count. Next, count them and be sure to indicate their SKU number and size. After you’ve done several inventory counts, you can compare results to one another. Some third-party inventory counting services include: Depending on how many products you carry, physical counts can be time-consuming. 21 Steps To Taking A Physical Count Of Inventory 1. Whenever possible, try to perform physical counts after business hours.

If you’re already using Lightspeed, you can visit our, On his blog, Bob Phibbs, The Retail Doctor, mentions that the. This enables you to stay organized and divide and conquer which inventory is counted and by who.

Let’s start with a definition: physical inventory is the process a manufacturer goes through to count its entire inventory. The important job of taking physical counts of your inventory should only be … There are different reasons why inventory checklists are created. An inventory checklist is an organizational tool that allows entities to ensure that they are fully aware and well-guided when it comes to the planning, implementation, and development of inventory management. Try to schedule your inventory counts when you expect your stock... Don't announce your count schedule too far in advance and do random partial counts. So let’s dive into what, exactly, a physical inventory count is. Why? Once a section is counted and any discrepancies are identified, you can mark it off as completed.

Everything your business needs to grow, delivered straight to your inbox. While this method works, it isn’t without pitfalls. Physical inventory counts are done by counting each item in the entire inventory. The key to good inventory management is to keep an eye on your data and be able to transform that data into useful information. Before jumping to conclusions, It is good practice to do a recount for the products you find have surprisingly low or high discrepancies. Physical inventory counts are prohibitively time-consuming and, as a result, most retailers only do them once a year. This will make physically counting and reconciling inventory far simpler. That’s why it’s important to plan ahead and think about when (and how often) you schedule full counts. Whether you’re tackling an inventory count using a pen and paper, an Excel spreadsheet or sophisticated inventory management software like Lightspeed, organized, systematic inventory management is undoubtedly the backbone of operating a profitable retail store. Typically, physical inventory counts are performed by an assigned worker (or team of workers depending on how much inventory there is to count) who will count the inventory levels of each item on the sales floor and in the stock room. If you’re a solo operation and don’t have time to tackle a full physical inventory count on your own, third-party inventory counters may be a viable option. Some stores limit full physical inventory counts to once a year, others do them bi-annually, while others conduct them at frequent intervals. They can perform the store-wide counts while you tackle the more manageable cycle counts. A physical inventory count (also known as a full inventory count) is when you count all of the products in your retail store in person. Store your products in defined areas and assure that staff categorizes products accordingly, never placing an item where it shouldn’t be. When and how frequently you perform a full stock take varies from one store to another. Walk them through the labeled map of your store’s layout so they know where to orient themselves and find the products they’re responsible for counting. Walk around your stockroom and sales floor and be on the lookout for stray or misplaced products. Use the following Lightspeed Analytics inventory reports to stay ahead of your inventory needs: Once inventory is counted and you have a clear view of discrepancies per section of the store, check to see if there are any patterns. Walk around your stockroom and sales floor and be on the lookout for stray or misplaced products. In any case, you want to avoid closing the store during business hours. Oftentimes, the loose pallets and stray products without a box or packaging can result in avoidable discrepancies. In those cases, having employees count their inventory more than once is likely enough to avoid any similar errors in the future. To make time for counting inventory, many retailers work after business hours or close the store temporarily, none of which are ideal. Because counting all of the merchandise in-store is both time-consuming and tedious. For effective cycle counting, start by choosing a section of your store (the shoe section) or a product (a type of sweater) to focus on. Keep in mind that stock taking procedures vary from one provider to another, so it’s important to consult the third-party stock taker to get a clearer understanding of their processes and price. Are you spotting any patterns? Are discrepancies concentrated in a particular area of the store (like near the entrance or expensive items)?

Merchants use a mix of both cycle counting and physical counts to reconcile inventory, determine shrinkage and maintain accurate inventory levels year-round.

As a result, cycle counts are considered one of the most efficient inventory counting methods for retailers. In most instances, discrepancies are a result of stock-taking errors like bad math or mistakes inputting numbers.

Your labeled store layout can also serve as a handy checklist throughout the inventory counting process. You may be dealing with internal theft of fraud, in which cases you need to investigate, verify security footage and take appropriate legal action. This is especially true if you’ve scheduled a physical inventory count outside of typical business hours, but a free meal, snacks and drinks can go a long way in terms of employee satisfaction. Before you start counting inventory, check your POS system’s Uncategorized Inventory report to identify which items have no assigned category. If you’re partial to combining both full and partial inventory counts, we’ve put together a list of tips to make the counting process as seamless and error-free as possible: Physical inventory counts are traditionally done using either a pen and paper or Excel sheet to tally up products then reconcile that date in their POS system. In any case, you want to avoid closing the store during business hours. Success!

In any case, regularly performing cycle counts often is one of the best methods to uncover systematic discrepancies and take appropriate action. There are benefits to performing both full and partial inventory counts. If that’s not an option and you need to close your shop temporarily, let your customers know by email (MailChimp has an email builder that’s simple to use) and with in-store signage. If you’re already using Lightspeed, you can integrate MailChimp with your POS system and send personalized emails and recurring newsletters to people subscribed to your mailing list. You may be dealing with internal theft of fraud, in which cases you need to investigate, verify security footage and take appropriate legal action. With smart, scalable and dependable point of sale systems, it's an all-in-one solution that helps restaurants and retailers sell across channels, manage operations, engage with consumers, accept payments and grow their business. Communicate your findings with sales associates and train them on how to spot and stop shoplifters. It is a time consuming and labor-intensive process. With Lightspeed’s Inventory Counts capability, merchants can count, reconcile and compare counts from different time periods using a barcode scanner. So what makes people react this way towards physical inventory? For retailers, doing a physical inventory count is something that often gets put off. A labeled map of your store’s layout will make it easier for you to assign workers to a specific product of section of the store. Finally, compare the number of inventory you counted to the inventory levels in your POS system. Lightspeed is a cloud-based commerce platform powering small and medium-sized businesses in over 100 countries around the world. Once you’ve finished counting your inventory, there’s still important work to do to ensure inventory accuracy: Before you update a product’s inventory levels in your point of sale system, it’s always more prudent to double-check that the counted inventory numbers are correct. On his blog, Bob Phibbs, The Retail Doctor, mentions that the best times to do a full inventory count are the last weekend of January (during the post-holiday lul) or at the end of July because SKU levels are at their lowest at these times. are the last weekend of January (during the post-holiday lul) or at the end of July because SKU levels are at their lowest at these times. For one, it requires double entry, is prohibitively time-consuming and prone to human error. If you’re already using Lightspeed, you can address uncategorized inventory before a stock take with the Uncategorized Inventory report. Next, count them and be sure to indicate their SKU number and size. Just mentioning the words “physical inventory” on the shop floor will result in a few laughs and eye rolls.

has an email builder that’s simple to use) and with in-store signage. When you’re ready to start comparing your actual inventory levels to what’s logged in your POS system, you can download this handy (and free), With Lightspeed’s Inventory Counts capability, merchants can count, reconcile and compare counts from different time periods using a. . Getting your inventory counting team on the same page is an important part of organizing a stock take. Another, albeit more time-consuming, option is to re-count every product category with discrepancies.

For effective cycle counting, start by choosing a section of your store (the shoe section) or a product (a type of sweater) to focus on.

Strong inventory management will lead to fewer discrepancies, faster reconciliation, more cost-effective purchasing and more efficient employees. The employees you choose to take counts need to be seasoned team members that you can trust to take the job seriously and prioritize accuracy. The three things—listed above—that are necessary before conducting your facility's physical inventory will allow your company to have: Accuracy the day of your physical inventory Optimized efficiencies during the physical inventory Fewer SKU's to count during your physical inventory Bob Phibbs suggests that merchants include “the location of every rack, display, wall and shelf,” and labeling what product categories are located there. If you’re already using Lightspeed, you can. The best way to do this is to simply have stock takers count the inventory several times to be certain. Plan ahead. To make the counting process smoother, it may be valuable for you to print out a map of your store and stockroom, as well as where each product type is located. Perhaps that’s a signal to place them closer to the point of purchase to dissuade theft. If you’re already using Lightspeed, you can address uncategorized inventory before a stock take with the, In other cases, stock discrepancies can be a result of more nefarious reasons like. Headquartered in Montréal, Canada, Lightspeed is trusted by favorite local businesses, where the community goes to shop and dine.