|
December 12, 2006 The Key To Saving Money Is Planning At the beginning of Issue 78, we showed you what a physical count worksheet looks like on one specific food oriented software program and told you that it is given to the person who is responsible for that portion of the inventory to check the accuracy of the stock. Technically you are performing a mini physical when you do this count. Although very useful and necessary to do from time to time physical counts can be an expensive process. The count usually involves paying people overtime and can also affect the sales if the count is done in normal business hours. So needless to say if that count is not 100% accurate it was a waste of time and money. Imagine paying a worker time and a half and allocating an entire day to count inventory just to find out that you have to do it again. TALK ABOUT A WASTE OF MONEY!! This is why a planning a physical count well in advance of the count date is very important practice to do. 1. Choosing a count date. This date should be picked as far in advance as possible to give people plenty of time notice. If at all possible you should try to avoid dates where peoples minds are not complete at work such as around the holidays. 2. Select the method you will use to conduct the physical count. There are many ways that inventory can be counted but we are going to explain the 3 options that distributors use most as described in Jon Schreibfeder article. - Bar-Code Readers “Bar code readers are expensive, and they require compatible bar code labels for your bins or products and special software for your computers. But these devices eliminate the necessity of counting products in teams, as well as the manual entry of counts in your computer. Because product counts in a bar-code physical can be directly downloaded from a bar-code reader to your computer, the physical inventory process is simplified and the possibility for clerical error is reduced. This usually results in a faster, more accurate count. If your computer system supports bar-code physicals, the benefits probably out weigh the cost.”-Jon Schreibfeder - Count Cards Count cards or index cards that contain an individual product and bin location are the low-tech alternative to bar code readers. These cards are placed on shelves or bins before the physical count begins. The counters can now go down each aisle and begin counting each bin in sequence. The process goes quickly because the card to record the count is already in the bin, so all your worker has to do is right a number in the correct place. This method helps in the discovery of "lost" and misplaced material because same products are put together and when a product is found in the wrong spot it can easily be put back in the correct place. If you use count cards be sure each counter has a supply of blank cards to accurately record discovered or misplaced merchandise. The blank cards should be printed on brightly colored card stock so that material that needs to be moved to its proper location can be easily located after the physical inventory is finished. - Count Sheets Count sheets are regular 8-1/2" x 11" pieces of paper, each listing about 25 inventory items. Because multiple items are listed on a sheet, counters may be tempted only count the items printed on the sheet, and overlook misplaced material or products not listed. Count sheets usually result in less accurate counts and Jon does not suggest that you use them unless there is no alternative. 3. Determine who will count the inventory If you are using bar code equipment, one person can count a section of your warehouse. But if you are using count cards or sheets, it’s often better to have two person counting teams. This is especially true if you are using count sheets rather than count cards. When forming the count teams, some good advice is to pair an experienced employee with someone with less knowledge of your material. The experienced person counts the material while the inexperienced person records the quantity. This method of forming teams allows you to best utilize the talents of your most experienced sales and warehouse personnel. It also allows inexperienced people to gain valuable product knowledge. 4. Clean Up Your Warehouse If all of the products are in the right place and neatly organized, the counters will be able to count their inventory quicker than if they continually found misplaced products. Making it a habit to keep your warehouse clean and organized will not only make this part of the preparation simpler because there will not be much to do but also will save you a lot of money in replacement of lost products. A CLEAN & ORGANIZED WAREHOUSE IS AN EFFECTIVE ONE. The Better Prepared You Are The More Money You Save To Unsubscribe
to this newsletter please respond to email with "UNSUBSCRIBE" in the subject line.
|
|
