How to Quickly Conduct Inventory Reconciliation
Modern-day businesses tend to import a large volume of merchandise to serve production and business operations. However, overloading leads to a waste of inventory and working capital. Therefore, inventory reconciliation more often on the planned amount of goods will help the manager effectively with a better plan and import merchandise on time while the capital is still automatically rotated.
In this blog, we list out five features to help businesses conduct inventory reconciliation quickly and effectively.
What is Inventory Reconciliation?
Inventory reconciliation refers process of comparing a business with real-time amount of inventory and the records it maintains. Inventory reconciliation viewed as a fundamental maintenance process that helps businesses to check the effectiveness of stock control systems they use.
How to reconcile inventory?
To conduct inventory reconciliation, you should initially check the real-time stock counts. It is significant to step because stock counts can be very error-prone. Recount your actual inventory with your team for the most accurate numbers.
After you have recounted your inventory, compare the records your business keeps. Whenever you have completed the comparison, if you want to take a look at the delivery/shipment of stock since the last reconciliation. You will need to review it to check whether any differences could make sense of the quantitative difference.
If you found the cause of the difference, you need to create an inventory reconciliation that makes the difference. But, if you would not observe the direct may cause for the difference, you can discuss it further with your team members. Compare your profile to match the real-number of items in your inventory and think about it as lost merchandise. You need to adjust your business inventory constantly. It will result in more accurate metrics after some time and minimize inventory shrinkage, saving your business money in the long run.
Five tips for quickly conducting inventory reconciliation
Checking inventory seasonally
The seasonal inventory method means that you need to check your stock each season based on demand. You should check the shelves each season, and this way a business owner can anticipate future trends, adjust the quantity of reorders and set the right to reorder points.
The ABC method is a well-known method to help your business conduct inventory reconciliation easier. This method divides inventory into three categories. Group A covers 20% of the top of the best-selling items, whereas Group B includes items that account for 60% of the mid-margin value, while Group C covers the leftover 20%. This method prioritizes the best-performing products and frequently counts items in groups A and B, and provides a significant measure of inventory data that is analyzed for accuracy.
The random method is when you do inventory reconciliation whenever it works best for you. It may be twice a year, once a year, or maybe each week. Having it on a set schedule guarantees it to complete promptly.
It requires your staff to count specific items or areas in your inventory often. Over the long run, you need to check your whole stock, just by section. The advantage of this method is that, cycle counting can be lead without disrupting the day-to-day operations of your business. The potential downside of this approach is that it depends on data collected over time.
Manually reconciling inventory is troublesome because it can require organizations to shut down operations and spend planning for trained inventory managers. However, today, businesses can apply inventory management software to reconcile inventory ease.
Epos Direct’s Epos System is an extraordinary tool for your business to manage inventory. Along with its management features, Epos Direct is also the best solution provider for inventory reconciliation faster and more efficiently.
Inventory management helps to limit the loss of raw materials and goods. A decent inventory epos system help business owners to save on storage costs.