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Retail Technology Tip #10 From Storis: Physical Inventory

Furniture World News Desk on 9/23/2016


Inventory is your business’ most valuable asset. As a business owner, your goal is to keep track of what you have in stock at all times. Reports can help you stay informed on a daily basis, but it is important to perform physical inventories of your products every year. A physical inventory is when a business physically counts its entire inventory. Preparing for this procedure is extremely important to ensure proper execution. In this article, we explore 5 ways to prepare for and execute a physical inventory.

  1. Set the Date- Having a specific day and time will help you to be more organized when it comes to planning and execution. Plan the physical inventory around your fiscal year end so you can have peace of mind as you enter a new year.

  2. Review Reports- Running reports beforehand will allow you to get an idea of the quantities you have in stock. You can compare your inventory stock quantities to what your warehouse has on hand. You can then utilize this to compare the numbers you get at the end of the inventory count. 

  3. Freeze Your Inventory – On the day of your physical inventory, you will have to freeze all of the items you have in your warehouses within your software system. You can then utilize the reports you get to match the numbers against what you count. 

  4. Get the Numbers- You will have to account for your physical inventory within your software system. If you are using barcoding, these numbers should be uploaded automatically. If you are counting manually, you have to make sure you are being accurate when entering data into the system. 

  5. Compare the Results – After you’ve completed the physical inventory, you will have to evaluate the numbers against your frozen inventory reports. Review your variances and adjust your inventory numbers accordingly so that all of the information within your software system is accurate.
The merchandise you own is an important asset to your business. Keeping track of your inventory is crucial to your operations. Physical inventory counts should be done every year to ensure your numbers are accurate. In order to conduct a physical inventory successfully, you need to properly plan and execute. To learn more about physical inventory go to : http://info.storis.com/physical-inventory-guide

More about STORIS: Founded in 1989, STORIS continues to be the leading provider of Retail Software Solutions and Services to Big Ticket retailers of ALL sizes. Over 350 Clients utilize STORIS’ single ERP solution including point of sale, mobile processing, supply chain management, customer care, accounting, ecommerce solutions, business intelligence and more. 

For more information contact 1.888.4.STORIS  or leave a message at https://www.storis.com/contact/