Physical Inventory Best Practices
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Physical Inventory Best Practices

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    Physical Inventory Best Practices Physical Inventory Best Practices Presentation Transcript

    • WorkingPerson Wall To Wall Inventory The key to a successful inventory is the quality of the planning effort.
    • Participants
      • ?- Count Captain Day 1&2
      • ?- Team Leader Day 1
      • ?- Team Leader Day 1
      • ?- Team Leader Day 2
      • ?- Team Leader Day 2
      • ?- Barcode Commander
      • Josh- Upload, Scanner Support
    • Mission
      • To provide an accurate beginning inventory balance for the fiscal year by executing a process that does not exceed 12 hours per physical location.
    • Roles
      • Planning Committee
        • Plan all aspects of the inventory, train and act as team leaders.
      • Control Desk (BDO)
        • Visual inspection of the process.
      • Count Captain & Team Leaders
        • Accountable for accuracy of counting teams.
        • Tags scanned areas and investigates large discrepancies.
      • Counting Teams
        • Two person team that scans product in assigned areas.
      • Barcode Commander & Recon Team
        • Repair bad barcodes and ensures the file is updated.
        • On hand to print missing barcodes and to assist the BRT.
      • Scanner Upload
        • Upload data from scanners to the data file.
    • Best Practices
      • Items will not be moved, sold, consumed or received during the physical inventory process.
      • Items on each rack are to be counted in a systematic manner- left to right and top to bottom.
      • Indicate counted items by tagging the areas initialed by the count team
      • Two person teams- scanner, product mover.
    • Cutoff Procedures
      • Shut down normal business operations.
        • Turn off phones, notice on retail door(s) one week prior to event
      • No sales, shipping, receiving, returns or exchanges are to occur during the count.
      • Notify finance to provide all inventory related activity as of the inventory date and date to reconcile sales and receipts to be agreed upon during the planning stage.
    • Product Mutilation
      • Product that cannot be resold cannot be counted (dirty or damaged).
      • Returns not worthy of being awarded a vendor credit will not be counted.
      • Product that has no market value cannot be counted and will be transferred out of inventory and donated prior to the count.
    • Pricing
      • Each item must have an accurate cost entered prior to they physical inventory.
      • The inventory team will review their respective brands prior to the count to ensure related items represent the current manufacturer ’s cost(s).
        • Randomly tested by the Count Captain two weeks prior.
    • Pre Inventory Count Activities
      • Organize inventory and spot check stocking accuracy. (24 Hours Prior)
      • Spot check application of barcodes. (72 Hours Prior)
      • Pre count slow moving items. (24 Hours Prior)
      • Confirm counting map accuracy. (48 Hours Prior)
      • Test scanners and product/UPC lookup file on the server. (48 Hours Prior)
    • Inventory/Count Maps
      • Depictions of the rack configurations will be drawn/updated 72 hours prior to the count.
      • Count order will be indicated on the maps to provide direction to the team leaders and a point of reference to the Control Desk and Barcode Commander.
    • Training
      • Count Captain & Team Leaders
        • Review of best practices 72 hours prior.
        • Confirm accuracy of the count maps.
        • Confirm staffing commitments.
      • Day Of Count
        • Instruct on use of scanners.
        • Protocol for counting.
        • Bad skew lookup and missing barcode protocol.
        • Importance of integrity- controlling the oops factor.
    • Staff Schedule
      • Staff schedule will be started two weeks prior to the count.
        • Sign up sheets are not permitted. The Count Captain will recruit staff for each available time slot.
      • Staff schedule will be published one week prior to the count via email and physically posted on bulletin boards and doors frequented by staff in all physical locations.
      • An additional shift will be scheduled and on the ready in preparation for the application of Murphy ’s Law.
    • Record Retention
      • Support for the inventory (any count sheets, product/count maps, tags, staffing schedule) will be maintained for two years.