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Physical Inventory Best Practices


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Physical Inventory Best Practices

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