ERP inventory taking offers better, faster tracking of all items in your warehouse. ERP systems make warehouse cycle counts a breeze thanks to their ability to accurately track all items in stock. Before you hand off your books to your accountant for year-end close, conduct an ERP inventory count to ensure you adequately reflect the value of merchandise in stock.
Tips for a Smooth ERP Inventory Count
An accurate inventory count isn’t just about evaluating the worth of the goods in your warehouse. It’s also a health check. Why? Because if you discover shrinkages and shortages, you’ve uncovered a virus making a sneak attack in the form of theft on your business. You can take swift action to nip it in the bud.
Although your staff may find inventory counts tedious, a little preparation can make ERP inventory day go much more smoothly.
- Timing is everything: Choose the slowest time for your business so that goods aren’t moving into receiving or out through shipping during inventory taking. Many retailers opt for twice annual inventory taking in January and July—two historically slow months—and on a Monday night, which is also a traditionally slow day of the week. Look at your ERP historical records to find downtimes for inventory taking.
- Prep the warehouse: Gather and recycle all the empty cartons to get them out of the way. Replenish empty bins and move returned items back into stock. Do a walk through and ensure that all shelves and aisles have signage identifying their location for the inventory records. A little preparation goes a long way toward more accurate inventory counts.
- Pair up: Inventory teams or pairs reduce errors. One person can take the count, and the other double-check as you move along. Any discrepancies can be corrected as you work rather than backtracking to find them.
- Create a map: Draw a plan of your warehouse with aisles, shelves, bins, and central areas for inventory equipment and supplies clearly marked. You can then apportion different sections of the map to different teams or for different inventory nights, depending on your needs.
- Train the inventory teams: Never assume that staff understands how to take inventory counts. Show them precisely how you would like them to take inventory, use the barcode scanners, and record items. Explain every step of the way and walk everyone through the warehouse so they understand the game plan before inventory taking begins.
ERP inventory taking isn’t the most exciting project on your to-do list, but we’d argue it’s one of the most critical tasks of the year. A business that fails to conduct an accurate stock-taking annually is a business that’s working without adequate knowledge of its on-hand merchandise and value. Take the time now to do a thorough job with your inventory management, and you’ll have a more organized and prosperous new year.
When you need software for manufacturing companies, contact Emerald TC. We can help you choose the right ERP system for your needs and offer Sage, Acumatica, and other software packages for every type and size manufacturing company. Contact us or call 678-456-6919 for more information.