Keeping tabs on your inventory is a lot like trying to keep your home tidy—you need to keep on top of it to avoid chaos! Whether you’re running a cozy corner shop or a sprawling warehouse, regular stocktakes are essential. But how often should you actually roll up your sleeves and dive into the world of counting products and checking shelves?
The short answer: regularly!
Stocktakes are crucial for maintaining the health of your business. They help you ensure that what you have on your books matches what’s on your shelves. Regular stocktakes can prevent overstocking, understocking, and unexpected shortages. Of course, the frequency of your stocktakes depend on what type of business you’re running and the stock you’re counting, let’s break it down.
- Retail: Monthly to Quarterly
Retail shop floors are busy places with constant product (and people) movement. It’s important to stocktake frequently to keep on top of things:
- Monthly: For high-turnover items or busy holiday seasons
- Quarterly: For general merchandise and slower-moving stock.
This frequency helps catch discrepancies quickly, so you can adjust orders and avoid the dreaded “out of stock” situation.
- Warehouses: Quarterly
If your warehouse is handling bulk goods, you can rely on fewer stocktakes:
- Quarterly: This is a sweet spot for many warehouses, striking a balance between control and practicality.
Regular checks help you make sure that everything is where it should be.
- Manufacturing Businesses: Bi-Monthly to Quarterly
Manufacturing involves both raw materials and finished products, attention to detail is key:
- Bi-Monthly: For critical materials or finished goods with high turnover rates.
- Quarterly: For everything else to keep your production lines running without issue.
- Hospitality: Weekly to Monthly
In the hospitality industry, freshness is key, especially for perishables:
- Weekly: For perishable goods in kitchens, bars, and dining areas.
- Monthly: For non-perishables and supplies like linens or cleaning products.
Frequent checks help maintain quality and avoid waste, ensuring your guests always get the best experience.
Special Cases: Ad-Hoc Stocktakes
As ever, this list is not exhaustive, you might need to carry out an ad hoc stocktake before you launch a new product or at the end of the financial year to wrap things up before starting afresh. An ad-hoc stocktake can also help when you’re investigating discrepancies due to error or theft.
The right frequency of stocktakes depends on your business type, size, and inventory turnover. Regular stocktakes are like health checks for your business and really shouldn’t be neglected to make sure everything runs smoothly and that you can catch issues before they become full blown problems. So, set aside some time, grab your clipboards and get counting!
If you need a little help to level up your stocktake, give the team at Abacus a call on 01637 874609 or email book@abacusvaluers.co.uk.
