The reason why inventory management is very important is because it helps to keep the business is on track when it comes to knowing how much is in stock, how much to order and at what time. The inventory audit process therefore should be conducted regularly to ensure that the company is able to meet the customer orders, but more so to ensure no shortages which can be inconveniencing for the business. However, inventory audit process is not an easy one and requires want to be very diligent and informed on how to do it successful. There are important tips you can incorporate in your inventory audit processes to ensure that it is flawless. Discover more below on how to conduct a smooth inventory audit.
Always ensure that you have an accurate inventory count to begin with. It is important for example to ensure that you have an account of the new items that you have added to your stock since the last audit. This is the perfect way of ensuring that you have accurate inventory numbers that are very important for a successful audit. You need to be very precise about this by paying attention to details to avoid mistakes that can be very costly. For the purposes of improving accuracy of the inventory numbers, it is always wise to conduct physical count of the inventory. Make changes accordingly in case there’s anything missing in the records by comparing the physical count tool records.
It is also important to investigate any discrepancies which is important for quality control. This is an important process because the mistakes can happen because this minor, or because of complex issues like different methodologies used. The moment you identify the inconsistencies, you need to resolve them immediately and update the records so that it can reflect the current level of inventory. This is an effective way of inventory management.
Regularly review the inventory count procedures. Irregularity in such procedures can lead to under or overstocking of product which is bad for your company. That will also demand that you train your staff on how to proper inventory management. As you train them, also ensure that the unless and the importance of a regular inventory audit.
Have systems in place to manage different inventory levels. In addition to that, you need to ensure that your inventory is in a safe and secure location. Inventory tracking solution such as barcodes are also necessary. You can also rely on professional inventory management services and inventory management software systems.