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The physical inventory is basically used to have better control over the inventory. In this way, the warehouse is managed more efficiently, which translates into better customer service and greater competitiveness of the company.
It is therefore imperative that a company periodically carry out inventories in order to ensure the reality, exhaustiveness and correct valuation of its assets and liabilities during its financial year.
The inventory of stocks provides supporting documents for goods, raw materials and finished or outstanding products that are the property of the company, regardless of where they are located, but also those held in the premises of the company.
Why do we stock up on goods from raw materials to finished goods?
- Eliminate the risk of delays in the arrival of goods or materials needed by the company.
- Eliminate the risk and the material ordered is not good so it must be returned.
- Pile up seasonally produced ingredients, so they can be used when ingredients are not on the market.
- Maintaining the stability of the company’s operations or ensuring the smooth flow of production.
- Optimal use of the machine.
- Provide services to customers as well as possible where the customer’s wishes can be fulfilled at one time or provide a guarantee that the goods needed by customers are still available
- Making the procurement or production incompatible with the use or the seller.
Who should do the physical inventory?
Physical inventory is a manual process in which many warehouse employees are involved, because of this, it needs to be planned well in advance so that the team can do it in the allotted time and in the correct manner to minimize the impact on company activity. It is ideal to do this count in a certain period of time on certain days, preferably during periods of low business activity.
Physical inventory personnel should have all the necessary materials and be trained to properly collect the information. In addition, a common criterion should be defined so that the inventory can be carried out quickly and without errors.
And this is why, it is best to consult an expert in the field as only a true specialist will have all the necessary tools that are to be used during inventory management. We suggest you to consult the professionals of CAC as they will not only assist but will also give you strategic advice to tackle challenges in your business.
The warehouse should be clean and tidy if possible. While this seems obvious, the warehouse manager should make sure that the facility is always tidy as this improves the efficiency and fluidity of all operations, including inventory.
The inventory of stocks makes it possible to produce a detailed and valued listing of the various stocks, by specifying the quantity and the current value of each type of stock, as well as its state. Indeed, the state of the stock has a strong impact on its book value, since it allows provisions for depreciation to be recorded for previous years.
In order to check the goods more precisely, it is recommended to consult inventory management services of CAC so that you can carry out inventory verification quickly and without errors.