Is Stock-Taking Important? What are the Benefits of Stock-Taking?
Is Stock-Taking Important? What are the Benefits of Stock-Taking? Managing merchandise inventory stock is one of the most important things in company activities before the goods are sold and sent to consumers.
These activities start from stock management until the goods can be delivered to consumers so that consumers are satisfied because they can get the goods ordered on time. In inventory management, many things must be managed, such as managing raw materials, merchandise, processed goods, and goods supplied to a company.
The implementation of inventory management in a company aims to maximize the management of existing inventory by using the minimum possible cost so that it can help companies to get big profits.
Other objectives of implementing inventory management in the warehouse are as follows:
1. Increasing the accuracy of inventory stock
2. Reducing the risk of delays in delivery of goods to consumers
3. Increasing utilization of warehouse space
4. Can reduce risks in case of sudden price increases
5. Anticipating changes in demand and supply suddenly from consumers
6. Maintain a seasonally produced inventory of goods
7. Companies benefit from quantity discounts.
Inventory management can also facilitate access to control and supervision, as well as curb administrative processes. There are several specific strategies that you need to pay attention to for goods management in the warehouse, one of which is to do stock-taking or inventory calculations for warehouse goods regularly.
The Importance of Stock-Taking
Stock-Taking is an activity to physically calculate the inventory of merchandise in the warehouse before the goods are sold and sent to consumers.
This counting activity is carried out so that the company knows with certainty the accounting records of merchandise accurately. This activity is quite tiring and takes a long time because the inventory of goods must be calculated directly (manually) to obtain the exact number, condition, and condition of the goods in the warehouse.
However, with the advent of barcode technology, it turns out that it can make it easier to take stock-taking and can help companies efficiently reduce errors in recording and calculating merchandise.
Stock-Taking is done not only to find out the amount of merchandise inventory but also to help calculate the company's cash, assets, accounts receivable, and debt.
For a manufacturing company, stock taking is usually intended to determine the amount of inventory for raw materials, auxiliary materials, semi-finished goods (WIP), and finished goods (FG).
In a manufacturing company, usually, the officer or employee assigned to do stock-taking is a warehouse operator with supervision from an audit officer who is an independent party outside the company or sometimes also from the company management level.
What Are the Benefits of Stock-Taking?
Stock-taking has many benefits apart from checking the number of items in the warehouse.
The following are some of the benefits of stock-taking, including:
- Minimizing errors in checking stock, both advantages and disadvantages.
- Can spot errors and identify missing items quickly and can reduce the risk of the empty stock.
- Can be used as a tool to conduct annual analysis before the company can grow.
- Be able to understand the outflow and entry of stocks with certainty.
- Can know the exact condition of the stock of goods in the warehouse.
That is the description of the article regarding the benefits of stock-taking. Hopefully, this is useful and can add to your insight.
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