What is the best time to conduct a physical inventory count?

3 Warehouse layout

The third factor to consider when deciding the best time to conduct a physical inventory count is the warehouse layout. This is the design and organization of the warehouse space, shelves, aisles, and bins that store the inventory items. A well-designed and organized warehouse layout can facilitate the physical inventory count by making it easier to locate, access, and count the items. For example, a warehouse that uses a logical numbering system, clear labels, and adequate lighting can speed up the physical inventory count process and reduce the errors. On the other hand, a warehouse that uses a random or chaotic layout, poor labels, and dim lighting can hinder the physical inventory count process and increase the errors.

4 Inventory method

The fourth factor to consider when deciding the best time to conduct a physical inventory count is the inventory method. This is the technique and tool that is used to perform the physical inventory count. There are different inventory methods available, such as manual, barcode, RFID, or drone. Each method has its own advantages and disadvantages, depending on the type, size, and complexity of the inventory. For example, a manual method may be suitable for a small or simple inventory, but it may be time-consuming and prone to human errors. A barcode method may be faster and more accurate, but it may require special equipment and software. A RFID method may be even faster and more accurate, but it may be expensive and complex. A drone method may be innovative and efficient, but it may be risky and unreliable.

5 Staff availability

The fifth factor to consider when deciding the best time to conduct a physical inventory count is the staff availability. This is the number and skill of the staff members that are involved in the physical inventory count. Depending on the inventory method, the physical inventory count may require more or less staff members, and more or less training and supervision. For example, a manual method may require more staff members, but less training and supervision. A barcode method may require less staff members, but more training and supervision. A RFID method may require even less staff members, but even more training and supervision. A drone method may require the least staff members, but the most training and supervision. Therefore, the best time to conduct a physical inventory count is when the staff availability matches the inventory method.

6 External factors

The sixth and final factor to consider when deciding the best time to conduct a physical inventory count is the external factors. These are the factors that are beyond the control of the warehouse, but may affect the physical inventory count. Some examples of external factors are weather, regulations, customers, suppliers, and competitors. For example, a warehouse may want to avoid doing a physical inventory count during a storm, a lockdown, a rush order, a delivery delay, or a price war. Instead, it may want to do it during a calm, normal, regular, timely, or stable situation. Therefore, the best time to conduct a physical inventory count is when the external factors are favorable or neutral.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?