How can you conduct a cost-effective inventory accuracy audit?

In the case of perishable commodities. Ensure that each item is accurately recorded, with an accurate batch number, expiry date and cost per unit. Rearrange all inventory in the FIFO method. Check the difference between physical stock quantity and closing stock in books. Conduct an RCA and CAPA for any discrepancies in the audit report.

Easiest way, use an ABC analysis. An ABC analysis includes grouping different value and volume inventory. I have also used this simple formula here: inventory accuracy = [counted items / items on record] * 100 . Then just divide that number by the recorded stock count of that same SKU, and multiply by 100. The answer is expressed as a percentage. And generally, a good inventory accuracy rate sits around 97% or higher. If you need a class on this look at training by ASCM Savannah Chapter or CSCMP.

Cycle counting process can be implemented based on the ABC classification of the item. Count intervals are defined based on the classification. A class items are counted more often as they are assumed to contribute to 80% of sales .

O método de inventário mais econômico (e um dos mais eficazes) ainda é o count-back, dentro da rotina de contagens contínuas. Otimiza o deslocamento para a separação, garante a acurácia do saldo restante na posição e ainda permite a manutenção visual do local de armazenagem (remoção de lascas, plásticos, pedaços de caixa, estrados, etc.)

There are different methods of auditing it can be periodical or continuous or it can be on an annual basis. In my experience over the years across different regions of the the globe, a continuous auditing or daily perpetual inventory is one of the best ways to have your inventory accuracy in a cost effective manner. This should be a part of your daily routine activity. By doing so you are shielded from any kind of surprises that may surface if your inventory audits are not routine.

Create a detailed inventory audit plan, incorporating cycle counts and technology tools. Ensure staff training on the chosen methods to streamline the preparation process for a successful and cost-effective inventory accuracy audit.

Conducing an inventory audit without the right planning might become a real inefficiency for the company and there are some important points to ensure it’s well planned as; The needed capacity to run the audit entirely during the time scheduled. The right process to make sure the records are correct and following the plan. Contingencies for problematic scenarios. Leadership coverage to conduce the team to the planned goal. Planning the process is always very important to avoid spending money unnecessarily.

Planejamento é fundamental para o sucesso do inventário, além de olhar para experiências anteriores para aprender com os erros do passado. - garantir que não haja lançamentos pendentes - validar notas pendentes - identificar material fora de estoque para que não seja contado - dimensionar as equipes de contagem - identificação dos endereços e itens

Create a detailed inventory audit plan, incorporating cycle counts and technology tools. Ensure staff training on the chosen methods to streamline the preparation process for a successful and cost-effective inventory accuracy audit.

In my experience, for cost effective inventory audit. We should use the appropriate technology and tools. In majority of the organisations there are 3 audit cycles through out the year . Monthly, quarterly and annually for inventory and cycle count for their product and SKUs. If our product/ material are properly defined and allocated with SKU classification, batch number and MRP sticker labelling with barcode in define storage area and we are using proper end to end ERP integrated tools like WMS then audit process can be organised via bar code scanning without much manual intervention and in shorter time.

Implementing technology for inventory audits indeed revolutionizes the process, streamlining operations and minimizing errors. By utilizing barcode scanners, RFID tags, or mobile devices, businesses can expedite inventory counting while maintaining accuracy. Electronic capture and recording of data eliminate the need for manual entry, reducing the risk of human error and ensuring data integrity. Additionally, leveraging software applications or cloud-based platforms enables efficient management and analysis of inventory data. Businesses can generate comprehensive reports, swiftly identify discrepancies, and seamlessly update inventory records, fostering greater transparency and control over stock management. Ultimately, embracing

Utilizing ERP data can point already some risks on physical inventory accuracy. For instance monitoring of inventory inflation or negative inventory in ERP system can be a good place to start before launching the physical count.

The old way of cycle counting or inventory counting revolved around the year end inventory audit for tax reporting purposes. During this process the warehouse was in a semi-shutdown phase and everybody was involved in counting the inventory. There were many markdowns and inventory adjustments along the way. Now many companies are using new technology. One of the trends is to use autonomous drones to count inventory in real time and report back on how many and where specific SKU's (Stock Keeping Unit) are present. Another trend during Stock to Person pick and put-away, the inventory pods or crates are analyzed using Machine Vision and Artificial Intelligence algorithms for inventory accuracy and placement. Exciting times indeed!

The use of latest technology tools and softwares can only improve the inventory accuracy, real time discrepancy reports should be the ultimate target as much as early reaction with problem solving and corrective/ preventive action plans to avoid recurrency. Such tools might be connected to procurement processes and sources to speedup reactivity to the discrepancy found so to minimize the impacts, finally AI would be very effective to put in place the right buffers to prevent huge impacts in case of discrepancies.

Additional insights on using technology for inventory audits: 1.) Explore automation options for repetitive tasks such as data entry, report generation etc, to increase efficiency. 2.) Implement security measures to protect sensitive inventory data from unauthorized access and ensure compliance with privacy regulations. 3.) Leverage analytic tools to gain deeper insights into inventory trends and patterns based on historical data. 4.) Ensure seamless integration with existing inventory management systems to streamline flow of data. 5.) Utilize technology solutions that allow for immediate visibility into inventory movements and updates.

Insights on training and monitoring staff for inventory audits: 1.) Tailor training programs to suit the specific needs and skills of the staff involved in the audit process to ensure mastery of audit procedures. 2.) Provide on the job coaching and support during the audit process to address any challenges that arise in real time. 3.) Recognize and reward outstanding performance to motivate the rest of the staff and encourage desired behavior. 4.) Cross train staff on the diverse roles and responsibilities within the audit team to build flexibility and resilience in staffing arrangements. 5.) Conduct performance reviews regularly to evaluate staff performance against set goals and metrics and identify areas in need of improvement.

The success of an inventory audit depends largely on the skills and performance of the staff involved. Therefore, you need to train and monitor them properly. You need to provide clear and consistent training on how to use the technology, follow the procedures, and handle the inventory. You also need to monitor the staff during the audit, such as checking their accuracy, productivity, and compliance, and providing feedback and support. You can use metrics such as count accuracy, count completion, and error rate to measure and improve the staff performance.

Train a small QC Dept to verify/confirm/check Picker's accuracy. Ensure software is comprehensive enough to detail out the who, what and when. Follow up with Pick Associates to ensure they understand the expectation, and hold them accountable. Errors will be made...we are human beings but if you don't set a high standard...you'll never achieve it

People is and will always be the key. If people are safe (and while they feel safe), well payed and well trained, the results will be stunning. My key word is "Safe": not only referring to all HSEQ conditions, procedures and "ceremonies" but "SAFE" in terms of family wellbeing, healthy social relationships, empathy, awareness and acknowledge for each one or your teammates (barely called employees or colleagues)... that kind of safety is the highest-rated performance enhancer.

Justamente me adelante en el punto anterior, la capacitación y el seguimiento es fundamental para ayudar a lograr el éxito, tener el personal adecuado para cada uno de los puestos, elegir lo lideres correctos en los inventario.

A guide to reviewing and improving inventory audit processes: 1.) Establish a feedback loop with warehouse staff, managers etc, to gather insights to enhance the audit process. 2.) Compare the results of the inventory audit against best practices to identify areas where opportunities for improvement exist. 3.) Evaluate the effectiveness of the technology utilized during the audit and explore opportunities for further enhancement to improve on efficiency and accuracy. 4.) Gather feedback to refine training methodology to address any gaps identified among the audit team members. 5.) Obtain feedback from the parties impacted by inventory accuracy issues to prioritize improvements that may be of benefit to stakeholders.

In my opinion, there is no silver bullet that solves all the inventory control issues. The key is to pick one method or the other and consistently doing it and adjusting the discrepancies immediately. Over a period of time, the inventory team themselves will point you to the common contributing causes like units of measure (feet vs meters), Units vs Sets, rolls vs meters, etc.,

To start the review and improvement process for the inventory audit, follow these steps: Compare physical count with inventory records Investigate the causes of discrepancies: Adjust inventory records:s, or descriptions of items in your inventory system. Evaluate the effectiveness a Costs Benefits: Assess the benefits obtained from the inventory audit. Challenges Identify areas for improvement: Based on the evaluation conducted in the previous step, identify specific areas where the audit process can be improved. Ut. Root cause analysis: SWOT analysis: PDCA cycle: Implement improvements Monitor and reassess By following these steps and utilizing various tools, you can consistently review and improve your inventory audit process.

This essential to maintain supply level confidence and has to be regularly every day, every week at SKU level along with posting the discrepancies.

El análisis sobre el resultado del inventario nos ayudara a identificar las zonas expuestas en la operación que generen ruido (Recepción, Almacenamiento, Picking, Preparación, Entrega de productos, Transportistas) pero no podemos dejar de lado los posibles errores de sistema donde alguna interface no funciono dejando documentos que mueven inventarios sin la visibilidad correcta en sistemas.

Start with putting your best most accurate, consistent, and attentive employees on receiving. If your receiving is on point audits/counts are less necessary or more just a metric to prove you are keeping accurate records. Train on picking UOM and focus on commonly miss picked items. Inventory audit and accuracy does not live in a bubble. Everyone needs to do their part to maintain healthy inventory records.

En todos los casos hay que considerar: 1) El 70% de los problemas de inventario se mitigan con buenas y robustas practicas en recibo y acomodo. 2) El entrenar a los miembros del equipo, sensibilizando sobre la importancia del uso correcto de tecnologia, asi como de las rutinas basicas de acomodo y retiro de articulos de ubicaciones. 3) Disciplinas operativas, control de capacidades instaladas y no romper procedimientos. 4) Respeto por las personas, sus funciones y las de los compañeros.

Stock differences are most likely to occur at picking locations. More likely with fast movers than with slow movers. I found it very practical to work with random picking locations. This way for every replenishment a picking location is emptied. A perfect moment to count. Fast moving products are replenished more often so will have automatically more counts, exactly what we want. In case of stock differences one of these problems happens: -the orderpicker needs to pick more than is available at the picking location. -at replenishment a location is not empty yet. So without actually counting stock differences results in problems fast, so the can be solved fast.

É necessário conferir o recebimento de mercadorias com bastante atenção, Separando e organizando, Garantindo a conferência de todo o mix de produtos. O ideal é conferir todos os itens na nota fiscal antes do armazenamento.

De fato, concordo com todos os pontos citados neste artigo, se complementam e geram uma excelente receita de sucesso para uma boa auditoria de inventário econômica. O único ponto que acrescentaria devido minha experiência é um controle através de bons relatórios gerenciais para identificar quais problemas, quais ações devem ser implementadas, investimentos e quais procedimentos, processos e tarefas foram auditadas, desta forma, também gerará histórico para novas auditorias.