

How much does stocktaking cost?

When we ask the manager or owner of a company how much stocktaking costs,

  • usually we get the answer like: "Er, well… I don’t know it exactly." or
  • it is less common like: "In fact, it doesn’t cost anything." because
    • we do it with our own employees (but the time of the stocktaking is given as a leave),
    • we do it with our own devices and software (that we bought from parent company)
    • etc.

The abovementioned answers should be inspected.

As we have experienced, the cost calculation of stocktaking is given little significance, and stays at the bottom of a priority order.

So You do not remain in a shortage of information, we would like to share some insights of ours.

You will need each of these six resources in order to get a precise, and quick stocktaking.

Without being exhaustive, we describe some tasks, and cost centers from the hexagons, if You are interested, click here!

Experienced project manager:

  • prepares the stocktaking instructions and schedule, translates the expectations of the parent company
  • prepares the training materials and footage
  • chooses the project management team
  • makes the project plan
  • acknowledges the project plan with the management, feedback
  • tells the instructions and schedule to the management team
  • ensures the stock takers (quantity and quality)
  • etc.

Acclaimed management team:

  • prepares and updates the stocktaking map
  • chooses the preparatory and stocktaking coordinators
  • prepares the operative schedules (preceeding day, stocktaking day, next day), which are subject to change
  • trains the coordinators (theory, practice, OSH)
  • ensures supplies needed during stocktaking
  • etc.

Well-defined processes:

  • Should the stocktaking take place during opening hours or on close? How? Advantages? Disadvantages?
  • Are we supposed to count once and record it in ERP software (e.g.: SAP, MS Dynamics etc.), or
    • We are supposed to check the counts as well
    • How should we do the checks?
      • Randomly? Or
      • Comparing with the records?
  • Are we to use labels for counting?
  • Are we to take the stock based on papers? Or digital data collectors? Which one?
  • What should be done with foreign items and goods in consignment?
  • How many breaks are allowed? How should we organize it?
  • How should we move supplies to the site? What exactly is needed? Who is responsible for what?
  • etc.

Responsible stock takers:

  • How are we supposed to recuit the stock takers? (by application, reliability, are students allowed, etc.)
  • What knowledge should we confer to them? Or it is enough for them to come 5 minutes before the stocktaking, they just need to COUNT…
  • How do we know they are ready?
  • How many stock takers are needed? Will everybody come? Whose responsibility is it?
  • What kind of responsibilities do the stock takers have? How am I to know?
  • etc.

Rugged data collecting devices:

  • How much depreciation does a data collector suffer during one stocktaking?
  • Should we form a reserve for development? How much does a data collector cost?
  • Who does the maintenance? What warranties should they offer?
  • Are the data collectors ergonomical? Or they just make matters worse…
  • etc.

Reliable software:

  • What should we do if the server goes down during stocktaking?
  • Is software development necessary to these new products? They have other kind of bar codes…
  • We need a different method. Can the software do it?
  • Does it tell me the expected time of finish?
  • We need to maintain a software. How much does it cost?
  • etc.

A Stocktaking with own resources not only come along with these abovementioned costs, but other, less recognizable ones as well, for instance:

  • Before and during stocktaking, Your salesmen and saleswomen cannot sell or replenish all the time, because they focus on the stocktaking preparations » customer satisfaction level drops » revenues plummet
  • Your storekeepers focus on stocktaking preparations as well, rather than with order picking or other activities
  • Your employees will be more stressed in the days and weeks before stocktaking, and it will show in their work
  • those participating in the stocktaking should be held a couple of trainings (organizing), otherwise the stocktaking will be hindered by questions and mistakes
  • the applicants fo the stocktaking should be registered (call-offs, constant rescheduling)
  • colleagues coming from other departments or locations may have questionable interest in the result of the stocktaking (not to mention deliberate mistakes)
  • etc.


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