How can you conduct an inventory accuracy audit for perishable goods?

BEST PRACTICES INCLUDE: A. Invest in an WMS, inventory management system. B. Standardize bins and pallet sizes for storage. C. Work with a fulfillment partner experienced in perishable products. D. Implement cycle counting regularly. E. Perform regular inventory audits, PARTICULARLY ON FAST MOVING SKU's. F. Invest in training.

Utilize Technology: Implement barcode scanners or RFID tags to enhance the accuracy and efficiency of inventory audits Thorough Review of Inventory Management System: Conduct a comprehensive review of the inventory management system, physical counts, and relevant documentation to ensure accuracy Maintain Accurate Inventory Levels: Regular audits help identify overstocked or understocked perishable items. Implement Regular Audits: While businesses typically perform audits annually or quarterly, perishable goods may require more frequent checks to maintain accuracy Optimize Supply Chain: Improving inventory accuracy contributes to optimizing the supply chain, meeting customer demand, and enhancing overall business efficiency and profitability

>>> Know your products : - what is the value per box (The more expensive, the more counted) - what is the potential danger to your customers in case of out of shelf life (ecoli, toxicity...). Low shelf-life = High countage. That is the A class to be counted at certain periodicity (some at all picking, some every three, some at starting team)

Defining the scope is the first step in an audit of perishable goods. One time at work, I decided on the types of goods, locations, and time periods to audit. In my experience, determining the frequency and method of the audit, whether it’s periodic, random, or cycle count, is crucial. One thing I’ve found helpful is understanding that a periodic audit is done at regular intervals, a random audit is done without prior notice, and a cycle count is a continuous process. Remember, a well-defined scope is key to a successful audit.

WMS is a powerful tool since a counting list can be printed at certain periodicity. Use that for short shelf life products and high value. Check the loss of A class items to check forecast accuracy and some other areas of loss (order cancellation, departure failures...)

Preparing the right tools is a crucial step in an audit of perishable goods. One time at work, I gathered tools like barcode scanners, labels, scales, thermometers, and checklists. In my experience, ensuring the Warehouse Management System (WMS) is updated and accurate, and having access to inventory reports and records is key. One thing I’ve found helpful is communicating with the warehouse staff about the audit schedule, objectives, and expectations. Remember, well-prepared tools and clear communication are essential for a successful audit.

The more gaps appearing show a malfunction at the Warehouse. Ask the team, deploy PDCA, in case of continuous failure, check with more precision (who does what, what team or shift, what suppliers and customers at stake).

One thing which may be very useful for the ones who are doing the stock count/audit is to have prior information about the products specially the perishable ones. The information can be related to the material data, it's storage requirements, safety etc. This is more useful for the external audit team. In this way they will be able to do the audit in a more precise way & the warehouse team will be knowing that they can't give any wrong feedback about any of the product to defend or hide any of the discrepancies.