Stop Thinking of Stocktaking as a Cost...

Stocktaking is often viewed as an inescapable necessity, a burdensome means to an end without other gains. However, this perspective overlooks the substantial benefits of effective use of stocktaking data for an organisation. Rather than seeing it as a cost, businesses should recognise stocktaking as an investment in improving efficiency, stock accuracy, sales performance, and overall profitability.

Improved financial accuracy

One of the primary purposes of regular stocktaking is valuing the stock for financial accounting purposes. Discrepancies between recorded and actual stock levels can lead to significant financial misstatements. Regular stocktaking helps identify these discrepancies, ensuring that financial records are accurate and reliable. Reliable numbers enable informed decision-making and maintain managerial confidence.

Integrate stocktaking with business strategy

To shift the perception of stocktaking from a cost to an investment, businesses should focus on the benefits when stocktakes are used strategically. Suppose one accepts (and should) that a stocktake optimises in-store stock availability, maximising selling capability and customer satisfaction potential. In that case, it follows that stocktakes in top-performing stores, before a peak trading period, will reward a clever retailer with heightened sales performances in those stores when customers are most active. More stocktaking, more profit.

Additional ‘dynamic stocktakes’ can bring those sales-enhancing benefits when applied to numerous peak trading periods. Back to School? Easter? Major sporting events? There are many opportunities to take advantage of. A dynamic stocktake isn’t just for Christmas.

How about shifting additional focus to the stock types that are working hardest for your business? More frequent departmental counts on these departments can ensure they are at their very best all year round, working even harder.

Stocktaking should not be seen as an isolated task but as an integral part of the overall business strategy, something to be experimented with, something that can pay for itself, and more, if used more creatively.

By incorporating stocktaking data into broader business analytics, companies can gain better insights into their operations. This integration helps identify trends, improve processes, and enhance overall efficiency.

Reframing stocktaking as an investment rather than a cost can transform how businesses use it. Accurate and efficient stocktaking leads to improved financial accuracy, optimised inventory management, optimal stock availability, and enhanced customer satisfaction. Unlock the full potential of stocktaking, turning it into a powerful driver of efficiency and profitability.