Tailor Made Counting

From a mom and pop, to a global retail powerhouse. What method of inventory counts best suits your needs?

Keeping track of inventory is like navigating a ship through stormy seas—if you lose your way, you’re bound to crash. Whether you’re running a cozy little boutique or a bustling big-box store, knowing what you have in stock is crucial. But with so many different methods to choose from, how do you know which one’s right for you?

Let’s dive into the different types of inventory counts: adhoc counts, cycle counts, and wall-to-wall counts. We’ll look at what makes each one tick, who should use them, and when’s the best time to put them into action.

1. Adhoc Counts: Quick and Easy, but Watch Your Step!

What It Is: Adhoc counts are like quick spot checks. You count a specific item or a small section of your inventory whenever you feel like it—or when you suspect something’s off.

Best For:

• Small retailers with limited inventory.
• When you need to confirm the quantity of a specific item quickly.

Pros:

• Flexible: You can do it anytime, anywhere.
• Fast: No need to shut down operations or set aside hours to count.
• Targeted: Focus on high-value items or areas prone to shrinkage.

Cons:

• Inconsistent: Because it’s not scheduled, it can lead to gaps in your overall inventory accuracy.
• Limited Scope: You’re only counting a small part of your inventory, so it doesn’t give you the full picture.

Best Time of Year: Do adhoc counts during peak seasons like the holidays when specific high-demand items need to be closely monitored.

2. Cycle Counts: The Steady Navigator

What It Is: Cycle counts involve counting a small, manageable portion of your inventory on a regular schedule. Over time, every item in your inventory gets counted without having to shut down your business.

Best For:

• Medium to large retailers with diverse inventories.
• Businesses with a solid inventory management system in place.

Pros:

• Less Disruptive: No need to close your store; counts happen during regular business hours.
• Consistent: Regularly counting inventory improves accuracy over time.
• Focus on Problem Areas: You can schedule more frequent counts in areas where you know there are issues.

Cons:

• Requires Discipline: You need a well-organized system and team to ensure counts happen as scheduled.
• Partial Coverage: If not managed properly, some items might get missed or counted less frequently.

Best Time of Year: Cycle counts are best done year-round but can be intensified during slow seasons like late winter or mid-summer when foot traffic is lower. This gives you a chance to catch up and prepare for busier times.

3. Wall-to-Wall Counts: The Big Overhaul

What It Is: Wall-to-wall counts are the granddaddy of inventory counting. It’s a full physical count of every single item in your store, often requiring you to close up shop for a day or more.

Best For:

• Large retailers, especially those with high-value or seasonal items.
• Businesses that need a full reset or haven’t counted inventory in a long time.

Pros:

• Complete Accuracy: You get a full, accurate picture of your inventory.
• Audit Ready: Perfect for year-end audits or preparing financial statements.
• Identify Discrepancies: Catch and correct major discrepancies that might have gone unnoticed.

Cons:

• Disruptive: You may need to close your store or adjust hours, which can impact sales.
• Labor-Intensive: It’s a big job, requiring all hands on deck.

Best Time of Year: The ideal time for a wall-to-wall count is at the end of your fiscal year or after the holiday season. This ensures you start the new year with accurate inventory numbers and can plan for the year ahead.

Conclusion: What’s Right for You?

Choosing the right inventory count method depends on your store size, inventory type, and how much time and resources you can dedicate to counting. Here’s a quick recap:

• Small Retailers: Adhoc counts for quick checks on high-demand items.
• Medium to Large Retailers: Cycle counts for consistent, ongoing accuracy.
• All Retailers: Wall-to-wall counts for a comprehensive, annual reset.

No matter which method you choose, the key is to stay on top of your inventory. After all, the smoother your inventory management, the smoother your business sails—without any unexpected storms!

Don't know which method is right for you? Fear not, young grasshoppa' OmniCounts is here to help! Visit the OmniCounts website to learn more or reach out to me personally!