Frequently Asked Questions

What is stocktaking, and why is it important?

Stocktaking is the process of counting and recording inventory to ensure that stock levels match business records. It helps identify discrepancies, prevent losses, and improve financial accuracy. Regular stocktakes also assist with forecasting demand and making informed purchasing decisions.

How often should a business carry out a stocktake?

The frequency of stocktaking depends on the type of business and the volume of stock movement. Retailers with fast-moving stock may conduct stocktakes weekly or monthly, while others may do it quarterly or annually. Regular checks help maintain stock accuracy and prevent discrepancies.

What is the difference between stock control and inventory management?

Stock control focuses on maintaining the right quantity of goods to meet demand without overstocking or running out. Inventory management is a broader process that includes ordering, storage, tracking, and sales of stock to ensure smooth business operations.

How does effective stock management benefit a business?

Good stock management ensures businesses have the right products available at the right time, preventing lost sales due to stock shortages. It also reduces excess stock, minimises waste, improves cash flow, and enhances customer satisfaction by ensuring timely order fulfilment.

What common stocktaking challenges do businesses face?

Stocktaking can be affected by human error, theft, supplier inconsistencies, and discrepancies between recorded and actual stock levels. Regular audits, staff training, and the use of stock management software can help improve accuracy.

How can technology improve stock control?

Modern inventory management systems allow businesses to track stock in real time, automate reordering, and generate accurate reports. Barcode scanning, RFID technology, and cloud-based software reduce errors and streamline operations.

Do I have to use my ERP system for stocktaking?
No, stocktaking software is designed to integrate seamlessly with multiple systems. Even the most complex ERP platforms can typically be connected to a stocktaking solution, ensuring flexibility and efficiency.

What is the ‘bullwhip effect’ in inventory management?

The bullwhip effect occurs when minor changes in customer demand lead to significant fluctuations in stock orders across the supply chain. This can cause overstocking or stock shortages. Improving demand forecasting and supplier coordination helps mitigate this issue.

How should businesses deal with stock discrepancies?

If stock levels don’t match recorded data, businesses should investigate potential causes such as miscounts, theft, or administrative errors. Introducing stricter stock control measures and performing regular cycle counts can help prevent discrepancies.

What is Just-In-Time (JIT) stock management, and how does it work?

JIT is a system where stock is ordered and received only when needed, reducing storage costs and minimising waste. While this method is cost-effective, it requires precise demand planning and a reliable supply chain to avoid running out of stock.

Why should businesses consider outsourcing stocktaking?

Outsourcing stocktaking to a professional service ensures an accurate and unbiased inventory count. It saves time, reduces internal workload, and provides expert insights into stock control and loss prevention.