The first reaction to any physical inventory count that results in numbers outside an acceptable range should be to increase the frequency of counts until the results fall into line. If this simple rule is followed, the implication for not only the importance of careful counts, but the importance of following good day-to-day operating procedures will be much better understood by the whole staff. Haste makes waste, and the best way to reduce the amount of time spent taking a physical count is to make the physical inventory and every transaction of every day as accurate as possible.
As unpleasant and burdensome as physical counts are, they are critical to the success of every independent retailer. While every owner/operator, who has ever seen the effect of shrinkage on a financial statement, is well aware of the importance of accurate and timely physical counts to control shrinkage, it is not as well understood by the people actually recording the counts. Hence, the first step in assuring accuracy in a count is to ensure that all staff members or counters understand just how important a thorough and accurate count is. The first step in planning for every count should be to make sure that everyone understands how important accuracy is and why such an unpleasant experience is so important.
The first reaction to any physical inventory count that results in numbers outside an acceptable range should be to increase the frequency of counts until the results fall into line. If this simple rule is followed, the implication for not only the importance of careful counts, but the importance of following good day-to-day operating procedures will be much better understood by the whole staff. Haste makes waste, and the best way to reduce the amount of time spent taking a physical count is to make the physical inventory and every transaction of every day as accurate as possible.As unpleasant and burdensome as physical counts are, they are critical to the success of every independent retailer. While every owner/operator, who has ever seen the effect of shrinkage on a financial statement, is well aware of the importance of accurate and timely physical counts to control shrinkage, it is not as well understood by the people actually recording the counts. Hence, the first step in assuring accuracy in a count is to ensure that all staff members or counters understand just how important a thorough and accurate count is. The first step in planning for every count should be to make sure that everyone understands how important accuracy is and why such an unpleasant experience is so important.
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