I am always amazed when I would talk with competitors or fellow business owners on what they are doing to help improve their inventory purchasing and planning.
I would ask them questions if they calculated Saftey Stock or Economic Order Quantities or peformed Cycle counts etc. The crazy thing is once these things are in place, it's not that difficult (or costly) to keep in place.
The plan with this blog is to put together a post everyday and it will be on a variety of topics. Some of those topics will include accounting, marketing, inventory, operations, SEO, CPC, email, and other business and non-business topics.
Today's blog we will talk about Cycle counts. Cycle counts mean you count your inventory a couple times a year in batches. E.g. we focused a lot on our high value items that were easy to count. You don't have to count every little inventory piece several times a year. If you start counting inventory more often and updating the inventory in your system, you will be able to know what you have, understand which ones are consistent problems, and maybe even identify if someone is stealing from you.
Theft brings up another suggestion, make sure who is doing the counts is someone that you can trust and always rotate the counts amongst several people. When we did our counts, we would not give them the number of pieces they should have on the shelf or bin.