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Benefits of stock take

by Edward

Benefits of stock take

Have you ever made less profit due to stock loss? The amount of frustration that goes with it seeing that you can no longer expand your business because of stock loss?

This is one of the areas of business that really needs to be focused on, yet nobody enjoys doing it!

Leka Rona Trading is a specialist service provider to the Retail and Logistics industries, offering bespoke solutions in inventory stock counts. The company a brainchild of Corné Vermaak, an industry specialist with extensive experience in the Inventory Management, Logistics, And Distribution and Supply Chain fields.

In a product sales environment, your inventory is money and proper control is vital! We have just the system to ensure total accuracy!

Firstly what is stock take?

Here is the definition:

Stock-taking or "inventory checking" is the physical verification of the quantities and condition of items held in an inventory or warehouse. This may be done to provide an audit of existing stock. It is also the source of stock discrepancy information. Source: https://en.wikipedia.org/wiki/Stock-taking

Inventory management is truly one of those love hate relationships that needs to be looked at continuously.

Here are some of the benefits of proper inventory management:

Benefit 1 : Increased Profits

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When you do stocktakes on a regular business you will have more control over your profit. Simply said, when you know what gets stolen most you can put measures in place to prevent the stock loss.
When inventory goes missing, you lose both the profit and the money you paid for the stock.

Profit at the end of the day is why we do business. With better inventory management we can have more profit and the business can keep on expanding instead of coming to a grinding halt because of stock loss.

Benefit 2 : Theft control

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Unfortunately we live in a world where stock goes missing due to theft. The key however is to identify which items get stolen the most so that you can put measures in place to prevent theft of those items.

We have found in our experience that 80 of theft happens on 20 percent of stock items.

The key is however to identify those items and monitor them carefully. This will make a major impact in your business and make more money available to expand. This can only be done by doing stock takes on a daily basis. When you do not control your inventory it leaves room for things to go wrong very quickly!

Identifying the top 20 percent of items stolen from your shop is crucial for proper inventory management!

Benefit 3 : Peace of mind

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When you continuously do stock counts, you are in control at all times. You know exactly what is going on in your store and you are in a position to put measures in place to prevent further loss.

When you know for a fact that everything is under control you can sleep peacefully at night.

You do not have to be stressed out wondering whether inventory is going missing because you know exactly what is going on and you are in full control of your business!

Summary

Stock counts are a burden in the behind and a lot of companies try to hold off until the very end before doing it.

When you however put a system in place where inventory is managed and counted on a continuous basis it is no longer a massive mountain to climb at the end of every financial year end.

You are also able to have better control over your business.

Implement stock-takes into day-to-day procedures. This makes it a lot easier to manage in the long run. Hire a company that perform counts according to your schedule. It will benefit your business over time.

Should you have any queries how to properly manage your inventory feel free to contact us, we are looking forward to assist you! Simply enter your email address at the bottom of this post and we will be in contact with you.

Feel free to download our stock-take cheatsheet by clicking the button in the top right corner of this page

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