Make the Best of an Annual Physical Inventory
Jason Bader of The Distribution Team shares six tactics for making the best of a bad practice.
(Boonton, NJ, August 7, 2014) A significant number of companies still conduct old-fashioned annual physical inventories. Its a practice that endures despite its downsides, inventory management experts say.
An annual physical count is one of the dumbest things we do, says Jason Bader of The Distribution Team.
While annual physical inventories are imperfect, there are ways to make them better, says Bader in the August issue of Distribution Center Management.
For example, form your count teams in advance. Don’t leave this to chance. If you do, inexperienced workers will wind up together, creating the potential to sabotage your count.
A smarter approach: Form two-person teams, pairing an experienced person with a worker who doesnt regularly touch the inventory.
Then, make sure everyone knows the role they play on the team. For the most accurate count, the experienced person should be counting the items while the rookie does the recording.
More on a successful physical inventory, plus an unconventional approach to safety, and how to calculate NPV and IRR appear in the August issue of Distribution Center Management.
About the Distribution Group
For more than 40 years, Distribution Group publications have helped distribution center and warehouse managers increase productivity, cut costs, and meet increasing customer demands. Distribution Group publishes Distribution Center Management newsletter, books and reports, and a free e-newsletter.