Why Should Retail & Wholesale Businesses Give Importance to Stocktaking

What is stocktaking? Why is it important for both retail and the whole business? Have you ever wondered about these questions in your mind? If so, you’re reading the right blog.

Here we will try to clear some of the concepts related to stocktaking. Read our blog until the end

What is Stocktaking?

Stock-taking is the action of physically verifying the quantities and conditions of items held in an inventory or warehouse. Normally, stocktaking is done at the end of every month.  However, it can be quarterly,  biannually, or yearly. It depends on the requirements of the business.

Why  is Stocktaking Necessary for Retail and Wholesale Businesses

The retail business is dealing with products in small quantities and serving them to end-users  Every single product of the inventory matters a lot for business. That is why stocktaking is an essential activity in the retail business.

On the other hand, wholesale businesses always deal in large quantities. They deal with both manufacturing companies and retailers. For them, stocktaking is important to avoid stock shrinkage due to unforeseen circumstances.

 Some of the ways stocktaking helps businesses include:

  • Measuring Performance of the Inventory

Stocktaking helps evaluate the actual performance of the inventory.

Furthermore, with stocktaking, you can analyze the sales trend of the products. The detailed stock enables you to calculate different formulas to measure the efficiency of the inventory.

  • Analyzing Inventory Shrinkage

In any business, stock shrinkage can be possible due to various reasons. It includes damage, spoilage, or theft causes. Whatever the reason is, loss of stock is bad for any business.

Some employees are not honest with their companies. They are making frauds and false reports.  Stocktaking can reveal their corruption.

  • Analyzing Cost

Stocktaking is necessary for cost analysis.  as inventory expenses have direct effects on the performance of the business.  Stocktaking at the end of every month helps reveal the weak points of your warehouse.

 A clear analysis of cost helps you plan strong strategies to control the money spent on business.

  • Product Analysis

In business, all products are not equally popular and selling. In manufacturing, not every material is used in bulk.  Stocktaking gives a complete product analysis.

 This helps businesses know which products are selling and which are available in excess quantity.

  • Improving Both the Sales and Purchase Flow

Stocktaking evaluates each and every step of inventory management. The purchase, placement, maintenance, sales, and delivery to customers are all part of inventory management. Stocktaking outlines the weaknesses of these processes, allowing owners to make smart and urgent actions.

What is an Efficient Way of Stocktaking?

Stocktaking is an important process and should be handled with care. For this purpose, businesses should adopt a good inventory software system like SeeBiz Inventory.

  • Why SeeBiz Inventory

SeeBiz Inventory is an inventory management system that gives complete access to all inventory information in one place.

Whether it is wholesale business or retail business, it will speed up the process of stocktaking. Furthermore,  SeeBiz Inventory:

  • Has a flexible structure for both wholesale and retail businesses. 
  • Is easy to use and understand. All employees can easily use it due to its  simple user   
  • Can track all of your inventory
  • Helps save the inventory from spoilage as it records and alerts about the expiry date of products.
  • Gives you a complete analysis of sales and purchase by recording the complete process of purchase flow and sales flow. 
  • Manages contacts. Users can import, export, or synchronize all of their   

Assign the different tasks to managers and stockers.  Try SeeBiz Inventory as it will help you evaluate the inventory performance.  Plus, you can complete stocktaking in less time with more efficiency.