Stocktaking: The Ultimate Guide (Stocktaking Procedure)

This document provides you the essential guide to developing your very own physical Inventory or stocktaking procedure and training guide bespoke to your business needs.

This guide is 40 pages long with a word count of 6752. 

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Objectives of this Stocktaking Procedure:

    • Ensure records held for the stock are accurate
    • Have an accurate basis for planning and stock control procedures as this process will enable you to assess the level of stock loss within your business’ sites.

These Aims and Objectives will, therefore, guarantee a high level of accuracy of your inventory returns, lead to better management of stock and therefore lead to a maximizing of profit margins & cash flow.

I have written this stocktaking procedure from a medium-sized company perspective with multiple sites and staff thus taking into account as many variants as possible so you can then customize to suit your business.

All those involved in the stocktake procedure should adhere to the steps set out in this guide so as to maximize achieving the aims and objectives set out. This will guarantee confidence in the outcome every time.  Consequently, the need for repeated physical re-counts (the Reconciliation Process) where inventory returns show discrepancies, with time, should progressively reduce as you conduct stocktake year after year with consistency and efficiency.

At the End of This Guide…..

Broadly speaking, by the end you will be able to have a sound understanding and confident in your ability to answer the following questions confidently with a clear understanding of how all the different components fit and follow one another when using this to develop you own stocktaking procedure and training guide:

    • How do I prepare and organised a Stock take?
    • Who is involved in carrying out and completing the Stocktake, how and in what capacity? Defining roles and responsibility
    • When do I schedule a stocktake?
    • What inventory do I include and exclude in the stocktake counting process
    • What do I look for in the item I am counting?
    • What Is the Reconciliation Process, why do I need it and how to complete it
    • Can I confidently train staff?

To gain better understanding read my articleImportance of Stocktaking – 7 Proven Advantages Which Defines the Purpose of Stocktaking for Your Business”

Table of Content from Stocktaking Procedure

Section A: Roles and Responsibilities


A1.      General Roles, Responsibilities & Expectation of all Stocktake Personnel    


A2.      Duties of Inventory / Stocktake Personnel

            A2.1     Duties of a Store / Site / Warehouse Controller

            A2.2     Duties of a Counter

            A2.3     Duties of a Ticket Writer

            A2.4     Duties of Checker

            A2.5     Duties of an Auditor

            A2.6      Duties of a Ticket Controller


Section B: Preparation Prior to Stocktake

B1.      Pre-Emptive Preparation: Date, Site and Personnel

B2.      Pre-Emptive Preparation: To Inventory or To Not Inventory…..

B3.      Pre-Emptive Preparation: Warehouse / Stockroom Cut-Off Timetable

B4.      Documentation – The Stocktake Pack


Section C: Implementing the Stocktake

C1.      Monitoring Inventory Activities


Section D: Reconciliation and Concluding the Stocktake

D1.       Reconciling and Investigating the Results

D2.       Release of Sections and Site

D3.       Review and Develop Product Loss Procedures

D4.       Set up Review Dates

D5.      Conclusion


Section E: Appendices

E1.        Sample tickets and forms.


Stocktaking Procedure

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Dr. Muddassir Ahmed
Stocktaking: The Ultimate Guide (Stocktaking Procedure)
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Stocktaking: The Ultimate Guide (Stocktaking Procedure)
The Ultimate Stocktaking procedure is full of insights and strategies for business owners, supply chain professionals and students alike.
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Dr. Muddassir Ahmed
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