Incremental Warehouse Stock Take

The major condition with this method is that will be NO CROSS-MERCHENDISING, and that every location and bin location must becovered during the stock take.

If all the items are flagged as UNCOUNTED.
We are able to produce reports on counted and uncounted items.
The system has been adapted to handle this separation.

At the end of every day, the areas that have been counted will be finalized, and those items then marked as counted and verified.
All items transferred out of the warehouse will reduce the stock holding as usual.

If the system encounters items that have already been counted then we will set them aside and proceed with the stock take.
At the end all inadvertently cross-merchandised items will be dealt with.

All the standard procedures that we have explained will apply, except that the stock will be finalized at the end of every day, as opposed to at the end of the stock take.

Reports have been adapted to cater for this new incremental stock take.

Please note that the Floor layout and the division of your locations into Zones and bin locations will be as important now as before and we expect you to proceed with the original plan in every other respect.

Rules of the game.

  1. Every location selected for counting must be clearly separated from other locations.
  2. From the beginning of the count of a location, there MUST be no movement in the location, until that location is complete, and finalized.
  3. A location is defined as a building, or clear segment of a building.
  4. All staff must be educated on the separation of locations before the start of every day.
  5. No item will be entertained in multiple bin_location.
  6. When the system warns that the single location has been breached, staff will set the offending article aside and MOVE item to a special location that will house all errors. These will be dealt with at the end.
  7. IT staff will produce a daily report of:
  8. Locations counted for the day.
  9. Cumulative stock take values. – (less issues out)
  10. Remaining stock (uncounted)
  11. d. Daily reports will be studied to assess the accuracy of the cost , FOB, and selling value.
  12. e. Stores managers will be given a location by location valuation on stock and they (who know value) will advise IT of areas that are not reasonable.
  13. i. This is a very valuable tool in that some locations with counting errors will “stand out” and be identified and corrected.
  14. f. CAD will if given the “go ahead” proceed with the preparation of these reports.
  15. Management will sign off on the reports on a daily basis.
  16. Stock takes will not exceed a pre-determined shift. No staff will work longer that a pre-arranged shift as this is the sure way to fatigue related errors.
  17. Staff will be incentivised, for accurately counted areas and penalized for areas that fail the cross-checks.
  18. An agreed number of locations will be recounted to establish the integrith of the count. Every day a randomly selected range of locations will be recounted and if the errors are within the agreed error factor all locations will be assumed to be correct in that shift. If the error factor is higher that the agreed arror allowance the entire shift will be assumed to be compromised.
  19. All staff will be pre-tested to acknowledge their ability to count and transcribe counts.
  20. a. The training and pre-testing location will be a mixed, “difficult to count location”, created for this very purpose.
  21. b. Any staff member who has failed the tests will not be allowed into the stock take.
  22. The locations that are selected for count will be identified at least 24 hours before hand.
  23. The stock take manager will draw up a complete schedule immediately.
  24. a. The schedule will determine the order in which the stock take will proceed.
  25. b. The preparation crew will be assigned areas to prepare, and will hand over prepared locations, 24 hours before they are counted.
  26. c. Stores managers will need to consult with each other to make sure that the store is fully stocked before each location is selected and sealed.
  27. d. Staff MUST be clear on which locations are being selected and sealed.
  28. e. I will need the following information BEFORE YOU START:
  29. i. A full copy of all floor layouts, with bin locations and zones, marked clearly.
  30. ii. The schedule of how the Stock manager, intends to proceed, and in what order.
  31. iii. PG will have to elect the Stock take manager, IT crew, Floor Supervisors, and preparation teams. If I am given this list, it will assure me that you have sufficient management resources to manage the process.
  32. iv. A listing of how many scanners and docking stations will be used in the process.
  33. v. A listing of how many people, scanning personnel and counters will be used.
  34. f. Stock take manager will walk through the selected locations every morning to confirm that all items are sorted, set, tagged and ready to count.
  35. g. Identifications of Bin_locations must be done IMMEDIATELY. The method of identification can be stickers, labels or ID Tags and these must be affixed up front.
  36. h. The Floor layout must have the bin_locations identified on the map.
  37. i. At the end of every day the stock manager will sign of the locations on the map to assure us that every location has been counted. No exceptions.
  38. j. If there is contamination between locations the IT crew must be informed and they will be trained on the procedure to follow.
  39. No sorting, of items will be allowed on the day of count.
  40. No movement of items of any kind will be allowed during the days count.

From our Failures in the past we have further learnt that you must elect a start date and and end date for the entire process and once the process is underway these are not negotiable.

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