TLIA2022 – Identify stock discrepancies Copy
Element 3: Identify stock discrepancies
3.1 – Discrepancies in type, number and quality of stock are accurately recorded and documented
If you undertake stocktakes regularly (as you should), it is inevitable that you will encounter discrepancies at some point. The measure of your business’ working practice is not whether you encounter discrepancies, but the frequency with which they occur and how you deal with them.
Discrepancies can occur for a number of reasons, including:
Stock loss due to damage
Stock being stored in the incorrect location
Human error during the stocktake process
Stock loss due to theft
Stock being labelled with incorrect identification
Stock being mistaken for a similar product
Inbound stock not being recorded accurately
Faulty inventory management software or stocktake equipment
Incorrect unit of measurement being counted.
Whenever you encounter a discrepancy, make sure you make a record of it and arrange a time to investigate what has gone wrong.
To resolve a discrepancy, you could:
Re-count the stock in question
Check if the stock exists in another location
Make sure the correct unit of measurement was used
Verify that the product identification number is correct
Ensure the product has not been mistaken for a similar product
Scan your inventory records for errors
Check that there is no missing paperwork
Investigate whether employees or customers have been stealing stock
Speak to the warehouse/storeroom managers/supervisors.
3.2 – Products stored in inappropriate storage locations are relocated and stock records are adjusted
Relocating products from inappropriate storage locations
Often, you will find that stock has been stored in the wrong place. This is an easy mistake to make; employees may have misread the stock identification number, or set the stock items down with the intention of later moving them. In any case, it is your responsibility, as soon as you realise that the stock is in the wrong place, to relocate it and adjust your stock records accordingly.
Be sure to:
- Count the stock
- Establish where the stock should be
- Establish the weight of the stock
- Establish the logistics of moving the stock
- how far does the stock have to move?
- how many people will it take?
- will you need to use vehicles?
- how much will moving stock cost?
- consider work health and safety requirements
- Clear the area into which you are moving stock
- Transport all stock safely and securely.
Adjusting stock records
Once you have relocated the stock, it is essential to adjust your stock records and inform all relevant staff members of the stock’s new location. You also must specify whether this new location is to be a temporary or permanent home for the stock in question.