How Do You Actually Track Stock?

January 23, 2025

Inventories are the cornerstone of a successful business, so you can optimize stock levels, fulfill customer needs and manage expenses. Inventory accuracy isn’t just about keeping track of how much inventory businesses hold; it’s about eliminating waste, theft and keeping things running smoothly. But how should inventory be counted?

We’ll explore the types of inventory counting strategies in this blog post, along with their pros and cons, and how advanced inventory management software such as Britecheck can radically transform inventory counting.

Why Accurate Inventory Counting Matters

Before we jump into the methods, let’s set the context why inventory counts are so important:

• Customer Satisfaction
  Stockouts cost lost sales, and overstocking limits both capital and floor space. Inventory accuracy is what ensures customers receive the right product when they need it.

• Cost Control
  Overstocking, spoilage, or shrinkage of inventory can push up prices.

• Compliance
  For audit-risk businesses, inventory accuracy is critical for regulatory compliance and reporting.

• Operational Efficiency
  Knowing the real-time stock counts simplifies reordering, warehouses, and labour allocation.

Methods of Inventory Counting

Periodic Inventory Counting

What is it?
Periodic inventory involves rearranging stock on a weekly, monthly, quarterly or annual basis.

Pros:

• Easy to use for small businesses.
• Affordable for businesses with low inventory volatility.

Cons:

• Expensive and time-consuming for large amounts of stock.
• Greater likelihood of error due to inconsistency between counts.

Good for a small business with minimal inventory requirements.

Perpetual Inventory System

What is it?
This is a technology-based process where inventories are updated as the status changes. Every sale or purchase is automatically recorded in the system.

Pros:

• Real-time accuracy.
• Eliminates physical assessments.
• Works seamlessly with POS systems and the internet.

Cons:

• Setup takes a long time.
• Constant data entry and system administration.

Designed for companies that have a high turnover of inventory or who work with powerful inventory management tools such as Britecheck.

Cycle Counting

What is it?
Cycle counting counts a portion of inventory continuously rather than the entire stock at once.

Pros:

• Less disruptive to normal business.
• Makes more frequent counts better in the long run.
• Targets high-demand or coveted commodities.

Cons:

• Needs an extensive schedule management system.
• Can still miss differences in often unrecognised zones.

It is ideally suited for mid- to large-sized businesses with multiple product lines.

Barcode Scanning

What is it?
Scan inventory barcodes with handheld or stand-alone scanners, automatically updating the system.

Pros:

• It speeds up counting.
• Reduces human error.
• Integrates with inventory software.

Cons:

• You will need to invest in hardware and software.
• Does not apply to barcodes.

Ideal for businesses that process lots of inventory.

RFID (Radio Frequency Identification)

What is it?
RFID tags can be tied to inventory items and read wirelessly with RFID readers to simplify the counting process.

Pros:

• Extremely fast and accurate.
• Detects items in real time, without using the line-of-sight feature.
• Designed for large warehouses or stores.

Cons:

• Extremely expensive tags and readers up front.
• Needs competent employees to set up and operate.

Perfect for massive installations or businesses with expensive products.

Manual Counting

What is it?
Inventories are manually tallied by staff without technological assistance.

Pros:

• No upfront technology cost.
• Provides real world insight into inventory.

Cons:

• Time consuming and subject to human error.
• Time-consuming and disruptive to daily business operations.

This is best suited for extremely small companies with a small inventory.

What is the Best Inventory Counting Approach?

The best way to count inventory depends on several factors:

• Business Size and Scale
  Small companies can cope with occasional counting or hand labor, but bigger corporations require automation.

• Type of Inventory
  Goods of high value or perishing nature may need frequent and precise tracking.

• Budget
  High-tech solutions such as RFID or perpetual inventory require considerable capital investment but result in efficiency savings in the long term.

• Staff Expertise
  Take into account the technical background of your team. Devices such as barcode scanners or RFID may require training.

• Operational Impact
  Approaches such as manual or intermittent counting may interrupt daily routines, while automation might go undetected.

Technology and the Future of Modern Inventories

Technology has made the management of inventory faster, more precise and less labor-intensive. How Britecheck-based inventory solutions like these can optimize your operations:

• Real-Time Tracking
  Britecheck offers 24/7 stock visibility, so you get stock information live every time you make a purchase. This minimizes stockouts and overstocking.

• Mobile Accessibility
  Britecheck Mobile App lets you count inventory from your phone or tablet without expensive hardware.

• Barcode and QR Code Integration
  By supporting barcode and QR code scanning, Britecheck eliminates the chance of human errors and makes counting quicker.

• Cloud-Based System
  Britecheck stores inventory data in the cloud, so teams can view real-time reports anytime, anywhere.

• Customizable Reporting
  Create custom inventory reports that suit your business so you can take better decisions.

Tips for Effective Inventory

Counting No matter how you count your inventory, here are some best practices that can improve your counting efficiency:

• Standardize Procedures
  Make sure your team follows a consistent counting process so that there are no surprises.

• Train Staff
  Getting them trained correctly will reduce mistakes and improve efficiency.

• Use Inventory Management Software
  Apps such as Britecheck make counting simple and offer real-time insights.

• Schedule Regular Counts
  Even with automation, periodic physical inspections can be used to check system reliability.

• Focus on High-Value Items
  Be extra careful of items that are frequently sold or valuable in order to minimise losses.

• Leverage Technology
  Use barcode scanners or RFID tags for faster, more accurate counts.

Stock Counting Mistakes to Avoid!

• Skipping Reconciliation
  Never rely on physical numbers as a baseline for system data without checking for differences.

• Neglecting Training
  It is easy for untrained personnel to make costly errors when counts are made.

• Ignoring Technology
  If you don’t use advanced technologies, you’re going to be a competitive underdog.

• Underestimating Shrinkage
  Shrinkage is a consequence of theft, damage or human oversight.

• Overcomplicating Processes
  Easy, uncomplicated processes are more effective than cumbersome systems.

Summary - How Do You Actually Count Stock?

The correct inventory counting method varies based on your company size, industry, and operational requirements. For small businesses, manual and periodic counting might be enough, but the bigger companies would definitely benefit from an automated tool such as Britecheck.

Using the technology not only increases accuracy but also saves time and money, allowing businesses to invest in expansion. Britecheck’s intuitive, cloud-based inventory management software will have you counting inventory more quickly, accurately, and with fewer distractions.

Do you want to automate your inventory control? Check out Britecheck.com to learn more about how we can help you manage your inventory process. The contents of this blog post give an overview of the inventory counting strategies that businesses can choose based on their needs. If you still have any questions or requests to customize, please contact Britecheck’s team!