Have you ever wondered where your stock disappears? You're not alone. Many retailers do not know. Yet, understanding stock shrinkage and damage rate is crucial for retailers. Let's dive into these KPIs. It will only take a few minutes to find out. Then maybe it can transform your business.

Shrinkage and Damage

Imagine this: You've just finished a stocktake, but the numbers did not add up. Sound familiar? That is shrinkage. And those damaged gifts at the back of the shop now? That's damage eating into your profits.

Quick Definitions:

• Shrinkage: Stock that's gone missing
• Damage: Stock that's no longer sellable without discounting

Crunching the Numbers

Let's get our hands dirty with some calculations. A full and detailed explanation is available here.  After a stocktake, working through the calculations should take a few minutes.

Some real-world case studies

Case Study 1: The Vanishing Vitamins

A pharmacy in Brisbane was losing $5,000 worth of vitamins each month. After calculating their shrinkage (2.5%), they discovered employee theft was the culprit. By implementing stricter controls, they reduced shrinkage to 0.8%.

Case Study 2: A newsagent in Sydney

They found that their margins on stationery were, in theory, about 50%. Yet they found that their margin was more like 32%. This is due to the theft rate. They rearranged many of the stationery and put it behind the counter, which boosted their profits dramatically.

Industry Benchmarks

I can give you some typical figures quoted, but almost everyone I ask tells me that these figures are educated guesses. Most quote a figure of 1% to 2% and then give a disclaimer to say they believe it is too much higher. Figures typically quoted are 1.5% shrinkage with a damage rate of 0.4%; here are some details. How do your numbers compare? If they're higher, panic!

What we do know is that since COVID, shoplifting rates have jumped. You can read about it here in every state; we are looking now at about a 20% to 40% increase. This is a worldwide trend; for example, in the UK, it was a 37% increase. 

Yesterday figures from the Victorian Crime Statistics were released for the year ending March 2024 here there is a concerning 17% increase in theft offences recorded for the period to March 2024, driven by the highest ever numbers of incidents from retail stores. They I think confirm an early report that shoplifting is at highest level ever here. I am sure the oother states will becoming out soon with similar figures. Shoplifting since COVID has been a disaster.

The Why Behind the Numbers

Shrinkage causes:

1. Sticky-fingered shoppers (shoplifting): One pet shop told me that the small items for the pets too often disappear.
2. Employees with light hands (internal theft): Lott is often a big problem here. An employee gets the sudden urge to grab and rub a scratchie, and it loses, so they put it down. 
3. Paperwork nightmares (administrative errors) - Often, lousy data entry has errors.
4. Dodgy dealings (supplier fraud) - I suspect this is all too common in newsagencies. I find it hard to believe that these errors we pick up are entirely accidents.

Damage Demons:

1. Clumsy handling 
2. Storage snafus
3. Time's Cruel March (expired products)
4. Rough rides (transport damage)
5. Sun causes the item to fade over time.

Ideas for Prevention

1. Regular Stock Audits: Don't wait for year-end surprises. Implement cycle counting to catch issues early.
2. Set SMART Goals: Use your percentages to set Specific, Measurable, Achievable, Relevant, and Time-bound targets. I discussed how to do them here yesterday. 
3. Train Your Team: Get your staff involved.
4. Upgrade Your Tech: A modern POS software and a camera system can be your best ally in the fight against shrinkage and damage.
5. Secure Your Space: Precious items should be behind the counter or under lock.

POS Systems: Your Secret Weapon

A robust Point of Sale system isn't just a glorified cash register. It's your 24/7 stock guardian. Here's how:

• Real-time Tracking: Know your stock levels at a glance
• Automated Alerts: Get notified of suspicious patterns
• Easy Auditing: Simplify your stocktakes
• Data Insights: Spot trends and make smarter decisions

From Numbers to Action: Implementing Change

1. Set Your Baseline: Calculate your current shrinkage and damage percentages.
2. Benchmark: Compare your figures to industry standards.
3. Identify Hotspots: Which products or areas are most affected?
4. Strategise: Develop targeted prevention strategies.
5. Monitor: Regularly check your percentages to track progress.
6. Adjust: Refine your changes based on results.

Loss Prevention Strategies That Work

1. The Power of Light: Well-lit shops deter thieves and reduce accidents.
2. Look for dead areas: Design your stock layout to minimise blind spots. Have cameras and mirrors there.
3. Inventory Management Software: Use technology to track stock movements accurately.
4. Get your employees involved: Often, they can pick up suspicious people. 
5. Customer Service Focus: Attentive staff naturally deter shoplifting.
6. Grandmother: This idea works. Have the grandmother at the front of the shop personally welcome everyone into the shop. 

The Bottom Line Boost

Reducing shrinkage and damage isn't just about preventing losses but unlocking profits. Here's the impact:

• Increased Revenue: Every item saved is an item sold.
• Better Cash Flow: Less money tied up in replacement stock.
• Enhanced Customer Experience: Your POS system will know the stock that you have.
• Improved Forecasting: Accurate stock levels lead to smarter buying decisions.

Your Next Steps

1. Calculate your current shrinkage and damage percentages.
2. Set realistic targets for improvement.
3. Implement at least one new prevention strategy this month.
4. Use your POS system to automate tracking.
5. Schedule reviews on loss prevention.

Remember, every small improvement adds up. A 1% reduction in shrinkage on a million dollar turnover business, at 30% margin is about $10,000 profit to you.

By tackling shrinkage and damage head-on, you're not just protecting your stock – you're safeguarding your success. It's time to turn those missing items and damaged goods into profit on your bottom line.

Now, at the end of the financial year, we are releasing this video, which provides a complete YouTube tutorial on how to do the physical count for a stocktake using our POS Software.

We walk you through this essential inventory management system and explain the options and best practices.  This video would be useful as a training and reference resource for anyone who needs to perform stock control using POSBrowser. 

It covers the two main approaches—doing the full shop at once or breaking it down into smaller location-based sections. Although both work, we advocate the location-based approach, which we find more efficient. Prepare your plan by dividing the shop into sections. Then, stocktake each section one at a time. This makes the process more manageable and accurate. 

The video demonstrates creating a new stocktake, correctly scanning/counting items, and correctly recording it. We also cover the necessary settings like "Check Stock Movement" if you are doing it during trading. It shows how to run reports to see discrepancies, cost valuations by department, and more. The reporting capabilities highlighted allow you to analyze and audit your stock position.

The clear explanations and visual demonstrations make it a valuable reference for new and experienced users. I suggest getting your staff to run through it, too.

"The integration between stocktake data and our ordering process has streamlined our operations significantly. We've reduced carrying costs, minimized stock-outs and given us accurate reporting." 

Mastering stocktakes is essential for the success for any retailer.

This question arises every year and again this year. Here, I will discuss the importance of stocktaking for businesses and address common objections. 

We also explore the advantages of performing a stocktake, even when facing challenging circumstances. Additionally, we highlight the potential risks of skipping a formal stocktake and how implementing regular rolling stocktakes throughout the year may offer better results.

Firstly, stocktaking is a critical process for retailers, ensuring accurate management of inventory levels. Despite perceived challenges, I think its benefits far outweigh the drawbacks. Modern POS software can streamline the stocktaking process. It's not just for the ATO; I have seen many retailers whose profits have mysteriously disappeared. We are not talking small figures here. Theft, damage, or errors of the inventory mean a significant time loss to the retailers, which also implies a substantial loss of revenue due to the problems of the businesses. You can substantially decrease the losses and increase the revenue by carefully regulating your inventory.

Objections to Stocktaking:

Stocktaking can be viewed as a tedious and resource-intensive task, with several arguments against its necessity:

It consumes time and effort
It incurs additional costs without generating revenue
Disruptions to daily operations can negatively impact sales

These concerns are legitimate; however, there are compelling reasons to perform a stocktake despite them.

Legal Requirements for Stocktaking:

According to the Australian Taxation Office (ATO), businesses must perform a stocktake if they cannot accurately estimate their current stock levels based on historical data and do not meet specific conditions. These conditions include:

The difference in stock values between the previous financial year and the current financial year is less than $5,000

Using a reliable method, you can reasonably estimate your current stock levels and maintain sufficient evidence to substantiate your estimates.

Please read this page from the ATO here on this question and pay particular attention to the square I marked in red. 

I am sure every client I have has at least a $5,000 inventory difference between this fiscal year and the previous one. 

It is your responsibility to affirm your stock figures to the ATO, at least to their complete satisfaction, so that the ATO will regard your figures as reliable evidence.

Rolling Stocktakes vs Formal Stocktakes:

There's debate over whether to conduct traditional annual stocktakes or opt for rolling stocktakes throughout the year. While rolling stocktakes offer real-time insights, they can be more resource-intensive than formal stocktakes. Both methods have their merits, but accuracy in stock valuation remains paramount for tax purposes.

Advantages of Performing a Stocktake:

A well-executed stocktake offers numerous benefits for businesses, including:

By comparing the inventory on record with the actual stock, one can obtain the data needed to make better stock orders, properly manage inventory, and prevent loss at the premises in cases of theft or things are just out of place. This information can then be used to devise better security measures.

Products are checked to see how many are near expiry and if stock is spoilt and damaged. Often, this allows last-minute sales to recover whatever value is left in these goods.

Getting technology that provides 24/7 visibility of the inventory status and the capability to view, track, and control the flow of goods in and out of the business will ultimately increase operational efficiency, accuracy, and, more importantly, customer satisfaction.
 

POS Software Benefits:

Our POS software comes equipped with robust inventory management features to simplify stocktaking:

• Barcode scanning: Scan product barcodes for faster and more accurate counting.
• Real-time inventory updates: You do not need to close the shop to do a stocktake.
• Stocktake reports: It generates detailed reports to analyze discrepancies and identify trends.

Conclusion:

With their circumstances, different businesses ought to decide whether to implement a formal or rolling stocktake. The legal aspects and benefits, which must be balanced with each approach, should form the basis for a decision. By taking these necessary steps, you can make wiser decisions. 

Whichever way you go, I wish you all the best for your business.
 

Somehow, I doubt anyone in the world has been as involved in stocktakes as I have. Stocktaking is one of the best practices and a crucial process for any business in 2024. It involves physically counting your inventory to ensure your records match what you have on hand. This can be daunting, but it is the best way to control inventory. It is also your way of testing your inventory management system. For example, Excess Inventory, *Eating Away* at your profits in 2024, and checking your inventory data.

Why Inventory Management Matters

In today's dynamic market, real-time inventory visibility is essential for success.

Current studies are showing "found that inventory record inaccuracies are a significant problem, affecting approximately 60% of stock  analysed. Interestingly both positive and negative inaccuracies had a detrimental effects on sales and correcting these inaccuracies led to a 4-8% increase in sales" 

Effective inventory management allows you to:

Stock management

Regular stocktaking helps you identify excess inventory and your inventory tracking and assess your current inventory control. For example, people often find "dead stock" just sitting there and holding their cash flow.

Improve Inventory Accuracy

Accurate inventory levels are the foundation for informed decision-making. Regular stocktaking ensures you have the right stock to meet customer demand.

Accounting requirements

A properly conducted stocktake is the best way to prove and justify your stock holding to the ATO. Estimates are always dubious to an auditor, and if the auditor feels that you do not have good inventory management techniques and stock keeping, they can make and use their estimates. I have seen this problem happen with clients that have used cyclic stocktakes.  I have discussed this issue here.

Tips to get your stocktaking procedure going in 2024 going.

Preparation is Key

Thorough preparation is critical to a successful stocktake. Schedule your stocktake for a quiet time, organise your shop as much as you can before, and consider what people are best for getting faster and more accurate counting. Remember as well that:

-Stock counting tends to work faster if people are in teams, so consider dividing people into teams of two or three people; I find that two people to count and one to record the count makes an effective team.

-A stocktake is an excellent opportunity to check pricing, barcode, and product labels while counting.

-It is also an excellent opportunity to clean the shop.

-Plan how to split the task into blocks to keep your staff motivated and alert. We recommend that you divide your shop into manageable counting areas. Label each section clearly. You should aim for each area to be something that can be done in one to two hours max. This makes it easier to have regular breaks

-If you have a warehouse, make sure it is not missed. Often, it can be done on another day.

-Move stock as much as possible to the appropriate counting area. You want stocktake day to be as simple and fast as possible.

-You can take a few days as a stocktake can be done in more than one day.

-Sometimes, you cannot count but will have to use estimates.

Check your Technology

Modern inventory management software has revolutionised the stocktaking process. Our POS system integrates with stocktaking software, automates tasks, and streamlines the entire process, but make sure the setup you intend to use works. I have seen how frustrating it is for people to assemble their teams, start the stocktake, go to record stock levels, and discover something isn't working. Make sure your stocktaking software and equipment work now! 

Test your equipment and verify it works. Confirm that the chargers and batteries are all fully operational and ready for use. It is also an ideal opportunity to familiarise yourself again with their operation.

If you can use laptops or, better still, PDTs, both will be real-time savers as these can move around the shop rather than going to the items to count. If you have a laptop, ensure it works with our POS Software.

Review how stocktakes work.

Develop a Systematic Counting Procedure

Establish a clear and consistent method for counting your inventory. This could involve counting by sections or categories to ensure no stock is missed or double-counted. In Australia, it is generally considered easier to count from left to right—bottom to top. Make this a rule before you start, and make sure everyone knows this in advance.

-As you count, prepare place markers to mark counted areas to avoid missing or double-counting sections.

Common stock issues

These problems you need to address before you start the stocktake:

-Have a problem holding area where problem items that appear while doing a stocktake can be moved too, allowing you to move on in the stocktake and not be held up. You are trying to streamline the process.

-Move as many problem items into this holding area as possible before you begin.

-Review the types of inventory you have. For example, put all laybys, consignment items, or items waiting for dispatch in separate holding areas. Later, you must check with your accountant about how they want these items handled.

Conclusion

These tips will help you make a successful stocktake. If I missed something, please let me know.

We are reviewing our complete stocktaking guide, so give us a few days to review it. We will also release some other guides on specialised issues in stocktaking. These guides will equip you with the latest knowledge to improve your bottom line.

Happy stocktaking!

You might wonder if running a stocktake sale now is worth it. After all, you’ve just finished counting your stock and are busy preparing the documentation for the financial year. But before you put away your inventory sheets and relax, consider the benefits of making a stocktake sale now.

A stocktake sale is a promotional sale commonly used to clear out excess or outdated inventory now by retailers.

Here are some reasons why you should make a stocktake sale now:

>Advertisers are getting pushing stocktake sales. People are primed to buy old items cheaply. Customers now are more likely to shop for bargains and deals. You can use this opportunity to capture their attention and interest with your stocktake sale.

>You have counted your stock. You would certainly have found stock items that should be cleared out. A stocktake sale is a great way to get rid of such products.

> You can make room for new inventory.

>A stocktake sale increases your sales, cash flow and improves your inventory management. 

Tips

>A good stocktake sale should be short and limited to create a sense of urgency among customers. Limiting the duration and availability of your stocktake sale can make it more appealing and exclusive to customers. Your regular customers will be suspicious if they go on too long.

>Promotion is cheap and easy to do. All you need is a sign on the window and on a stand with the goods in your shop. You don’t need to spend much money or time promoting your stocktake sale. Use simple and effective methods. If you have a social media account for your business you can use it free to spread the word.

Conclusion

Making a stocktake sale is great to clear old stock, boost sales, and promote your business.

Now most of you have done a stocktake, why not use your POS Software stocktake reports to analyse the discrepancies in your stock figures?

Effective inventory management is crucial for the success of a retail business. Nevertheless, it can be challenging to monitor. A mistake made now often will not be noticed till next year.

Starting off

>Go to your stocktake section

>You will find reports showing the discrepancies (variances) in the stocktake.

>Highlight the discrepancies that have occurred.

These discrepancies will be due to many reasons, and to determine the cause, you need to know what is missing.

Some of the most common sources of discrepancies in retail stock inventory are:

Staff Theft

Retail studies almost always put it as number one. Please make no mistake. It is a severe problem. It appears motivated by various factors, such as dissatisfaction, revenge, financial need, or greed. For whatever reason, once an employee starts, they continue it. 

- Stealing products: Employees might steal products from the store.

- Mate rates: Employees might not ring up goods that a friend or family member wishes to take from the store or falsely give their store discount to them.

Human error

Human error is another common source of inventory discrepancies. It can occur at any stage of the inventory process, from receiving goods, picking orders, entering them into the cash register and doing the stocktake. For example, in stocktakes, a person might accidentally count an item twice. 

To prevent human error, you should implement robust inventory control procedures. 

Inventory shrinkage

Stock theft, damage, and fraud by customers are all too common today. 

Supplier errors and fraud

Supplier errors and fraud are another great source of inventory discrepancies that occur. It is all too common today for a supplier to deliver fewer products than what they invoiced. One of my clients just brought 3 lots of 100 gift sheets. The first lot had about 90, the next was about 87, and the last was about 95. The supplier stated that the lots were only approx, but why were they all under if so?

You should carefully review all incoming shipments and invoices to prevent supplier errors and fraud. They should verify that the products delivered match the purchase orders and invoices. You should conduct regular audits and reviews of supplier performance and contracts. One of the reports above is the stock discrepancies by suppliers. Supplier errors are a big problem with my clients. Some have told me the total cost of their point of sale system paid for itself by this saving alone.

Mismanaged returns

Mismanaged returns involve handling returned products without proper inspection, verification, or documentation. Retailers should have a clear and consistent return policy to manage returns effectively. You should inspect and verify the returned products for quantity. You should update the inventory system accordingly after processing a return. A good way of reviewing these figures now is to look for discrepancies by department.

Conclusion

You can find many problems in your stock control for less than an hour of work. These discrepancies are common in retail businesses but can be avoided or minimised by implementing effective inventory management practices. By identifying and addressing the most common sources of differences, retailers can improve their operational efficiency, customer satisfaction, and profitability.

Before you begin using our POS Software for this year’s stocktake, I recommend reviewing the guidelines for conducting a stocktake. This webinar will help you familiarize yourself with the features and functions of our software and help ensure that you can perform the stocktake accurately and efficiently.

You can access the latest detailed help document within the POS Software if you need further assistance or clarification. Click the Help button on the software Welcome page. Then, navigate to the Stocktake section, where you will find step-by-step instructions and tips on how to use the software for your inventory management.

It's that time of year again! Stocktake is an essential task that helps businesses maintain accurate records and identify errors in inventory management. However, it can also be a challenging and time-consuming task that requires careful planning and execution.

ATO requirements are listed here:

But it is not just useful for the ATO and taxation. It also is invaluable to determine your shrinkage rate.

Here are some tips for conducting a successful stocktake

Test and review your equipment

- Test your equipment and verify it works. Confirm, if applicable, that the chargers and batteries are all fully operational. That they are all ready for use.

- This is an ideal opportunity to familiarise yourself again with their operation.

- If you can use laptops or, better still PDTs. Both will be a real-time savers as these can move around the shop rather than going to the items to count. If you have a laptop, ensure it works with our POS Software.

Review the steps required.

- Run over the steps required the update the help documents in PosBrowser's help files as now available.

Press F1 while in the register, now look at these four documents:

Stocktake = Standard stocktake doc using Posbrowser on its own to run the stock take.

Stocktake with a PTD = Stocktaking with the help of a PDT

Stocktake with the stock management system = Stocktaking using the mobile PDA browser program.

3rd Party Stocktake guide = A guide on how to upload stocktake data to and from another program.

Read the help files on how to do a stocktake with PosBrowser using different methods and tools to select the best plan for you.

-Now, give it a go on a handful of products in the training system. This is so you can get used to the process. It has been a year since we did it, and people forget.

Prepare your stocktake

-Schedule a quiet time for the stocktake. The fewer customers and distractions, the better, so you can focus more on the stocktake

-Make sure you give yourself enough time. 

-Move problem items to a separate holding area.

-Divide your shop into manageable counting areas. Label each section clearly. You should aim for each area to be something that can be done in one and a half hours max. 

-Move stock as much as possible to the appropriate counting area. You want stocktake day to be as simple as possible.

-Put all laybys, consignment items, or items waiting for dispatch in separate holding areas. Check with your accountant how they want these items handled.

-Roster enough people. Consider dividing people into teams of two or three people, one or two people to count and one to record the count. 

Doing the stocktake

-Back up your data before and during the stocktake to avoid losing your work; I recommend doing backup throughout the day. No one has ever gotten into trouble by taking too many backups.

-Count to a system. In Australia, it is considered easier to count from left to right—bottom to top. Note sometimes you cannot count but have to use estimates.

-As you count, use place markers to avoid missing or double counting sections.

-It is an excellent opportunity to check pricing, barcode, and product description while counting.

-It is also an excellent opportunity to clean

-Keep a sheet of notes to add anything that needs clarification. Then move on. You do not want to be held up.

-Take regular breaks and split the task into blocks to keep your staff motivated and alert.

-If you run out of time, do not worry; the stocktake can be done in more than one day.

Conclusion

These tips will help you make a successful stocktake. If I missed something, please let me know.

Happy stocktaking!

With Our Advanced Systems, you Take Control of Your Inventory.

Introduction

In the retail industry, your inventory management system is a crucial component that can make or break your company's success. You can ensure that you have a more significant number of valuable products on hand. They are manageable if you have an advanced inventory control system like ours in place. Businesses can improve accuracy, increase profits, and streamline inventory management procedures by utilising POS software.

By the time you get to the end of this article, you will have a clear understanding of how our point-of-sale software can help you. So, improve your retail business. Take your inventory management to the next level.

How POS Software Can Aid in Inventory Control

An explanation of how POS software can improve inventory accuracy

Well, you get inventory control. You can track inventory levels in real time using POS systems that integrate with barcode scanners and other devices, ensuring they always have an accurate picture of what's in stock. Overstocking and stockouts, which result in lost sales and dissatisfied customers, can be avoided.

Managing your inventory is streamlined by POS software.

As well as increasing inventory accuracy, POS software can simplify inventory management processes. POS software allows you to manage stock, reorder products, and track inventory levels. With this, you can help you concentrate on other aspects of your business while reducing errors and saving time.

Real-time inventory levels

You can access inventory data at any time and location with POS software to make better decisions about your operations. You can be better prepared for the future and anticipate possible stockouts. You can work more efficiently due to this. 

Costs associated with poor inventory management

Less revenue is generated, and more is lost due to stockouts. Stockouts often result from poor inventory management.

Inventory management can lead to increased labour costs, as employees spend more time managing the merchandise and less on other tasks.

Customers who aren't happy

Poor inventory management can also result in customers who aren't happy. When they can locate the required products, customers may become frustrated. They might not come to you the next time, so they might go to the shop with what they know has what they need.

Obsolete stock

Overstocking can also be a problem. What happens here is that you are accumulating unsellable inventory. This clogs up valuable resources and costs money.

Cash Flow

Improper inventory management hurts cash flow because it ties up funds which are often financed through debt.

Beginning inventory tracking

Requirements for hardware and software

To begin using POS software for inventory control, you must get the required hardware and software. Barcode scanners and a POS system are part of this.

Training

After installing the hardware and software, you will need to use the system correctly. Training on data access, sales processing, and inventory tracking are part of this.

The significance of a stocktake

A stocktake is a procedure of counting and confirming the number of items in stock. Regular stocktakes are needed to guarantee that the inventory records are accurate and current. There is no other way to get accurate numbers. It is easier as our software includes built-in stocktake functionality, making stocktaking faster and more effective.

You can identify discrepancies in inventory levels. Then make necessary adjustments with regular stocktakes. Improved productivity, accurate inventory records, and prevention of stockouts and overstocking are possible.

Take Control of Your Inventory

You can manage products, prices, and inventory with the Ordering New Stock feature. You get control over your stock. You'll be able to quickly and effectively add new products to your store. Also, set prices with this feature. This ensures that your inventory is always accurate. By staying on top of your inventory levels, you can reduce the likelihood of stockouts and overstock. This allows you to make better business decisions and increase efficiency as you can manage your inventory efficiently. This feature helps you better control and manage your stock.

Advanced Inventory Reporting

With POS software, you can now access advanced inventory reporting features. This provides in-depth data on sales, inventory levels, and other KPIs.

Sales by Vendors

After that, you can keep track of your suppliers' sales using advanced inventory reporting. It is too familiar today for retailers to understand less what sells in their shop than their suppliers do. Many bad decisions can result from this. Using our advanced inventory reporting, you can make more informed purchasing decisions now if you know more.

Inventory by Category

You can get in-depth information category. You can use this to determine which products are selling well and which aren't. Businesses can use this information to decide which products to keep on hand and which to drop.

Conclusion

Controlling inventory using POS software can significantly benefit your retail business. It can provide real-time visibility into inventory levels, streamline inventory management procedures, and enhance inventory accuracy. It can help you make better business decisions and increase overall efficiency by offering features like tracking sales by supplier or category and ordering new stock directly from the inventory system. A solid inventory management system can prevent stockouts, overstocking, and lost sales, resulting in increased profits and customer satisfaction. You can control your inventory and take your retail business to the next level by investing in the necessary software, hardware, and training.

Your company's success will be supported by good inventory management.

Call to action

Please use a cutting-edge inventory management system like ours to ensure you always have enough of the right products. Our point-of-sale (POS) software can assist you in gaining control of your inventory and taking your retail business to the next level by streamlining processes for inventory management, increasing accuracy, and increasing profits. For more information about our system and to set up a demonstration, get in touch with us right away. Don't delay; Now is the time to take charge of your inventory and begin reaping the rewards of better inventory management.

Extra questions

Q: Can my retail inventory be connected to eCommerce?

A: You can connect your retail inventory to eCommerce, yes. You can link your physical stock with your online store with the built-in integration capabilities of our inventory management software. This assists you in monitoring stock levels across all channels and ensuring that your online store always has up-to-date inventory information without using another system.

Q: Can you help me predict future sales? 

 A: Of course! Our system helps you forecast sales using your historical sales and stock levels over time. This it uses to estimate future sales of your products. This is a great way to plan for your future needs.

Q: Is it possible to keep track of information like inventory levels and serial numbers?

A: Yes, you can track data like inventory levels and serial numbers with many inventory management systems. Businesses that sell high-value items or products subject to warranty or recall can benefit most from this. By keeping track of serial numbers, you can quickly determine which items are in your inventory and where they are. This can help you track and manage your inventory more effectively. It also helps you manage warranty claims or recalls better.

 Q: How does it help me to arrange my products better?

A: Our system easily controls and tracks your inventory by allowing you to develop and organise products into different categories easily. This way, you can quickly find and control products. By monitoring inventory by type, you can also see which products are selling well and which aren't. This allows you to make better decisions about items to keep and dump.

Q: Does it help with product classification?

A: It allows you to organise products in many methods, typically by department, category, or supplier, so you can easily scrutinise your sales and inventory levels by these methods. This aids you in making better purchasing decisions. Then our advanced inventory reporting feature gives you detailed information on sales by these methods, so you can see which products are going well and which aren't. 

Now you have reviewed your stock in your stocktake, why not put some aside to make a stocktaking sale. Other retailers now are doing that; why not you? If it works for them, why not you?

Now you can supplement these items with this fantastic report.

In the register reports > stock titled "Old Stock on hand by Date last received"

This will give you a listing of your old stock. 

The old stock did not do you much good. If it is old it is probably depreciating at about 30% a year, so after three years, it has just been written off. Of course the insurance, rental on the property, staff costs, etc. to keep it are not written off.

Was it better to count these old stock, than move it?

There is no excuse not to have a stocktaking sale to get rid of old stock now it's the annual season to do so.

This weekend or next is when most stocktakes will be done, so here are some last-minute tips to help you have a smooth and successful stocktake.

1) Set up a problem area where items that have issues, e.g. damaged goods, can be determined later. The idea is to move on as much as possible.
2) When you come across items where the label is missing, or you cannot scan the barcode, move it to the problem area where it can identify and labelled correctly later. These items will need to be counted at the end of the stocktake as a separate count batch.
3) Carry out the count of a department in one hit if you can.
4) Teams work faster than individuals. One team of two people is better than two individuals, I find three is the ideal counting team.
5) Make a formal decision on how you will count. You will have fewer problems if you count from bottom to top, left to right.
6) Have place markers to mark what has been counted. It is easy to miss a section or accidentally count the same area twice.
7) While counting, check the pricing too?
8) You can clean too while items are being removed and counted.
9) Check that the items match the barcode, product description and quantity. Do not assume that the label is correct.
10) Do backup frequently. If something goes wrong, you may not lose all your work.
11) Have a backup at the end. We have had people enter everything in everything, then someone, not knowing what to do, pressed the wrong button and wiped the figures. This stocktake had to be redone.
12) If possible, count everything but be aware that sometimes you will need to estimate. Once, I counted a pile of underwear. I got 50, my co-worker said 55, so we wrote down 52.

Happy stocktaking

I suggest that before you start this year's software you go through for instructions on running a stocktake.

This video will take you through the stocktake procedures in PosBrowser.

There is also a help document available in the software. On the Welcome page hit the Help button and open the Stocktake section.

Counting your stock is a significant task, but there is no alternative. To help make this task easier on you, we've compiled some steps about doing a stocktake.

1) A stocktake is not hard, but it can be mucked up if you are not careful. Take frequent backups while doing it. We can often fix many errors if we have these backups.

2 ) Schedule a quiet time. You do not need to halt retailer operations, but the fewer distractions, the better.

Doing a stocktake with customers asking questions and doing orders are very distracting. So try to discover a time that works for you and your workers that won't hurt your bottom line and reduce distractions.

3 ) Run over the steps required the update the help documents in posBrowser's help files as now available

Press F1 while in the register and check them out to get them.

There are four documents:

Stocktake = Standard stocktake doc using Posbrowser on its own to run the stock take.

Stocktake with a PTD = Stocktaking with the help of a PDT

Stocktake with the stock management system = Stocktaking using the mobile PDA browser program.

3rd Party Stocktake guide = A guide on how to upload stocktake data to and from another program.

4) Do a trial run first on a small, well-organised department to get a feel of how it works. You need to know what you are doing. If you need help, give us a call. It is not the time to learn how to do it when you have staff sitting uselessly while you are learning what to do. If possible, get an experienced staff member involved.

5) Make sure all the computers, PDTs and scanners you intend to use are in place and working. Now is an excellent time to test them. Make sure that portable units are charged. Familiarise yourself with how your equipment works.

A PDT is great as it can be moved around and probably save you one person in the team.

With a computer, each unit of stocktakes ought to be in teams of two-plus. People counting calling out the amount, and other records. I like laptops as they are easy to move around the shop.

6) Then take a walk around the shop, familiarising yourself with everything. In my experience, a well prepared and tidy shop will speed up your stocktake and make it much easier to do. Make sure the shelf labels are correct. That your stock is in the right area (especially look at the spots under counters in case something is hiding there). Review any problem items, e.g. damaged goods. You want the stock in its correct place in a logical order.

7) Put any laybys together.

8) If you have items on consignment, mark them.

9) Make holding areas where problem items discovered during the stocktake will be temporarily stored. Move the problem items into it now. Move any items waiting for dispatch or picked up in another holding area.

10) What works best is to divide your shop departments into discrete, measurable counting areas. You want each area to be a few hours of work.

Anyone that has been through a stocktake knows how draining it can be. Splitting the task into a few hours blocks ensures that your stocktakes get regular breaks. It also means that it is easy to do the stocktake over a few days. As it is at any one time only a small part of the shop is affected. This makes it easier not to shut down the shop and so turn away customers.

11) It saves time if you get a listing of the expected stock in each area out of your computer. While the person is counting, they know what to expect. It also allows instant reviews as you can say "You sure mate, it is only four? According to the computer, there is another one there." Many do not like this as they do not want their staff to know their existing system's errors; it is your call.

12) Give each counting area a label and write down on a piece of paper every area, then as each area is counted, mark it off. That way, you do not miss spots.

13 ) Finally, observe what worked and didn't work during this stocktake to make enhancements for your next Stocktaking.

To help you, we will be running a webinar on stocktakes.

For most of us, the End of the Financial Year (EOFY) is on the 30 June. For most businesses, it is a significant time. The immediate problem is super which has to be in by the 28 July. Then what we need to do is prepare by 31 October. If you do not use an accountant, you must lodge to the ATO by then but you often get some more time often with an accountant.

Here are some tips for now:

1) Make an EOFY sale. Get rid of as much stock as you can. Useless stock, if kept, generally goes into the stock figure at a wholesale value. That will increase your profit.

2) Review your debtors and creditors. Be careful here as if debts that need to be written off are not written off, it increases your profit. If creditors are written off, it increases your profits. As such most people write off the debtor now and the next financial year the creditor.

3) Review your records; are they up to scratch? If it is not, you can have with the ATO a real problem. I have seen problems with people whose POS systems has errors with the ATO.

4) Start planning a date for your stocktake. Although it is not an ATO rule, it is a valuable method of stock control. It's the best way of determining what stock has been lost to theft, spoilage or taken for personal use. I recommend that all businesses do a stocktake at least once a year. Also, without one, you may have a dispute with the ATO over your stock holding.

Good preparation is the key to stocktaking as it is a lengthy and often expensive operation. Typically a shop is looking at four (4) days of work.

We will be doing webinars to help you prepare soon for the EOFY.

"By failing to prepare, you are preparing to fail." — Benjamin Franklin.

No matter how accurate you keep control of your stock, manual stock counts are a must for any business. These stock counts verify your system. Besides giving you a verified figure for the ATO, it allows you to investigate discrepancies. 

Here are my top tips so you can have a smooth and successful stocktake.

Have as much as possible worked out in advance. For example, do you have access to detailed records of your inventory first? Questions will come about while going through your stock, and you will need a quick answer. 

Also, what are you going to do about damaged goods? They need to be divided into write-off, discountable and return to supplier.

Decide how you will count? 

I suggest you count from bottom to top, left to right. 

Each staff member should have a place marker to mark what they have counted. This helps people missing stuff. While counting, why not check the pricing too? Often, you can clean too while items are being removed and counted.

Now have a backup at the start in case. Do backups a few times during the stocktake. If something goes wrong, you may not lose all your work.

If possible, count everything. Be aware that sometimes you will need to estimate. Once, I had to count a big pile of underwear, I got about 50, and my supervisor said there should have been 55. we wrote down 52.

In the end, do a backup again. We have had people enter everything in. Someone not knowing what to do pressed the wrong button and wrecked all the figures. This stocktake had to be redone.

Once the stock is counted, the next step will be to process and analyse the information gathered. This will be the subject of another post.

This is essential, to find out what has been going on with your stock.

Now to do this, you need some planning. A typical client of ours tends to need about four working days to count their stock. So budget accordingly, e.g. one person four days or four people one day. This is a personal preference. Some prefer to do it in one hit and get it over, while others prefer to do a rolling stocktake over a few days.

I suggest that if you are going to do it in one hit, do a trial stocktake a few days earlier. Pick a tiny department to acquaint yourself with the procedure first. Although you may have done many stocktakes in the past, it has probably been a year since you have last done one. Lots have happened in the meantime, so things do tend to have been forgotten. Go over the correct computer procedures. The more you know, the less time and money it will cost you while extra staff are counting. 

We will be doing some webinars on this all soon.

Try and move now as much stock as you can out of your shop. Return to a supplier, have an EOFY sale, etc. The less you have in the shop, the less to count.

Okay, you need to schedule. Set actual dates and times for the stocktake. Pick quiet periods to avoid distractions. I recommend that you break down the shop into manageable units. In my experience, it is best to make these units smaller than bigger. You can always do more units in one day if you have time. It's a pain to half a unit left for the next day.

Now make sure that your point-of-sale system is up to date. All the relevant stock receiving and sales information is entered. The last thing you want to do during a stocktake is hunt around in your files for correct stock information.

Go over the shop and make some order. Check your stock is tidy and in logical order. This will make it much easier to count.

To be continued...

Good preparation is the key. Stocktaking is a length and often expensive operation. So now the stocktake season is upon us again. It is time to prepare.

We have now updated help documents available in posBrowser's help files. To get them press F1 in the register.

There are various Stocktaking methods

Pick the one that is best for you.

Stocktake = Standard stocktake doc using Posbrowser on its own to run the stocktake.

Stocktake with a PTD = Stocktaking with the help of a PDT

Stocktake with the stock management system = Stocktaking using the mobile PDA browser program.

3rd Party Stocktake guide = This is a guide on uploading stocktake data to and from another program. This is if you use a specific stocktake software

We recommend doing the stocktake while the shop is trading as there is no reason to shut the shop from trading.

I suggest that you have a quick read of the steps required, and then watch this Stocktake training video

If you have any questions let me know.

Now is a perfect time to make a stocktake sale.

Please keep it simple and focused.

Concentrate on the stock that you need to clear. Then place them in a prominent position with a sign. Make sure that people outside your shop in front can see your stocktake sale sign.

Want some ideas of what stock to use, this is the report to use.

Go to Register reports > Stock > Slow-moving Stock lines

Now call it up here, you will get a screen like this

I am going to do it by the department because it is easier to assess and collect if you work in a logical order. Here I asked for anything that I had sold less than $100 in a year and am now stocking something.

Interestingly this shop when I ran the report had over $20,000 of worthless stock in just this department.

This is just one report in our point of sale software that can help you expand your business and grow.

Many of you have now done a stocktake, so you have your figure for your accountant.

You have the information, now what you need to do is look for the stock discrepancies. 

What went wrong in this year!

What you need to know is your stock shrinkage? 

Can you answer this simple question? Some of the largest retailers in Australia cannot. But if you do not know what it, how do you fix it?

The good news is with our point of sale software; it would be easy to find out now.

*Go to your stocktake section

*There you will find reports show the discrepancies (variances) in the stocktake.

*Highlight the discrepancies that have occurred.

These discrepancies will be due to many reasons. Shoplifting, both internal and external, will be a significant cause. So it is worth checking what is missing.

Examine the stock discrepancies by suppliers. Supplier errors are a big problem with my clients. Some have told me the total cost of their point of sale system paid for itself by this saving alone.

But keep looking at these figures. I would suggest looking by department and then item. 

Try to identify areas that have high-security concerns. Now consider what to do, e.g. more cameras, a new arrangement in your shop, and better stock controls. As a bonus rearranging your store will also give your shop a fresh look.

This analysis can save you a lot of money, saving on 1% of every million dollars is $10,000, not bad for a few hours work.

Last call for your stocktaking webinar which will be held Facebook Live, on Friday 26th June, at 10 am!

What we will cover will be 

-Various Stocktaking methods

There are several stocktaking methods that our user's typical use. We will be running over the options and how to proceed with each one in term. This will enable you to plan your approach.

-How to Stock Take whilst your shop is trading

We will run through what you should do so the shop can still trade which you are doing a stocktake. 

-Understanding Stocktake reports

You need a final figure, we will show you how to get that. Yet you can get so much more from your stocktake then that. We will run through many useful items that are available to you. Then you will need to consider and reviewed what you want from these points.

-Checking for variances, shrinkage and / or theft

This is almost as important as the stocktake valuation. We will be showing you how to determine how much of a problem you have here. We will also show you how to identify where it is happening.

-General Discussion

Got anything you wish to add or comment, go for it here.

To join, go to https://www.facebook.com/POSSOLUTIONSAU/Live  at 10 am!

Hope to see you then.

While you are there, why not go to the POS Solutions Facebook Page and like us? That way you will be informed on future webinars too.