Inventory People is a premier Canadian inventory company, offering experienced inventory counting specialists to their clients. As a third-party inventory service company, Inventory People will provide auditors, managers, and consultants to companies throughout Canada. With expertise in managing inventories in various settings such as retail stores, warehouses, distribution centres, and industrial environments, Inventory People can help you streamline your inventory count process and save money. Whatever your inventory needs may be, Inventory People has the experienced personnel to assist you.

Partnering with RGIS will give Inventory People additional support and infrastructure to provide ongoing accurate inventory and asset verification results to their customers in Canada. Inventory People and their customers will benefit from the use of RGIS’s cutting-edge technology and inventory management systems, which help streamline operations and increase efficiency. RGIS wireless inventory counting technology allows for secured data capturing. There are no limits to what can be captured and or validated. The RGIS proprietary hardware and software solutions are specifically designed to deliver accuracy, speed, and reliability.

The strength of the RGIS and Inventory People partnership is unbeatable. The numbers speak for themselves with over 3,000 satisfied customers, 174,000 inventories a year and over 13,000 people using the inventory counting solution, every day. This allows Inventory People to provide superior service to their clients, leverage the company’s brand recognition and reputation to grow the business in Canada.

Becoming a partner with RGIS offers a unique opportunity for entrepreneurs to start their own business while also benefiting from the support and resources of a well-established and successful company. With RGIS’ proven track record of success and ongoing commitment to innovation and excellence, there has never been a better time to join the RGIS franchise network.

What is Inventory Counting?

Inventory counting is the process of physically counting the items in your inventory to verify the accuracy of your records. It is essential to ensure that your records match what you actually have in stock. There are several methods of inventory counting, including cycle counting, annual or periodic inventory counting, RFID solutions, and spot-checking.

A: Cycle Counting

Cycle counting is a process where a subset of your inventory is counted on a regular basis, typically daily, weekly, or monthly. This process helps you identify discrepancies in your inventory records quickly and correct them before they become a significant problem.

B: Periodic Inventory

Annual or periodic inventory counting involves counting your entire inventory at regular intervals, usually once a year or every six months. This method is useful for businesses that have a large number of SKUs or products and want to ensure that their records are accurate.

C: Spot Checking

Spot checking is a process where you randomly select a portion of your inventory and count it. This method is useful for businesses that want to verify the accuracy of their records quickly.

The Benefits of Efficient Inventory Counting

1) Improved Customer Satisfaction

Efficient counting from a professional inventory counting company helps you avoid stockouts, which can lead to delays in fulfilling customer orders. With accurate inventory records, you can ensure that you always have the products your customers need in stock, reducing the chances of delays or cancellations.

2) Reduced Waste

Efficient inventory counting can help you reduce waste by identifying products that are not selling well or have reached their expiry date. By identifying these products early, you can take corrective action, such as offering discounts or disposing of them, before they become a significant liability.

3) Increased Profitability

Efficient inventory counting helps you identify products that are selling well and those that are not. By identifying your top-selling products, you can reorder them quickly and reduce the chances of stockouts. You can also identify slow-selling products and take corrective action, such as offering discounts, to move them out of your inventory quickly.

4) Better Decision Making

Efficient inventory counting provides you with accurate and up-to-date information on your inventory levels, which can help you make better decisions. With accurate inventory records, you can identify trends in sales and adjust your purchasing and sales strategies accordingly.

5) Compliance with Regulations

Efficient inventory counting can help you comply with regulations governing the storage and handling of certain products. For example, if you sell food products, you must comply with regulations governing the storage and handling of perishable items. Accurate inventory records can help you ensure that you are storing and handling your products correctly.

Conclusion:

Efficient inventory counting is a critical aspect of any business that deals with physical products. By streamlining your inventory counting processes, you can improve inventory accuracy, reduce costs, and make better-informed decisions. Investing in technology, conducting regular physical counts, and implementing efficient inventory management processes are all key steps in achieving efficient inventory counting. With the right tools and strategies in place, businesses can gain a competitive edge and achieve long-term success.

In this article, we will sharply explore the different kinds of inventory counting and what are their advantages and disadvantages over each other.

I. Periodic Inventory Counting

Periodic inventory counting is the most basic and straightforward method of inventory counting. It involves taking a physical count of all inventory items at the end of a specified period, usually monthly, quarterly, or annually. The count is then compared to the recorded inventory levels to determine if any discrepancies exist. The followings are the pros and cons of periodic inventory counting.

Pros:

• It is easy and straightforward to conduct.
• It quickly resets inventory accuracy
• It can help identify inventory discrepancies.

Cons:

• It does not provide a sustainable inventory control solution
• It can be time-consuming, especially for extensive inventories.
• It can result in stock shortages or stock overages if not conducted frequently or accurately enough.

II. Cycle Counting

Cycle counting is a method of inventory counting that involves counting a small portion of the inventory frequently, typically weekly or monthly. The cycle count is then compared to recorded inventory levels to determine discrepancies. The followings are the pros and cons of cycle counting.

Pros:

• It provides real-time inventory levels and helps identify discrepancies immediately.
• It requires less time and resources compared to periodic inventory counting.
• It can help prevent stock shortages and stock overages.

Cons:

• It can be challenging to implement
• It requires a lot of operational discipline

III. Inventory Variance Verification Analysis and Adjustments

ABC analysis is also a main method of counting inventory items. It can be done by counting items into categories based on their importance. The classification is typically based on the value of the inventory items, with items being the most valuable and items being the least useful. The followings are the pros and cons of an inventory based on Inventory Verification Analysis and Adjustments.

Pros:

• It helps identify items with the highest variances.
• It helps prevent stocks from the high volume items.
• It can help optimize inventory accuracy for high-valued and high-turnover items

Cons:

• It requires a significant amount of data and analysis to implement.
• It may not be as effective for businesses with many inventory items.
• It does provide an overall accuracy level of your total inventory

IV. RFID Counting

RFID counting is a method of inventory counting that uses radio frequency identification (RFID) technology to track inventory items. Each inventory item is tagged with an RFID tag, which RFID scanners can read. The followings are the pros and cons of RFID counting.

Pros:

• It provides real-time inventory levels and helps identify discrepancies immediately.
• It is more efficient and accurate compared to manual counting methods.
• It can help prevent theft and reduce holding costs.

Cons:

• It requires a certain level of CAPEX investment.

Conclusion

Accurate inventory counting is essential for any business to maintain proper inventory levels and prevent stock overages and shortages along with minimizing stock discrepancies. 

The choice of inventory counting method depends on several factors, including the inventory levels, the resources available, and the level of absolute accuracy required. 

Periodic inventory counting is the most basic and straightforward method. In contrast, cycle counting, Inventory Variance Verification Analysis, and Adjustments are perfect to get an assessment of your accuracy level on some of your items while RFID counting solutions are more advanced methods that provide real-time inventory levels and help identify discrepancies instantly.

Although most businesses acknowledge that inventory management is a vital component of efficient operations, many struggle to achieve accurate counts. Instead, they are content with counting done internally by workers not trained for inventory counts.

Why you should outsource your inventory counts

Reduce time

Many businesses rely on their staff to conduct occasional inventory counts, while this is not a problem by itself, using your own employees does take more time. When you rely on your staff to conduct the counts, you use people who are experienced in other positions and sometimes have zero experience in inventory counts therefore it will take them longer to get the task done. Instead, you can rely on a team of inventory professionals who are trained and experienced in this exact area. After conducting so many counts in various businesses and industries, those professional teams can get the count done easily and as quickly as possible, using the best tactics and methods for the best outcomes.

Reducing costs

Outsourcing your inventory counts can be more cost-effective than having your own staff take those counts. As mentioned before, since the employees who do the counts are not trained for that it will require them longer and they will need more manpower to do this. All of which eventually cost the business a fortune. Not to mention human errors that lead to a lot of money being lost.

Reduce the risk of errors

Outsourcing your inventory counts can also help you reduce the risk of errors and inaccuracies. Even the most diligent staff members can make mistakes when counting inventory, especially if they are rushed or distracted, which they usually are. By working with a professional inventory count service, you can ensure your counts are accurate and reliable, which can help you avoid costly mistakes and ensure your business runs smoothly.

Improve accuracy

Another benefit of outsourcing your inventory counts is that you can gain valuable insights into your business. Inventory count services often provide detailed reports that show you exactly what you have in stock, where it is located, and how quickly it is selling. This can help you make informed decisions about ordering and restocking, as well as identify areas where you can improve efficiency and reduce waste.

Additionally, in some cases, employees will try to show better numbers than those in reality from the fear they will get in trouble or get suspected by management. So, for example, if the store was supposed to have 9 pieces of a certain item and the employee counted just 8 he might write that there are 9 to look better in front of management. Therefore, getting someone unbiased to count and provide the data is very important.

Help companies innovate their inventory management

Outsourcing inventory counts can assist your business in integrating technology into your supply chain. Inventory People is a leading company that provides a cutting-edge inventory management solution, designed to seamlessly manage your merchandise from start to finish in the supply chain. Offering a state-of-the-art RFID solution developed by Chainlane, which combines sophistication with user-friendly features. With this comprehensive platform, you can gain complete control over your inventory, ensuring efficient tracking and management at every stage of the supply chain.

Improve staff satisfaction

Many employees find inventory count as exhausting and draining task that they wish to avoid. In fact, retailers claim that inventory counts are the worst task in the retail industry. Hence, taking this task out of their hand can improve their satisfaction and allow them to focus on selling more and providing better customer service with a smile on their face.

In conclusion, outsourcing your inventory counts can bring numerous benefits to your business. By reducing time, saving money, decreasing potential errors, providing accurate data, and improving staff satisfaction, you can take your business to the next level. Working with professional inventory count services, like Inventory People, can give you the confidence and reliability you need to make informed decisions about your business. So, if you are looking to improve accuracy and reduce costs, outsourcing your inventory counts may be the right choice for you.

Contact us today to learn more!

She earned her CPPA designation along with other men and women from across Canada. As a graduate of this course and a member of the CPPAG she is now qualified to perform all types of personal property appraisals including business equipment, furniture, insurance, to complement our inventory services.

This further extends our commitment to provide professional Valuation, Appraisal and Asset Management Services to Companies, Insurance Companies and Financial Institutions Nationwide.

We are very proud and honoured to have been accredited and Certified by The Canadian Personal Appraisers Group of Canada.

Inventory People is a privately owned and independent company providing companies in Canada with Inventory Management Consulting services, Inventory Counting Services, RFID Technology Solutions and Professional Valuation, Appraisal and Asset Management Services – Contact us at information@inventorypeople.com for more information, we have your success at heart.