Getting the Most Out of Physical Inventory
Manufacturers and distributors require accurate inventory to support vital business processes. For these types of business, physical inventories are a mandatory and frequent event. But on it’s own, a physical inventory is nothing more than a “counting” tool. It provides little insight and absolutely no control over the efficient ingress and egress of materials. To ensure accurate financial reporting and to gain efficient operational visibility into the processes that involve inventory items, business managers look to software that integrates their accounting, manufacturing, and distribution activities with the function of inventory control.
The prudent manager recognizes that, without integrated solutions, their inventory management doesn’t get any better in spite of the time spent counting and recording. For the effort of taking inventory to be really useful, there must be some way to keep the data up-to-date and accurate after the counting is done.
When accounting, manufacturing, and distribution transactions update inventory records in real-time, then:
- The manager has an expected count, reported by the integrated solution in real-time, to compare against the results of the physical count.
- Variances between the two counts are highlighted during the post-inventory analysis.
- An examination of these variances can suggest inefficiencies in current practices and serve as a springboard for improvement management.
Supported by an integrated solution, the physical count is no longer a simple snapshot in time; it becomes a tool to help you evaluate how well your overall business processes are functioning. And it can provide you with the data and reliablity necessary to replace the cumbersome physical inventory process with a less-intrusive cycle-counting process.
The Best Physical Inventory Tool Chest
There are all kinds of reasons why physical inventory needs to be done well and why organizations benefit from software that integrates accounting, inventory, and manufacturing. Here are a few tools and recommendations we’ve gathered to help make your next physical inventory more useful.
- Buy and implement an integrated solution for your business. Click here to request more information.
- Use our PowerPoint slideshow titled Phases of Physical Inventory to help train your team. Coming soon…
- Read our guide titled Physical Inventory: Tips for Preparation and Execution. Click here to download your copy.
- If you use DynamicsGP for physical inventory, you will enjoy DynamicsGP Physical Inventory Tips and Tricks. Click here to download your copy.