- by Ralf
- 28/08/2015 04:02:15
Cost effective stocktakes - what are the benefits of cyclic stocktakes in MYOB Advanced
Undertaking stocktakes in a business is
critical – compliance is only one reason, more importantly it the accuracy of
your stock management system. MYOB Advanced facilitates multiple methods for
counting stock, in this article we examine the key benefits of cycle counting
in MYOB Advanced.
There are 2 basic stocktake types;
- A full stocktake: often referred to as a 'stock
count' and 'physical inventory' involves counting every item, in every
location, in full, all at the one time. Unfortunately due to its disruption factor,
a full stocktake is performed as rarely as possible, often only once a year.
- A cyclic stocktake: regular counts (e.g.
every week) of smaller manageable parts of a warehouse. You choose a range to
count and incrementally work around a warehouse to complete a full cycle over a
period of time. Once a full cycle is completed then a new cycle begins, this
ensures that every item is counted at least several times a year.
Many people believe that a full stock finds
errors and ensures accuracy. Quite often it does not - a full stocktake can be
just as likely to introduce errors as it is to correct them – the main reasons
for this include pressure to complete the task, little time to investigate
variances and review processes. Whilst MYOB Advanced facilitates this full
inventory stocktake the cyclic stocktake should be examined in detail.
A cyclic stocktake on the other hand
involves regular counts, so it can correct location errors constantly, rather
than once a year. It highlights missing stock a lot sooner than an annual full
stocktake. It allows warehouse managers to see operational problems quickly and
react before they become large issues. The smaller counts are easier to manage
and less likely to disrupt normal operations. Since they are performed
regularly, staff members are more familiar with the process and less likely to
make mistakes. Within MYOB Advanced inventory can be segmented into classes,
locations and warehouses to facilitate the easy cycle counting of inventory.
What is better for your business? Talk to
one of the experienced MYOB Advanced consultants at BusinessHub to discuss how
we can help with utilising advanced inventory options within MYOB’s bigger
business cloud ERP solution.