6 inventory methods you can use

Today, different food and beverage businesses have given importance to inventory. The main reason to take stock is to identify waste early and then reduce it to a minimum. This will allow companies to have efficient operations, obtaining the expected profitability and achieving service excellence.

The definition of inventory has already been clearly explained, which is why many companies see its importance in achieving success. But there’s more to know and understand about inventory, which can help you run your business well.

There are various types of inventory and they are used at various times, some more, some less. These types of inventory occur at different times, so you need to know when each type of inventory is due.

When does inventory occur?

Businesses have their own distinct requirements for inventory, and each varies from one another. The timing of inventory taking happens differently from business to business. The following are the different types of inventory that can be used:

1. Daily or end of shift inventory– It can be done once or every day. This type of inventory is considered the most accurate means of seeing changes that occur with your inventory. It is also the choice when you have to identify any problems with your products. Inventory is taken immediately after the shift or during business hours for the most accurate results.

2. weekly inventory – is another type of inventory, which can provide accurate results. Inventory is done on a weekly basis to identify problems associated with your products and to be able to fix any problems promptly. This can be used in conjunction with Line Checks for more efficient results.

3. Monthly inventory– if you have a good track record of acceptable waste levels, like any small business, then this type of inventory may be more applicable to you. Monthly inventory can give you a big picture of how your products are performing. This type of inventory is perfect for small businesses.

4. Annual or quarterly inventory – must be done when preparing your accurate profit and loss statements, annual accounts and tax returns. The annual or quarterly inventory is a requirement for all types of companies, in order to determine the profit obtained in the year. This will help you determine if you have efficient stock management. If the result is not satisfactory, you should change your stock management methods or address any other issues that may have caused this.

5. End of Lease Appraisal – If you are going to sell your business, the external auditors would carry out the final valuation inventory of the lease, to determine the applicable amounts between the two parties.

6. line checks – after finding a problem with a certain product, during your daily or weekly inventory, line checks are used to check the stock levels of a particular product to fix the problems. It can be done for a single product or group of products before, during or after business hours.

Determining when is the best time to take inventory can improve your business operations. You can choose from the different types listed above, depending on your business requirements. But it is better to practice 2 or more types of these inventory methods. Combining these inventory methods allows you to better monitor and control your inventory.