Monday, April 20, 2015

What are the advantages and disadvantages of annual stocktaking?

What are the advantages and disadvantages of annual stocktaking?
Advantage;
Will account for all assists for the company and provide part ofthe companies annual profit and loss report.
Gives a single chance to account for all inventory and data can beused to correct shortfall/over inventory of items held.
provides Procurement data for the business to buyers to work on.

Disadvantages; Very labour intensive, can slow the business dealsin down as staff are deployed to take stock
costly to the business as often additional expertise is required inthe process
Gives only a one a year hit to correct inventory levels if sectioncounts are not used and therefore inventory can be considerably outof sync with expected product holding

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