On january 1, 2016, pet friendly stores adopted the retail inventory method. inventory transactions at both cost and retail, and cost indexes for 2016 and 2017 are as follows:

The division is done in terms of cost or value and then do the counting.

Merchandise is divided into three groups.

Group A: Corresponds to 20% of items higher in cost or turnover.

Group B: 60% of following products.

Group C: The remaining 20%.

The next step is to decide how often each group will be counted, the frequency will depend on the inventory and warehouse, and several cycle counts per year must be completed to maintain true accuracy.

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Tips when counting inventory cycles

To consider the seasonality, it is important to have a response of a certain product when it is in season where its sale is high, it is a waste of time and effort to have a product that will not have immediate mobility.

You can choose to count in cycle by department, supplier, type of product, the brand, among others, depends on personal criteria and what makes the most sense for the business. Regardless of the method, the key is to maintain a certain order, establish a systematic procedure, organize and document it, to avoid errors.

Implement the use of tools that allow greater efficiency and allow to quickly detect problems, use an inventory management software for this work.

Reorganize the physical space properly to implement true inventory control. This involves organizing the items on shelves, establishing an order and site for each product in addition to the corresponding labeling.

Keep up to date, restocking, timely handling of reserve material.

It is important to keep track of purchase orders in system and physical.

Count the products, double check the numbers and keep the system up to date.

After counting, the records should be reviewed, adjusted and determined the course of the actions to come.

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