A physical inventory is only as good as the preparation that precedes it. Here are the five most important steps to take before your next count — and why each one matters more than most parts managers realize.
1. Run and Resolve Your Negative On-Hand Report
Negative on-hand quantities are a symptom of a broken procedure somewhere in your operation. Left unresolved, they will distort your count and create reconciliation problems that are difficult to explain at closing time. Find the root cause, fix the procedure, and correct the quantities before the count team arrives.
2. Clean Up Your Bin Locations
Bin drift — parts that have migrated away from their assigned locations over time — is one of the most common causes of counting errors and slowdowns. Walk your parts room, verify that parts are where your DMS says they are, and assign locations to anything currently sitting without one.
3. Resolve Your Special Order Aging
A special order bin full of aging, unclaimed parts creates confusion during the count and triggers questions at reconciliation that nobody can answer cleanly. Run your aging report, contact customers, return what can be returned, and arrive at inventory day with your special order situation fully documented.
4. Submit Your Manufacturer Returns
Pull your obsolescence report and identify every part still within its return eligibility window. Submit those returns now. Every part that leaves on a return authorization before count day is a part that does not need to be counted, reconciled, or written off. The credits go directly to your bottom line.
5. Run Bin Checks on Your Highest-Value Sections
Use the weeks before your inventory to run targeted bin checks where discrepancies have the greatest financial impact. Correct what you find now rather than discovering it for the first time on count day when there is nothing left to do about it.
The departments that take these five steps seriously do not dread their physical inventory. They approach it with confidence.
If you have not scheduled your next inventory yet, now is the time. The calendar fills faster than most parts managers expect, particularly as year-end demand peaks. Visit www.precisioninv.com to learn more and get on the schedule before the fourth quarter crunch arrives.