A stocktake: that moment when you have to count, check and sometimes count again what is actually in your warehouse… Yet, with a little forward planning and the right method, preparing for a stocktake can become a much simpler process and, above all, a very useful way to improve stock accuracy.
In summary
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Why is it important to prepare your stocktake properly?
Before looking at preparation, let’s quickly recap the purpose of a stocktake. A stocktake involves physically counting the goods held by a business, then comparing the quantities actually found with those recorded in the IT system. In other words: does what my software says I have actually match what is in my warehouse?
This comparison can highlight discrepancies caused by data entry errors, unrecorded movements, damaged goods, losses or picking errors. In France, stocktaking also has an accounting dimension. The French Commercial Code requires businesses to carry out an inventory check at least once every twelve months.
But beyond this requirement, a stocktake is above all an indicator of how reliable your inventory management is. If there are numerous discrepancies, the counting itself may not necessarily be the issue. They can reveal deeper problems in receiving, put-away, picking or stock movement recording processes.
How should you prepare for a stocktake?
An effective stocktake does not begin with the first item counted. It starts several days, or even several weeks, beforehand, with the preparation of both the warehouse and the data.
Define the scope of the stocktake 📏
What are we going to count? That is the first question to ask. This step helps you define the scope of the count and avoid missing areas or, conversely, counting the same products twice.
You should also identify stock requiring particular attention: quarantined products, customer returns, damaged goods, off-site stock, goods awaiting receipt or dispatch, and so on. For a complete stocktake, every product should be linked to a clearly identified SKU and storage location.
Organise and identify storage areas 🧹
Counting stock in a disorganised warehouse is a bit like looking for your keys in a messy house: it can be done, but it is definitely going to take longer. Before the stocktake, take the time to:
- Organise the goods;
- Group products together where appropriate;
- Clearly identify storage locations;
- Check labels and barcodes;
- Isolate damaged or non-compliant products;
- Identify pallets, boxes or products awaiting processing.
The physical organisation of your stock makes counting easier and reduces the risk of missing or double-counting the same goods. Consistent product identification and labelling are also an important foundation for stock accuracy.
With Satelix WMS, products are linked to their locations within the warehouse and movements are recorded as operations take place. The aim is to make it easier to know what needs to be counted and where to find it during the stocktake.
Find out more about Satelix
Process stock movements before the stocktake 🔁
This is certainly one of the most important points!
Before starting the count, you need to make sure that physical and system stock movements are consistent. Imagine a pallet has physically arrived at the warehouse, but its receipt has not yet been recorded. You count it during the stocktake and then record its receipt afterwards. This could artificially create a discrepancy.
Receipts, dispatches, transfers and any other pending movements should therefore be processed or clearly isolated before counting begins.
🔗 Read more: Inventory: How to Avoid the Most Common Mistakes?
Prepare your teams and allocate areas 🚧
A stocktake is also about people and organisation. Every operator should know:
- Which area they need to count;
- The order in which the count should be carried out;
- How to identify a SKU;
- How to enter the quantity counted;
- What to do if a product is unknown or stored in the wrong location;
- How to report an issue.
👉 Ideally, a common method should be defined before stocktake day.
Prepare your counting tools 🧮
Paper, spreadsheets, barcode scanners, mobile terminals… There are several possible methods. The key is to ensure that operators can clearly identify the location, SKU and quantity counted. In a warehouse equipped with a WMS (Warehouse Management System), mobile terminals can simplify this process by allowing operators to scan storage locations and products.
This is also one of the advantages of Satelix WMS: operators can work directly on the warehouse floor using mobile terminals, while information is centralised within the system instead of relying on multiple sheets of paper and manual data entry. Less manual data entry also means fewer opportunities to turn a “12” into a “21” – something that unfortunately happens more often than you might think…
📥 Free download: The perfect checklist for carrying out your stocktake
How should you carry out the count on stocktake day?
Count methodically, area by area 📍
To avoid missing anything, counting should follow a clear process.
For example: Area ➡️ Aisle ➡️ Location ➡️ Item ➡️ Quantity
Each completed location should be clearly identified as counted to avoid duplicates. For products managed by batch or serial number, the same level of detail should naturally be maintained during the stocktake. Inventory management tools can therefore provide detailed lists by SKU, location, batch or serial number.
Don’t rely solely on theoretical stock ❌
The whole point of a stocktake is to check the stock recorded in your system. The theoretical quantity should therefore not influence the operator’s count.
If the system shows 48 units but the operator physically finds 46, their role is to record 46, not to search at all costs for the two missing items simply to reach the expected figure.
👉 Physical stock should be recorded first. The discrepancy can then be investigated afterwards.
🔗 Read more: Stock discrepancies: why do they happen and what can you do about them?
What should you do after the stocktake?
Identify and check stock discrepancies 🔍
Now it is time to compare: Theoretical stock – Physical stock = Stock discrepancy.
Let’s take a very simple example. Your WMS shows 150 units of a particular SKU, but your team physically counts only 147. You therefore have a stock discrepancy of 3 units.
Before immediately adjusting the quantity in your system, it is worth understanding why the discrepancy occurred.
Recount SKUs with discrepancies 📑
A significant discrepancy will generally require a second check. Recounting helps determine whether the difference is simply due to:
- A counting error;
- An item stored in the wrong location;
- A product being counted twice;
- An unrecorded stock movement;
- Confusion between two SKUs;
- An issue involving a batch or serial number.
Inventory management systems make it possible to compare physical quantities with expected quantities and then process any discrepancies identified.
Analyse the causes rather than simply correcting the figures 💡
Correcting a discrepancy fixes the problem in the software, but understanding its cause helps prevent it from happening again.
If the same SKU regularly shows discrepancies, it may be useful to analyse its journey through the warehouse: receiving, put-away, transfer, picking, packing or dispatch.
This analysis turns the stocktake into a genuine continuous improvement tool.
Can a WMS make preparing for a stocktake easier?
A WMS (Warehouse Management System) makes it possible to track movements within the warehouse and maintain a structured view of stock levels and storage locations.
With Satelix WMS, warehouse operations are recorded as they take place: receiving, put-away, transfers, picking and dispatch.
👉 This traceability helps maintain more accurate system stock and simplifies checks during stocktakes.
Satelix WMS can help businesses to:
- Structure warehouse storage locations;
- Identify products using barcodes;
- Record movements using mobile terminals;
- Manage batch and serial number traceability where required;
- Simplify stocktake operations;
- Exchange stock information with the connected ERP system.
The 7 key steps for preparing your stocktake
To sum up, preparing for a stocktake involves seven key steps:
- Define the scope and SKUs to be counted.
- Organise the warehouse and clearly identify storage locations.
- Process any outstanding stock movements.
- Organise teams and allocate counting areas.
- Prepare the tools: lists, scanners, mobile terminals or a WMS.
- Count products methodically and record the quantities found.
- Check and analyse discrepancies before updating stock levels.
Your next stocktake could be much easier with Satelix WMS!
Simplify your stocktakes with Satelix WMS
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