Stocktaking is rarely the logistics team’s favourite task. Between counting SKUs, investigating discrepancies and keeping track of stock movements, the process can quickly become time-consuming. However, some of these difficulties can be avoided with a little organisation and the right tools.
In summary
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Why can stocktaking become so complicated?
A stocktake involves comparing the quantities physically present in the warehouse with the quantities recorded in the information system. On paper, it sounds simple enough: count, compare and correct. But in reality, it can be a very different story!
A product stored in the wrong location, a receipt that has not been recorded, a return left in a corner of the warehouse or even a data entry error can create a discrepancy between physical and recorded stock. And the more these small anomalies accumulate throughout the year, the more likely they are to surface during the stocktake.
Stock accuracy therefore does not depend solely on what happens on stocktake day. Above all, it depends on the quality of day-to-day operations: receiving, put-away, transfers, picking, returns and dispatch.
Mistake #1: Leaving stocktake preparation until the last minute
A stocktake does not begin when the first operator picks up their handheld device or counting sheet. It starts beforehand. Beginning without clearly defining the areas to be checked, the teams involved, responsibilities or how specific goods should be handled can quickly make the process more complicated.
Poorly defined areas = a risk of missing stock ❌
In a warehouse, stock is not always limited to picking locations. It may also be found:
- in a receiving area;
- on a loading bay;
- in a returns area;
- in quarantine;
- in a temporary storage area;
- in a reserve storage location.
Without a clearly defined scope, the same goods may be counted twice… or not at all. Before starting the stocktake, it is therefore important to know exactly what needs to be counted, where it needs to be counted and who is responsible for it.
With a WMS (Warehouse Management System) such as Satelix WMS, goods are assigned to identified locations within the warehouse. This traceability makes stock easier to locate and gives teams a clear, system-based warehouse structure to work from.
Mistake #2: Letting stock movements interfere with the count
Here is an example: an operator counts 20 units at 10:02 am. A few minutes later, three units are picked for an order. The system then shows a different quantity from the one recorded during the stocktake. You now have a discrepancy whose cause needs to be tracked down. 🕵️♀️
Why do stock movements matter during a stocktake? 🤔
Receipts, picking, transfers, returns… A warehouse is constantly active. If these operations continue during counting without being properly managed and tracked, comparing physical stock with system stock becomes much more difficult.
The solution is not necessarily to shut down the entire warehouse for hours. The key is to control stock movements within the area being counted and know exactly what has happened between two counts.
This is precisely one of the benefits of a WMS: every movement carried out in the warehouse can be recorded as it happens. With Satelix WMS, warehouse operations are connected directly to the ERP. Stock movements are tracked and data can be synchronised automatically.
🔗 Further reading: How can you carry out a stocktake without shutting down your warehouse?
Mistake #3: Relying on too much manual data entry
Paper, pen, Excel spreadsheet, then re-entering everything into the ERP… The method works, of course. But the more information passes between different people and different formats, the greater the risk of error.
One data entry error is enough to create a discrepancy 📱
Entering 18 instead of 81, copying a product reference onto the wrong line or forgetting a piece of information: during a large stocktake, one small error can quickly make the final reconciliation more complicated. Identification technologies help reduce these manual steps. Using barcodes enables faster and more accurate data capture throughout the supply chain.
Scan instead of copying 💡
With Satelix WMS, operators can carry out logistics operations using handheld devices and barcode scanning. The aim is to record data as close as possible to the physical operation taking place on the warehouse floor. Instead of writing information down and entering it again later, the operator scans and validates the operation directly.
This approach is particularly useful for stocktaking, but also for improving the reliability of the stock movements that take place before the stocktake.
Discover Satelix WMS
Mistake #4: Neglecting locations and item identification
The system shows 12 units in A-02-03. The operator arrives at A-02-03 but finds nothing there. That does not necessarily mean there is a stock problem: the 12 units may simply be sitting in A-02-04.
Stock accuracy is also about location 📍
Your stock quantity can be correct while its recorded location is wrong. In this case, the goods physically exist, but they become more difficult to find during picking or stocktaking. Accurate location management makes it possible to know which item is stored where and in what quantity.
It is also important to pay attention to the physical identification of goods. A damaged label, a barcode that is difficult to scan or an incorrectly identified item can slow operations down. GS1 recommends paying particular attention to barcode contrast, size, positioning and condition to ensure they can be scanned correctly.
Here again, scanning items and locations helps secure warehouse operations and improve stock traceability.
Mistake #5: Waiting for the annual stocktake to discover discrepancies
This is probably one of the most common mistakes: waiting until the annual stocktake to check whether the stock recorded in the system still matches reality. Over several months, small anomalies can accumulate. One missing unit here. An unprocessed return there. A put-away error somewhere else. Then the annual stocktake arrives… along with a long list of discrepancies to investigate.
Cycle counting helps check stock more regularly 🗓️
Cycle counting involves regularly counting part of your stock rather than waiting for a full stocktake.
For example, you can check the following more frequently:
- fast-moving SKUs;
- high-value items;
- sensitive locations;
- products where discrepancies regularly occur.
👉 Cycle counting is a method used to check specific items at a defined frequency. Analysing discrepancies identified during these counts can also help highlight problems with processes, tools or training.
🔗 Further reading: Stock discrepancies: why do they happen and what can you do about them?
How can a WMS help prevent stocktake errors?
The benefits of a WMS are not limited to stocktake day. By recording receipts, put-away, movements, picking and dispatch as they happen, a WMS helps maintain more accurate stock information.
The role of Satelix WMS in stock accuracy ✅
Satelix WMS helps SMEs digitalise and manage their warehouse operations.
The solution can be used to:
- track stock movements within the warehouse;
- identify items using barcodes;
- manage storage locations;
- guide operators using handheld devices;
- simplify stocktaking operations;
- connect warehouse operations with ERP data.
Satelix WMS offers connectors for Sage 100C, Sage X3, EBP Elite, Cegid XRP Flex, Everwin and Nextlane, as well as other ERP systems depending on the project. The aim is not simply to make stocktaking easier. Above all, it is about maintaining accurate stock throughout the year, so that a stocktake becomes a verification exercise rather than an unpleasant surprise.
Make your stocktakes more reliable!
A simpler stocktake starts with more accurate stock
Preparing warehouse areas, tracking movements, reducing manual data entry, correctly identifying goods and carrying out regular checks can already prevent many of the difficulties associated with stocktaking. And with the right WMS, stocktaking is no longer simply a major operaion to manage once a year: it becomes part of an ongoing approach to improving stock accuracy and warehouse operations.
🔗 To find out more, discover the key steps for preparing your stocktake.
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