Explain the necessity of inventory counts and why they are so critical for retail stores and distribution centres?

There are a couple of reasons why Inventory counts are necessary. I could outlined a few below. 

1. Inventory counts always help to create an effective balance between demand and supply

2. What to sell and how much to sell is also catered with precise inventory counts

3. Retail industry is the most volatile and changing industry. Customers switch to the new tech, new design or new specs. Thus its very important to have inventory counts to identify slow moving item. This identification will trigger some sort of promotion or sale tactic to get rid of it before it converts into dead stock. 

4. Its also important Financially because stake holders will always want to know how much cash is stuck in inventory. This also helps them to evaluate performance of the Supply Chain, Purchase and Inventory managers. 

it helps us to achieve the pharmacy procedures accurately , to avoid loss and to get accurate data on the system and to also assure the effectiveness of our procedures and system control.

The necessity of physical inventory is unavoidable because of the following reasons;  

1. To match physical and system stock by avoiding the errors happened in a specified time period

2 .For auditing purpose.

Predominantly its perpetual method following globally but conventional system of periodic count is still exists.If we are maintaining an accurate inventory and there is no need to put the annual inventory summary report in front of CFO , then this inventory counting is waste of time and resource. 

Cycle count or inventory count is very important in any organisation that in order to have control on stock and discipline for retailer shop in case any short 

so keeping cycle count is the way to have accurate Match between System  & Physically stock 

 

Firstly the regular inventory counts makes updated about the inventory to the emplyee, store keeper and the person responsible to invetory handling. It hepls in placing orders, maintaining healthy safety stock and helps in accurate calculation of inventory flow. For retail stores the correct record of stock helps in providing better service to ther customers.

Retail stores and distribution centers are like front liners to serve the customer demands. Retails are directly serving the customer and they are selling up to the last piece of inventory they have. Accurate and dependable inventory count is essential to them because they are relying on the data that they need to commit to customer and potential buyers. Additionally, Inventory count also serves as their tool or reference for decision making to order or purchase materials from supplier and to avoid stock out and prevent the loss of business and oportunity.