A warehouse that has never run a physical stock count does not have inventory data — it has assumptions.
Start here
- Warehouse management — location-based stock tracking with movement history
- Inventory management — item-level quantities, reservations, and valuations
- Audit logs — every stock adjustment is recorded with reason codes and approver
When to count
Most UAE construction and trading companies should run a full physical count at least once per year, with cycle counts (partial counts by category or location) monthly. Cycle counts spread the workload and catch discrepancies before they compound.
Schedule counts during low-activity periods. Freeze inbound and outbound movements during the count window to avoid counting a moving target.
How to run the count
- Generate count sheets — export current system quantities per item per warehouse location from inventory management
- Blind count option — for higher accuracy, issue count sheets without system quantities so counters record what they physically see
- Two-person count — one person counts, another records. For high-value items, use independent double counts
- Record variances — compare physical count to system quantity. Flag any item with a variance above your threshold (e.g., 2% by value or any unit count mismatch)
- Investigate before adjusting — variances are not errors by default. Check for pending GRNs, unreported issues, or misplaced stock before posting adjustments
Adjustment controls
- Stock adjustments require a reason code:
damaged,theft,count-error,misplaced,system-error - Adjustments above a value threshold require manager approval via approval matrix
- Every adjustment posts to audit logs with the counter name, date, variance amount, and reason
- Reversals of adjustments require separate approval — no silent undo
After the count
Publish a variance summary report: total items counted, total variances by category, and net value impact. Share with operations and finance. Use the data to identify systemic issues — if the same items show variances repeatedly, the root cause is process, not counting.
Feed the results into your warehouse management setup to improve bin accuracy and reorder triggers.