Mr Sammy is a bookstore owner. At the initial stage of starting his business, he was maintaining perfect stocktaking of his books. He would record each book in his notepad anytime he got new books for easy tracking. He was diligent with it.

But problems began to ensue for him a few years down the line when his business expanded due to loans he took. He employed three people to work full time for him, yet the problems persisted or even became worse than before. He couldn't stocktake again because of the volume of supplies he was getting from his distributors. Despite teaching his staff to how to do it, still, no solution.

Two of his employees noticed this loophole. They took advantage of the situation and connived with each other to sell books yet to be recorded in the stocktaking pad without remitting the money to Mr Sammy. He didn't notice this manipulation going on until he began to pay back the loans. He perceived he was not getting enough profit after expenses and payment of salaries.

What are the solutions Mr Sammy needs?

1. Regular Stocktaking

It is advisable that he should get an external stocktaking expert to assist him regularly. This expert will count, record and give him documents of all he has in his store. This activity must be done before his employees begin selling. By doing this, he'll know the worth and number of books in each category.

2. Random Spot Checks

He should make an agreement with the external stocktaking expert to come around at an agreed time to randomly spot check. The expert will pick different books from different categories and check if they tally with what is in the stocktaking documents.

These two solutions alone will checkmate the fraudulent acts of Mr Sammy's employees and his business will not have issues with inventory management again.

Are you experiencing the same issues as Mr Sammy in your business?

Reach out to me to assist you with the two solutions aforementioned.