How to Prepare Your Inventory for a Physical Count - Part 1

  Mike Bachara   |     Feb 28, 2019

The steering wheel of a car

Your physical inventory count will only be as accurate as your parts department is organized. That is why, before you start counting your automotive parts, it’s important for you to prep your inventory.

Doing so will help improve the accuracy of your count and ensure your physical count is completed as efficiently as possible. 

1 - Organize your parts

If you inventory is in disarray, it will increase the amount of time it takes to complete the count, create more disruption and could even affect your actual count. This will make it difficult to keep track of which parts have been counted and which parts have been missed.

By ensuring that all parts are in their proper location and that each skew is easily identified, you can ensure that you are accounting for each part properly, as well as minimize the number of errors resulting from storing parts in multiple locations.

2 - Identify countable and uncountable parts 


Prior to doing inventory, clearly mark the areas you do not want counted with DNI (do not inventory) labeling. This includes parts that have been pulled for a job still in progress and parts that are already in process of being returned.

3 - Designate counting areas

Before diving into your inventory count, take the time to designate counting areas and create a map or list of your storage area. This will decrease the likelihood of parts being counted multiple time and gives you an opportunity to ensure all storage areas are covered. If there are specific areas that do not need to be counted, mark these off the map or list as well.

While these may seem like straightforward steps to take, many dealerships do not recognize the importance of ensuring their inventory is organized for the big count. By taking the time to prepare your stock, you can minimize the time it takes to count, reduce disruptions and increase accuracy.

4 – Check your negative on hand counts

Look over any parts that are oversold to determine whether they are pre-billed, or over sold. Reset the parts that are over sold to 0.

5 – Check for parts with no cost

Any parts in the system that have an on hand greater than one, must have a cost price, or if the part is incorrect, delete it from the system.

6 – Delete any incorrect Bin Locations from the system

Throughout the year, bin locations are inadvertently added by mistake to the system. In preparation for the physical is the time to remove the bad locations.

7 – Make sure all parts are labeled correctly

During the count is not the time to be looking up part numbers. You should have all parts labeled with the correct part numbers as they appear in your DMS. This goes for tires, boutique items, and any other Non-OE parts.

This list is far from complete, however it is where you should start in preparation for your Physical Inventory. Look for our next blog for more tips in prepping for your annual Physical Inventory!

At Pro Count West, our team of inventory professionals will take the steps necessary to ensure your inventory records are accurate. To find out how we can help you team get ready for your physical inventory count, or to have our team come in and complete the task for you while your department focuses on other tasks, contact us today!

Guide to Optimizing Inventory MGMT

By Mike Bachara

Mike Bachara | Owner of Pro Count West
Mike Bachara | President Pro Count West

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