How to Perform Inventory Count Audit Procedures Easily in Retail Store?

How to Perform Inventory Count Audit Procedures Easily?

inventory Count Audit Procedures is an important task that needs to perform effectively. Every retail or grocery store must perform this activity effectively for accuracy or inventory. Today we will give you full information about the process, so you can easily perform the activity in your retail grocery store effectively.

This activity is divided into various parts, we will explain every part in detail. Ready all details carefully.

Planning and Scheduling for Inventory Count Audit Procedures

Planning and Preparation activities as mentioned below need to be performed for the inventory count.

Pre-Stock Take Process

100% stock take / Physical Inventory (PI) audit activity for each retail store. Store Manager or store owner & Stock Auditor/Asst. Stock Auditor will decide & schedule the process. Once the schedule is fixed we will perform the below pre-inventory count process.

Pre-Inventory count Checklist for Inventory Count Audit Procedures

To run this activity successfully, we will follow the below checklist. If you follow this checklist that the count will be error-free. So read on for the quicker & easier process.

ZSC to send a reminder regarding the Pre stock take checklists at least 7 days prior to the stocktake date to the Store Owner.

Team-wise Scheduling to Perform Inventory Count Audit Procedures

At least 3 days prior to stock take, the Store Manager to provide the details of staff in the Manpower Detail sheet to the Stock Auditor for preparing the team-wise schedule. Store Manager to also nominate a store supervisor for morning and night to supervise the stock take activity for
each day. Housekeeping staff should also be provided to assist the stocktake team.

Store Manager/Area Manager to ensure that, the proposed availability of manpower is consistent throughout the stocktake period for the store & that the manpower made available is trained.

Stock Take Team Briefing for accuracy & effectiveness

Store Manager / Franchise Manager or Asst. Store Manager to brief the stocktake team prior to the commencement of the stocktake. The briefing should include:-

  1. NO movement of stock between back store & floor during PI Activity
  2. Attendance check / Manpower Availability check
  3. Coloured sticker/marker distribution
  4. Query resolution

The Asst. Stock Auditor to also brief the team about the PI Process;-

Global Count & HHT Distribution

A proper place designated by the Store Manager with charging facilities for HHTs to be provided to the stock takes a team. Stock Auditor / Asst. Stock Auditor to direct the store staff responsible for counting to the designated location and performing the count. The Asst. Stock Auditor to ensure that the location-wise global count sheets are collected back from team members.

Scanning Process Important part of Inventory count

The user to strictly scan the location which has been assigned to him & not any other location.
For each location, the location barcode is to be scanned first & then the merchandise available on the Location. The scanning member to ensure that the merchandise found without barcode are segregated in a designated location & handed over to the Asst. Stock Auditor who will in turn handover it to store supervisor.

Completion of the PI/Stock Take activity for the day

Once scanning for all the locations assigned gets completed, the scanning member must cross-check to ensure that each location scanned has been marked with the appropriate color sticker. Store supervisor to submit the merchandise without barcodes to the Store Manager for immediate resolution on completion of the day’s stock take process. Store Manager to ensure that the merchandise without barcode submitted to him/her gets resolved within 24 hrs.

Asst. Stock Auditor to generate a report (Valid Report) of all merchandise scheduled to be scanned on the subsequent days but had been erroneously scanned on the current day. This report is to be forwarded to the Store Manager. Stock Auditor to obtain a sign-off from the Store Manager on completion of the day’s PI activity.

Post Stock Take Process

The store staff must go to the physical location of the article and check if there is any merchandise with multiple barcodes. If found, the staff to get the correct EAN/Article of the merchandise and note it down against the wrong EAN. Store supervisor to send the detail to the stock analyst within 48 hrs. Inwards/Outwards at the store has to start after consultation with the ZSC.

Shrinkage and Variance Reporting

ZSC to finalize Shrinkage/Variance Report & and evaluate the audit report to prepare Inventory Audit Report. Shrinkage report and Inventory Audit report to be shared with Store Manager, Store Owner.


Is Inventory count an important activity for grocery stores?

Yes, it’s a very important part of a grocery store.

How much accuracy we can expect in physical count activity?

Depending upon the volume up to 95% accuracy is expected in the activity.


Today we have given full information about Inventory Count Audit Procedures. If you follow the above process then accuracy is expected up to 95%. If still, you have any query do comment below.

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