Field notes
Preparing the warehouse for inventory observation
Inventory observation is not a surprise inspection. It works best when the warehouse already knows how the count will run and which SKUs move during the freeze.
Freeze and tags
Agree a freeze window when shipments pause or are logged separately. Pre-number tags or lock the system count at a known time. Auditors will select locations for test counts; leave those aisles accessible.
Slow-moving and damaged stock
Identify obsolete or damaged items before observation day. Auditors often expand samples in dusty corners. A short list of known write-down candidates speeds the conversation about net realisable value.
Who should attend
A warehouse supervisor who knows bin locations and a finance person who can reconcile the count to the general ledger should both be present. Leaving only temporary staff on the floor slows every recount.