Balance sheets produced by CFO’s and CPA’s are critical in measuring the health of a business. Stock, also known as inventory, is a critical line item of a balance sheet under the header of assets. This strictly applies to distributors and manufacturers who trade with products as opposed to a service business with zero inventory.
Governance in inventory management can be painful if there isn’t proper tracking of inbound and outbound activities. Business owners have to govern inventory tightly be it the acquisition of product, stock movement into the marketplace and maintaining accuracy of stock counts at year end. The best way to do this is to have a solid warehouse management system and perform annual physical inventory counts.
When using a 3PL, the management and accuracy of stock is critical each day and month. Westset prides itself on having a solid warehouse management system which tracks all inventory. Westset Logistics, a leading 3PL based in Los Angeles, has a reputation for providing not only accurate inventory management on a cloud based platform but the resource to perform physical inventories for either mid-year or year-end financial fiscal requirements. “We encourage our clients to not only plan it with us but to review the data produced before and after the physical count, so it forms a fail safe process for both parties” says Luis Serrano, Warehouse Manager.
Physical inventories are not a one day process. Some take a week others perhaps a couple of days. “We are inviting clients to make contact with their dedicated WestsetAccount Representative(s) to ensure their physical inventory is booked in and planned for accordingly. Bookings are done based on a first come, first serve basis and we ideally prefer a 2 month heads up” continues Luis Serrano.
Westset has been known to produce 99% accuracy on all inventory management reports for all clients however, it is best practice to perform an annual physical count. For more information contact your account representative.