4 Steps to Create a Stock Opname Report

Inventory is the largest asset for any retail business.

If you have inaccurate stock counts, products that have been sitting on shelves for months, or underperforming vendors, your business is losing money.

A solid inventory report can help you address all of that. 

Inventory reports help improve stock accuracy, fulfill demand more effectively, and reduce stockouts — the perfect combination for maintaining customer satisfaction and loyalty.

To improve inventory management in your store, this guide covers the various types of inventory reports you can generate, as well as how to create and use your own reports.

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What Is a Stock Opname Report?

A stock opname report is an organized summary of the quantity of stock you have on hand at any given point in time. 

It can be either a digital or physical report, and displays details including the number of products currently available for sale, inventory in transit, and inventory you still need.

A good stock opname report contains up-to-date information at a high level of detail and uses visualizations to explain how many items you have in stock. It helps you avoid over-ordering or running out of stock when customers purchase your products online.

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The Importance of Stock Opname Reporting

1. Inventory tracking

2. Inventory categorization

3. Improved forecasting

4. Enhanced customer service

Inventory reporting serves a wide range of purposes that directly impact your business. 

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Let's take a closer look at each area.

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Stock Tracking

Inconsistent stock tracking leads to duplicate product processing and inventory loss. With an effective inventory reporting system, you can track product locations throughout your retail supply chain — from the warehouse to the shelves in your store.

Tracking stock also helps you:

• Maintain up-to-date stock levels
• Improve inventory accuracy
• Understand inventory valuation and holding costs
• Avoid stockouts

With these reports, you can also detect errors more quickly and protect profitability.

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Inventory Categorization

There are two popular methods retailers use to categorize goods: ABC analysis and categorization by location or type. Regardless of the method you use, stock reports are essential for organizing your inventory.

Reports provide real-time information on where inventory sits in the supply chain — from raw materials to ready-for-sale products. Knowing where products are helps you understand the cost of goods sold at each stage. It also helps you optimize inventory management and meet future customer demand.

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Improved Forecasting

In inventory forecasting — also called demand planning — historical data and trends are used to predict future inventory needs. With stock reports in place, you can strategically manage stock items, avoid overstocking, and ensure you have enough inventory to fulfill customer orders.

Too little stock, and you risk losing customers who are ready to spend money with you. Too much stock, and your warehouse becomes cluttered, storage costs rise, and your customers end up bearing the burden.

A well-constructed stock report helps you navigate demand fluctuations and maintain the right quantity of inventory in your store.

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Enhanced Customer Service

Having sufficient inventory not only benefits a retailer's bottom line — it also improves customer satisfaction and loyalty.

Imagine walking into a store intending to buy a specific item, only to find it's out of stock. Running out of inventory is a frustrating experience for customers. As many as 37% of consumers who encounter a stockout will shop with a competing brand, and 9% won't purchase anything at all.

Accurate stock reports tell you exactly when to reorder, so you can keep more products on shelves and keep customers happy.

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Read: How Supply Chain Management Works for Companies

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Types of Stock Opname Reports

• Inventory on hand
• Shrinkage
• Inventory performance
• Inventory valuation
• Cost of goods sold
• Stock reorders

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Inventory on Hand

An inventory on hand report shows the exact quantity of available stock and its value. It indicates how much capital is tied up in inventory, enabling better forecasting, reordering, and budget planning for the future.

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Shrinkage

Shrinkage is the term used to describe a situation where your store has fewer items in stock than recorded. The 2020 Retail Security Survey found that shrinkage accounts for 1.62% of retail net sales, costing $61.7 billion annually. Shrinkage reports monitor shrinkage rates over time to identify whether there are significant issues that need to be addressed.

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Inventory Performance

An inventory performance report provides specific insights about your product sales, such as:

• Best-selling products
• Worst-performing products
• Top year-over-year growth

You can use this information to plan raw material orders or stock replenishment. If a high-demand product sells quickly, you can order more.

Inventory performance reports also reveal sales trends. If you notice that a particular item hasn't sold in a long time, for example, you can investigate further to understand why.

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Inventory Valuation

Your warehouse is filled with products waiting to be sold. These items are stock you've purchased using money and resources, and as part of your inventory, they carry value. An inventory valuation report reflects the total cost of your inventory and the potential profit per sale.

With this report, you can:

• Set revenue targets
• Save on taxes
• Secure small business financing

The goal is to provide a clear picture of your business's financial position and profitability. Estimating inventory costs may seem complex, but there are methods you can use to value your inventory and maintain accurate financial records.

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Cost of Goods Sold

A business's Cost of Goods Sold (COGS) is the direct cost of producing the products it sells. It is also referred to as "cost of sales" or a "COGS report," as it includes material and labor costs directly associated with producing retail products.

A COGS report provides insights that help you:

• Set the best prices for your products
• Manage quarterly taxes
• Identify growth opportunities

Overall, knowing your COGS helps paint a clear picture of your business's financial health and can assist you in optimizing inventory management.

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Stock Reorders

A stock reorder report displays all product variants that are at or have reached their reorder point. It includes a list of all existing products, pending purchase orders, sales orders, and the reorder level of each variant. Based on current stock quantities and incoming shipments, you can determine how much stock needs to be reordered.

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How to Create a Stock Opname Report

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• Create an inventory list
• Determine the timeframe
• Choose the type of report to run
• Run the inventory report

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Create an Inventory List

Start by recording each inventory item in a single vertical column. Export this inventory data from your POS system or inventory management system. The data will contain the information you need, such as:

• Available stock
• Stock location
• Available variants
• SKU numbers
• Price
• Unit quantities
• Write an inventory description

Allocate space for a description of each product in a separate column. This way, you can track differences between inventory items. If you want to highlight a product's unique characteristics, for example, you can add more detail. You can also note if an item is damaged or missing.

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Include Inventory Pricing

Each item should have a price so you can easily determine the value of your inventory. In some businesses, you may track purchase or production costs separately from the selling price.

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Determine the Timeframe

Make sure you pull all data from the same time range. You can view inventory report metrics on a quarterly or daily basis. When comparing periods, pay attention to seasonal shopping trends. If you compare April figures with November figures, for example, you'll notice a significant difference due to the holiday season.

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Choose the Report to Run

Once you have your data and date range, choose the report you want to run. Select a report that can answer the questions you're looking to address.

For example, an inventory performance report can help you understand changes among your best- and worst-performing products. A shrinkage report can help uncover changes in inventory loss. Your POS system will also offer standard inventory reports you can use to begin your analysis.

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Run Your Report

Finally, run the numbers and conduct your analysis. Look for both positive and negative inventory and sales trends in your reports. For example, if you see that a new product is selling quickly, you'll want to set a higher reorder point than you would for a slower-moving product.

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Read: The Difference Between a Warehouse and Logistics Warehousing

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How Often Do You Need a Stock Opname Report?

Reporting frequency depends on your needs. If you run a high-volume store, it's best to run reports more often since your numbers change regularly.

In any case, making inventory reporting a habit is important for retailers of all sizes. Some common periods for running inventory reports include:

• Weekly and monthly. It's easy to pull weekly and monthly reports from your POS system and inventory management software. Weekly and monthly reports can provide a routine overview of your inventory health, set inventory thresholds to meet demand, and even inform your marketing team about the results of promotions.
• Before and after peak seasons. Real-time sales reports are highly valuable for retailers. However, understanding growth from one period to the next is critical for maximizing sales. For example, you may want to run an inventory report comparing BFCM (Black Friday Cyber Monday) 2020 with BFCM 2021. You can also run reports during other peak seasons such as back-to-school shopping or Valentine's Day.
• Based on your operations. For stores with high daily or hourly order volumes, more frequent reporting will be needed to inform purchasing decisions. The goal is to find the right balance for your store to maintain customer satisfaction and profitability.

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Managing Inventory Reporting in Your Store

There's no question that inventory reports are essential to the success of any retail or e-commerce store. Small stores with low volume may be able to rely on manual inventory reporting — monitoring stock levels and updating data regularly in an Excel spreadsheet to maintain accuracy.

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