Recounts: when they are needed

At an electrical goods warehouse the revision showed a shortage of 108 LED lamps: 480 on the books, 372 on the shelves. The warehouse manager was worried, because it is not a small sum. But before writing it off or looking for someone to blame, he asked a simple question: "Shall we recount?" A recount tests the result of the first count and often removes most of the difference within an hour. The question is which differences to recount and which to leave.

When a recount is needed

You do not have to recount every difference; it costs time and money. Write the rule down before counting begins. A recount is usually called for when:

• the difference exceeds a set threshold (in so'm or as a percentage of the booked quantity);
• an unexpected shortage appears on a slow-moving item;
• the gap is a whole number of packs, such as full boxes or a pallet;
• the counter himself was unsure, or the sheet has many corrections;
• the person responsible for the stock disputes the result;
• the goods are expensive or in a fast-selling group.

The blind count rule

Whoever recounts should know neither the first result nor the book balance. Otherwise they will unconsciously look for the "right" number. The sheet carries the item name and location, with the quantity column left empty. If you can, change the method: if the first count was by hand, count the second time by pallet or by weighing. Tag the disputed item and do not move it until counting ends.

The person who recounts should not be the first counter and, ideally, comes from another team. One person's habit, such as skipping the top shelf every time, will repeat on the second pass and hide the error.

An example: where 108 lamps went

The lamps sit in boxes of 12. Divide 108 by 12 and you get exactly 9 boxes. A gap equal to a whole number of boxes often points to a single mistake: a counter skipped a shelf or a pallet (or counted it twice). With that guess, a blind recount was done, and the nine boxes turned up on a top shelf behind a pillar: the first sheet had no such shelf at all. The balance came to 480 and matched the books. The lesson was written down too: a list of racks went onto the count sheet so none drops out of the route, and each rack is closed with the counter's signature.

The recount took two people one hour. At 18,000 so'm a lamp, the "shortage" would have been 108 × 18,000 = 1,944,000 so'm, and chasing it, collecting explanations and writing it off would have taken days.

How the result is accepted

1. If two counts agree, that figure is final.
2. If they disagree, a committee member counts a third time with both sides present. If the result matches either of the first two, that figure is final.
3. Never take the average of two numbers: it produces a third figure that matches nothing real.
4. Keep every result on the count sheet: the first, second and third figures, with who counted and when. Do not erase the old one; strike it through with a single line and write the new one.
5. Do not count one item endlessly: three times is usually enough. If a difference remains after three, the cause is in the documents or the process.

When a recount is not needed

If the value of the difference is smaller than the cost of recounting and a document explains it (a late issue document, say), correcting the document is enough. Agree the threshold in advance, for example: differences under two hundred thousand so'm that a document explains are not recounted. That figure is only an illustration; set your own with management. But if a small difference recurs on the same item revision after revision, do not count it again: look for the cause, because it signals a systemic error.

Conclusion

A recount is not an accusation but a way of checking: it catches a counting error before it travels into the documents. A clear threshold, a blind count and a record of every result make it reliable. The Reviziya team can help you set the thresholds and the recount procedure for your warehouse.