～Understand how physical stocktaking helps retailers in Vietnam maintain the right inventory level, identify shrinkage and inventory overage, and strengthen day-to-day store management.～
Purpose of Stocktaking ②: Improving Inventory Management Accuracy
Another important purpose of stocktaking is to improve product and inventory management. In particular, understanding the actual quantity of stock on hand is directly connected to effective day-to-day store operations.
If inventory levels are too low, out-of-stock situations may occur, leading to missed sales opportunities and customer dissatisfaction. On the other hand, excessive inventory can result in slow-moving products, markdowns, disposal costs, and additional storage burdens, ultimately affecting profitability.
Maintaining the appropriate inventory level is not always straightforward. Retailers must consider various factors, including sales trends, order frequency, supplier lead times, available shelf space, promotional activities, and seasonal demand patterns.
For retailers in Vietnam, inventory planning can be particularly challenging due to fluctuations caused by Tet holiday demand, public holidays, tourism activity, back-to-school periods, seasonal campaigns, year-end promotions, and major shopping events. As modern retail formats such as convenience stores, supermarkets, specialty stores, and shopping malls continue to expand, maintaining high inventory accuracy has become increasingly important.
In recent years, many retailers have introduced automated ordering systems. These systems generate replenishment recommendations based on inventory records and sales forecasts. However, when system inventory does not match the actual stock available on-site, even sophisticated systems may produce inaccurate ordering recommendations.
To fully benefit from automation and digital inventory management, retailers must first ensure that their inventory data is reliable. This is why physical stocktaking remains an essential management practice, even in businesses that have adopted advanced inventory management technologies.
Stocktaking Helps Identify and Manage Inventory Loss
Stocktaking is also a critical tool for identifying shrinkage, or inventory loss caused by factors other than recorded sales or disposal. By comparing book inventory with actual inventory counted during a stocktake, retailers can identify discrepancies that would otherwise remain unnoticed.
Inventory loss can occur for a variety of reasons, including receiving errors, data entry mistakes, sales processing errors, employee misconduct, product damage, or external theft such as shoplifting. In many cases, these issues are not detected when they occur and only become visible during a physical inventory count.
There are also situations in which actual inventory exceeds the quantity recorded in the system. This condition is known as inventory overage, where the physical stock count is higher than the inventory recorded in company systems. Although this may appear positive at first glance, it can indicate operational errors, inaccurate inventory records, receiving discrepancies, or weaknesses in inventory control procedures.
Accurate stocktaking enables retailers to identify both inventory loss and inventory overage. By understanding the causes of these discrepancies, businesses can improve operational processes, strengthen internal controls, and enhance overall inventory management quality.
Stocktaking Is a “Report Card” for Store Operations
Stocktaking is far more than a simple counting exercise. It supports several important aspects of retail management, including profit determination during financial closing, inventory accuracy improvement, inventory loss management, fraud prevention, and optimal inventory control.
Through accurate physical stocktaking, retailers obtain reliable inventory data that can be used for daily inventory management, more accurate replenishment decisions, improved store operations, and stronger profit management.
Furthermore, accurate inventory data provides the foundation for digital inventory management initiatives and automated ordering systems. Without reliable inventory records, businesses may struggle to achieve the expected benefits of automation and data-driven decision-making.
In this sense, stocktaking can be viewed as a “report card” that reflects the effectiveness of inventory management and operational discipline within a store. Regular stocktaking helps retailers identify weaknesses, monitor improvements, and maintain operational standards over time.
For retailers in Vietnam’s increasingly competitive retail environment, improving stocktaking accuracy can contribute to better customer service, more efficient operations, stronger inventory control, and improved business performance.
For Companies Facing Challenges with Stocktaking
Many businesses continue to conduct stocktaking internally but face challenges such as heavy workloads, inconsistent counting quality, staff shortages, and disruption to normal store operations. Inventory count sheets and standardised procedures can help improve consistency. However, companies seeking greater accuracy and efficiency may find value in working with a specialised stocktaking partner.
AJIS supports retailers as a professional stocktaking service provider, covering the entire process from physical counting to data delivery and reporting. Drawing on extensive experience and specialised operational expertise, AJIS helps retailers improve inventory accuracy, strengthen inventory control, and support more efficient store operations.
For more information about our stocktaking services, please refer to the page below.
👉 Stocktaking service – AJIS Vietnam
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Editor: AJIS Group
AJIS Group is a global corporate group led by AJIS Co., Ltd., which has been a leading provider of stocktaking services and retail support services in Japan. The Group operates in the United States, China, Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Thailand, Vietnam, and the Philippines.
With a proven track record of working with more than 3,000 companies and supporting a cumulative total of over one million stores annually, AJIS Group helps address a wide range of challenges faced by the retail and distribution industries. Its services include stocktaking, store operations support, sales floor improvement, and promotional support.
