Kanban inventory count made easy

The inventory count, or physical inventory, is the process of systematically recording all physical assets within a company at a specific time. The reasons why companies implement inventory counts are the following:

1. Quantify company assets, i.e. accurately determinate the quantities of materials, finished products, semi-finished goods, components, etc., present in the company.
2. Evaluate the economic value of assets, providing key data for corporate accounting activities like balance sheets and cost analysis.
3. Monitor stock levels, identifying surpluses, shortages, obsolescence, or damaged materials.
4. Verify alignment between physical stock and accounting records – ensuring data in management systems reflect the actual situation and making corrections as needed.

In order to achieve these goals, inventorying is an activity that is carry out periodically, especially during specific times such as the end of the fiscal year.

Common challenges in inventory counting

Although crucial for inventory control and accounting compliance, inventory counting often faces operational and management issues.

The main challenges are related to human errors, including double-counting items, failing to record others, or transcription mistakes. Handwritten notes can lead to confusion (e.g., is it an 8 or a 3? Does it say code X or Y? Did the operator who filled the form make any mistakes?). These issues often stem from inadequate training or a lack of attention to detail.

In addition, error probabilities increase as the variety and volume of items grow, leading to unnecessary reorders or unidentified shortages.

The main cause of these problems lies in the use of outdated manual systems, which fail to guarantee inventory count accuracy. Such systems are also inefficient, requiring extensive time and pulling trained staff away from their operational duties.

How KanbanBOX simplifies inventory counting

KanbanBOX, e-kanban (electronic kanban) software for lean material management, streamlines the inventory counting process making it faster and more practical.

This is possible because, in an e-kanban system, each kanban card is:

• Unique, with a distinct barcode and ID, even for cards related to the same item.
• Digitally tracked, enabling users to access all relevant details, including creation date, status updates, and more.
• Available both physically and digitally, viewable on the software’s virtual kanban board, which shows all kanban cards in the company.

Performing inventory count with KanbanBOX

Using the dedicated “Inventory” module, the designated staff can simply scan the barcodes of kanban cards in the warehouse and declare the quantities present.
This process is significantly faster than manual counting and does not require advanced training.

If an operator scans the same kanban card multiple times by mistake, the software flags the error and counts the material only once.

The inventory count can be performed using:

• The web interface, by manually entering the card ID into the designated section.
• Scanning devices, such as scanners guns and handheld devices.
• The KanbanBOX app, using a smartphone camera to scan the barcodes.

At the end of the inventory count, the user will have access to two reports. The first one is the list of all inventoried kanban cards. The second one is the list of all kanban cards on the virtual board that were not scanned. This last report allows operators to quickly identify any missed items.

Additional KanbanBOX Features

The “Inventory” feature is just one of many advanced functionalities offered by KanbanBOX. Thanks to the digital kanban card tracking, the software also provides suggestions about:

• Optimal kanban card dimensioning
• Machine sequences scheduling
• Ideal delivery sequences for both internal and external suppliers
• Demand leveling

For more information on KanbanBOX features, including inventory counting, contact our experts. We’ll help you identify the functionalities best suited to your needs!