What happens during an inventory observation

Inventory observation is not a surprise inspection. It is a planned day when your count teams execute procedures and the auditors watch, test, and document.

Before count day

Freeze receiving and shipping windows if possible. Print count tags or sheet packs with clear bin locations. Brief temporary counters on how to handle damaged cartons and mixed SKUs.

While we are on the floor

We select locations after your teams have counted — sometimes before sheets are turned in — and recount independently. Large variances trigger expanded samples. Photographing sealed pallets or high-value cages is common when those items matter to materiality.

After the floor work

Differences between perpetual records and counted quantities feed into your adjustment process. Have someone ready to investigate variances the same week; stale unexplained differences delay the opinion.