Putting count teams together: independence and segregation of duties

The warehouse manager knows every rack, every pallet and every item. That is exactly why he or she should not count the stock alone. Whoever manages the goods has a natural interest in the stock being right, and when counting quickly sees what he or she expects. Segregation of duties does not mean mistrust; it means that whoever keeps the stock does not check it alone. This article shows how to put independent count teams together without bringing operations to a halt.

Which roles should be separated

• Managing the stock: warehouse management and warehouse staff.
• Posting: accounting and inventory management.
• Counting: a team independent of them.
• Approving: controlling or management.

The more of these roles lie with one person, the less the count result says about the stock. In small companies strict separation cannot always be achieved. Additional controls then make up for it, such as a second count by outsiders or approval by head office.

A simple table helps: the tasks in the rows, the people involved in the columns and a cross wherever someone takes on a task. If one person has a cross both at "managing the stock" and at "counting", segregation of duties is breached, and the gap becomes visible before the count begins.

Mixing the teams properly

A mix from three sources has proved its worth:

• employees from accounting, administration or sales who do not manage the stock,
• colleagues from another site or another hall who count in a warehouse that is not their own ("area swap"),
• external teams, especially for valuable areas or areas prone to shrinkage.

The warehouse staff stay involved, but in a different role: they open up areas, explain units and bins, help with language questions and handle the ongoing dispatch. In their own area, counting is done by others.

Pay attention to the size of the teams. Two people per team is the rule: one counts and calls out the quantity, the other writes it down and checks. Swap roles every hour so that attention is maintained.

A staffing example (illustrative)

A warehouse has 4,000 count positions. A team of two manages 40 positions an hour. With first and second count, 8,000 positions have to be counted, which is 8,000 ÷ 40 = 200 team hours. Ten teams deliver 80 team hours in an eight-hour shift. So 2.5 shifts are needed (200 ÷ 80), three in practice.

The ten teams are staffed like this: six from accounting and administration, two from another site, two external (6 + 2 + 2 = 10). That is 20 people, very few of whom work in the warehouse concerned. The warehouse staff remain free for dispatch and for providing information.

Ensuring independence

• Cross-assignment: the team that does the first count of a zone never does the second count there.
• Conflicts of interest: anyone with a personal stake in the result, for example through bonuses for stock accuracy, does not count in the area concerned. The same applies to superiors of the warehouse and close relatives of the warehouse staff.
• Briefing: a short training session before the count explains the count sheet, units, correction rule and procedure. Expert knowledge is not needed, because the count is blind and the warehouse explains the units.
• Evidence: the team list with names, function and assigned zone belongs in the record.

Not bringing operations to a halt

Independent counters do not mean that dispatch stops. Plan zone by zone: areas that are being counted are cordoned off, the rest of the operation carries on. The warehouse staff accompany the teams only where information is needed. Go through the division of roles with the warehouse management beforehand so that nobody feels bypassed. People who know that they are not under suspicion but needed as a point of contact are glad to help.

In short

Good count teams are independent, trained and documented. AuditMaster deploys count teams that do not manage the stock, has a second team count independently, and records teams and assigned zones in the inventory record.