Inventory Counting Solution

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• Inventory counting firms deploy teams of “counters” to conduct manual reconciliations of a store’s “floor” inventory with their “book” inventory
• Services all segments of the retail industry
• Service is mandated by Sarbanes Oxley (Section 404)

Over the last several years, the inventory accounting (IA) industry has faced increasing pressure to remain competitive in what looks to be a shrinking market. Intense competition for resources as well as an ever-increasing consumer shift, from brick-and-mortar stores, to online marketplaces, continues to drive profit margins ever thinner.

In response, industry leaders have looked to scanning devices (guns) with faster processors and more incentive based compensation structures. These initiatives have indeed shown marginal improvements, though nothing has allowed anyone to separate from the pack. Further, the problem only worsens as margins continue to thin. Companies are forced to hire less experienced / less expensive counters, making it increasingly difficult to manage events to profitability.

Unfortunately, these pressures are unavoidable realities of the modern world. All industries face similar challenges. The companies who survive, and indeed thrive, despite their hurdles, are the ones who dare to adapt. They are willing to lead the way in shaping the evolution of their industry, thereby ensuring they will continue to play a vital role in that new world order.

In order to address the issues posed by this evolving marketplace, it is necessary to examine some of the industry practices that are exacerbating the impacts of those challenges.

Limited Capacity of Human Resources

• Low skilled (provide details)
• High turnover (provide details)

• Efficiency drops between tags
• Difficulty managing teams in larger areas

• Legacy design - form-function limits human capabilities (expand on the following ideas – hand-operated machines = “one hand tied behind their back”; even the most progressive models vary little from those used decades ago, awkward, bulky, heavy)
• High Total Cost of Ownership - in spite of their aging circuitry and inefficient form-factor, legacy handheld devices can cost more than $1,000/unit.  Additionally, studies have shown that, due to their form-factor, they are inherently prone to drops, and therefore, have a replenish rate of about >10% annually.