Inventory Management Hacks: How Focused Counts Save Time, Money & Boost Accuracy

We Pretend to Love All Our SKUs Equally… But Let’s Be Honest

We tell our kids we love them all the same, but deep down, there’s always that favorite kid—the one you’d stay up late with helping on their science project or cheering on at their school play. And let’s be real, the same thing happens in retail inventory management. 

Your stock may be important as a whole, but not every SKU deserves the same level of attention. And that’s okay—in fact, that’s smart inventory management. Let’s talk about how you can apply that “favorite kid” as a “focused counts” mindset to your stock counts to save time, money, and headaches. 

The Full-Count Fallacy: Why Counting Everything is a Waste 

Imagine spending hours counting every single item in your warehouse—whether it’s a fast-moving bestseller or a product that hasn’t moved off the shelf in six months. It’s like trying to parent every SKU equally. Not so smart, right? 

Here’s the kicker: only about 5-10% of your SKUs cause the vast majority of inventory discrepancies. Yet, most retailers still conduct full inventory counts, which can cost time and resources you could be spending elsewhere. 

This is where focused counts come in—a way to focus your attention (and your budget) on the stock that truly matters. 

Focused Counts: Treat Your Top SKUs Like Your Favorite Child 

Just like your favorite child, certain SKUs need more attention than others. With focused counts, you prioritize the items that are most likely to cause problems if they go unchecked. Here’s how you can spot your “favorite” SKUs: 

• Best-Sellers: These fast-moving products are the backbone of your revenue, and if you run out, your bottom line takes a hit. 

• Discrepancy-Prone Items: Some products have a history of always being “off” when you reconcile the system data with your actual stock. These are the troublemakers you need to keep an eye on. 

• High-Shrinkage SKUs: Items that tend to mysteriously disappear (whether due to theft or mismanagement) should always be on your radar. 

• High-Value Stock: These are the products that can significantly impact your finances if miscounted or misplaced—think luxury goods, electronics, or premium brands. 

The Benefits: Why Playing Favorites Actually Makes Sense 

Switching to focused counts isn’t just a time-saver—it’s an inventory game changer. Here’s why: 

1. Save Time & Money: By counting only the SKUs that need attention, you’ll spend 50-70% less time on inventory counts, freeing your team for other tasks. 
2. Less Disruption: Focused counts can be done during retail operating hours without closing your store or running after-hours shifts. 
3. Early Problem Detection: By counting the right items more frequently, you catch discrepancies before they snowball into major issues—helping you avoid stockouts, lost sales, and over-ordering. 
4. Optimize Your Stock Levels: Better stock accuracy means fewer costly overages or emergency restocks. You’ll have the right products, in the right quantities, at the right time. 

It’s Not One-Size-Fits-All: Tailor Your Focused Counts to Each Store 

Here’s something we all know but rarely talk about: what’s causing headaches in your Mall of the Emirates store might be totally different from what’s happening in your Mirdif City Centre location. 

That’s why smart retailers are treating each store like its own unique challenge. Maybe your downtown store needs to watch those premium handbags like a hawk, while your mall location needs to keep closer tabs on fast-moving cosmetics. 

With focused counts, you can adjust your counting strategy to each store’s individual needs. One location might need to prioritize high-theft items, while another needs to focus on fast-moving products. Treating each store as its own unique operation allows you to fine-tune your approach and optimize across your entire brand. 

Technology is Your Best Friend 

While Elon Musk is off making self-driving cars and reusable rockets, we’ve been hard at work on something a bit more down-to-earth but just as revolutionary for your inventory—our Dart Vader tool. 

Think of Dart Vader as the brain behind your cycle & focus counts. It helps you: 

• Identify High-Risk SKUs: By analyzing sales data, discrepancy history, and shrinkage patterns, Dart Vader knows which items to keep an eye on. 

• Track Count Progress in Real-Time: Whether you’re in the store, at the head office, or on a beach, you can check which stores are behind count schedule, check each counting status, team performance, progress, and reschedule very easily from your phone or tablet. 

• Manage the Team & Schedule Counts: Dart Vader makes it easy to schedule counts for high-risk SKUs, assign team members to specific tasks, and monitor results without needing to micromanage. 

Best of all, DartVader adapts to each store’s unique inventory challenges—giving you location-specific recommendations and insights to keep everything running smoothly. 

Implementing Focused Counts: How to Get Started 

Ready to put focused counts into action? Here’s how you can get started and make the most out of your inventory management: 

1. Leverage Your Data: Start by diving into your sales and inventory reports. Identify the top 20% of SKUs that generate 80% of your revenue, and look for patterns in discrepancies. Use this data to pinpoint the products that need your attention most. 
2. Prioritize Using A, A / B, B / C, C Ranking: This ranking system allows you to categorize your SKUs based on two important factors—quantity and value. 

• • First Letter: This represents the risk based on quantity. It’s about how frequently an item shows discrepancies or shrinkage. The higher the discrepancies, the closer to “A” it gets (A for high-risk, B for moderate-risk, C for low-risk). 

• • Second Letter: This represents the value of the item. High-cost or premium items (like electronics or luxury goods) get an “A,” while lower-value items (like low-cost, fast-moving goods) get a “C.” 

So, an item ranked A, A would be high in both risk and value—a critical product that needs regular counting. On the other hand, an A, C item may be frequently at risk but has a lower value, meaning it still needs attention but might not have the same urgency. The system helps you target not just what’s at risk, but also what’s worth the effort. 

1. Schedule Focused Counts Smartly: Now that you’ve ranked your items, create a cycle count schedule based on this data: 

• • A, A Items: High-risk, high-value items should be counted weekly. 

• • B, B Items: Moderate-risk items with moderate value can be counted bi-weekly. 

• • C, C Items: Low-risk, low-value items can be counted monthly or quarterly. 

Adjust the schedule based on your team’s capacity and store operations. The goal is to count frequently enough to catch discrepancies early, without overwhelming your team. 

1. Track Results and Optimize: Use a tool like Dart Vader to monitor discrepancies and shrinkage patterns. Analyze which SKUs consistently show issues and adjust your ranking and counting frequency accordingly. 

The Bottom Line: Count What Matters 

Retailers are under constant pressure to inventory optimize operations, reduce costs, and boost profitability. Full inventory counts are expensive, time-consuming, and frankly, outdated. By shifting to focused counts, you’re ensuring that your resources are spent where they make the most impact. 

Remember, you don’t need to count everything. Just count what matters.