Stock variances refer to the difference between the actual stock of goods captured during the inventory and the stock recorded in the accounts or inventory management system. These differences can have various causes and are a serious problem for any business, especially for pharmacies. Inventory discrepancies are often caused by errors during stock taking, such as inaccurate counting, incorrect entries or the omission of articles. Incorrect bookings or transmission errors when entering stock data into the system can also lead to discrepancies.

Another problem is the theft or misappropriation of goods, which is difficult to trace in many cases, especially with larger inventories. Damage or expiration dates can also lead to discrepancies if products are not properly sorted out or not correctly recorded in the inventory records.

In addition, organizational problems such as unclear work processes, lack of staff training or frequent changes in the warehouse structure can also lead to a higher error rate. Especially in hectic phases such as the annual stock take, these factors can significantly affect the accuracy of stocktaking. In many cases, inventory discrepancies are only detected late, which can lead to financial losses and organizational difficulties. They therefore require careful analysis and preventative measures to identify the causes and minimize future differences.

Consequences for your business for having stock variances

Even small inventory discrepancies can have far-reaching consequences that not only affect a company’s financial results, but also cause legal and organizational problems. First of all, inventory discrepancies can lead to underestimated or overestimated stocks, which in turn has a negative impact on liquidity and the flow of goods. Incorrect stock taking can lead to not enough goods being available for customers or, in the worst case, expired or no longer required products being kept in the system.

Internally, every inventory difference means additional work: additional resources are required to identify, analyze and resolve differences. This leads to a loss of time and higher operating costs, which can have a negative impact on profitability in the long term. Particularly in large companies, where numerous inventory movements take place every day, these differences can quickly add up and have a significant impact on operational efficiency.

How to analyze and avoid stock variances with stock taking software by COSYS

A sustainable and long-term reduction of inventory discrepancies to a minimum requires a structured organization as well as precise processes for counting and managing inventory data. The key to the success of any stock taking process therefore lies in the effective implementation of stock taking. It is crucial that staff are comprehensively trained and well prepared before the stock take. This includes not only the provision of functional hardware and software, but also targeted instruction in the typical work processes of an inventory. An error-free and complete recording of stocks and articles can only be reliably guaranteed if the interaction between inventory scanners, software and human operators functions smoothly. This is exactly where the COSYS inventory software comes into its own. The software is compatible with most modern mobile computers. In addition, the COSYS Scan Engine in the stock taking app enables conventional smartphones and tablets to be transformed into fully-fledged inventory scanners. A variety of additional functions, such as counting individual quantities, articles and count place lists and the capturing of articles requiring batch and serial numbers, make stock taking much easier and more accurate.

Once the inventory has been completed and the data transferred to the backend, the recorded inventory data can be checked for inventory discrepancies using COSYS Business Intelligence. In the COSYS WebDesk dashboard, quantity variances per item are displayed in a clear list, both as a percentage and on a piece basis, so that they can be specifically checked as part of a recount.

Conclusion

Inventory variances pose serious financial and operational risks for businesses of all sizes, especially in highly regulated sectors like pharmacies. Preventing and managing stock variances requires more than just careful manual counting—it demands a structured approach, reliable tools, and trained personnel. COSYS stock taking software offers a powerful solution by combining intuitive mobile apps, robust backend analysis, and flexible hardware options. With real-time visibility into inventory data, smart error detection, and comprehensive reporting, COSYS not only minimizes stock variances but also enhances overall inventory accuracy and operational efficiency. By investing in the right technology and processes, businesses can safeguard their assets, maintain customer satisfaction, and strengthen their long-term profitability.