Stocktaking—often referred to as physical inventory—is the structured process of physically verifying the quantity and condition of goods held by a business at a specific point in time. In Germany, this process is known as "Inventur" and is a legal requirement for every merchant at the end of the financial year, ensuring that recorded stock levels are correct and match the actual goods on hand. In Switzerland, companies subject to accounting obligations must also carry out a physical stock count at least once a year or provide documented proof of accurate stock levels in line with principles such as completeness and prudence. In many other countries, including those following IFRS, physical inventory may not be a strict legal requirement. Still, accurate and up-to-date stock counting remains essential for financial reporting, operational efficiency, and avoiding shrinkage. Even in markets without mandatory physical inventory, companies use stocktaking as a crucial control measure to maintain transparency and improve supply chain performance.

The common challenges of stock counting

While stocktaking is vital for operational accuracy, it often presents significant challenges in preparation, execution, and post-processing. Preparing for a physical inventory requires detailed planning, the allocation of staff, and consistent communication—often in multiple languages for international businesses. When companies still depend on manual counting sheets and spreadsheets, this coordination becomes cumbersome and error-prone. During the stock counting itself, manual methods are slow and leave ample room for mistakes: products may be counted twice or missed entirely, numbers may be recorded incorrectly, and fatigue during long counting shifts reduces accuracy. After the process, stock count results are frequently stored in fragmented ways—some on paper, others in scattered digital files—making it difficult to create a central, reliable record. For companies operating across borders, differences in data formats, languages, and counting methods can lead to further confusion and inconsistent results.

The fashion retailer’s outdated physical inventory

Consider a long-established fashion retailer with a central distribution warehouse in Switzerland and stores in France, Italy, and Spain. The leadership team, experienced but accustomed to traditional workflows, relied on the same physical inventory methods for years. Once annually, normal operations stopped, and large teams were reassigned from their day-to-day roles to perform manual stocktaking. Staff recorded figures in Excel spreadsheets, often working into the night, and these figures were later manually entered into the ERP system. The approach consumed excessive time and money, and mistakes were common—double counts, missed counts, and significant discrepancies were frequent occurrences. Stock data was stored inconsistently: some in binders, some in local files, rarely centralized, and often never reviewed again. With a multilingual workforce spread over multiple countries, miscommunication during stock counting further increased the risk of inaccurate results.

How COSYS stocktaking software changed the game

The decision to modernize came when the retailer introduced COSYS’s multilingual stocktaking software. From the very first physical inventory using the system, the transformation was clear. Instead of paper-based counts and manual Excel input, all stock counting was performed digitally with handheld barcode scanners, making the process faster, more precise, and intuitive, even for staff with little technical experience. Master data was imported directly from the ERP system, removing the need for manual data entry. The software’s multi-tenant capability enabled the central warehouse and each store to work independently during the count while still ensuring all results were integrated into a single central database. Useful features such as automatic amount-1 counting, location tagging, and position tracking created a standardized process across all locations. All collected data flowed instantly into the COSYS backend, where it was securely stored and easily accessible. Discrepancies appeared immediately in a variance view, allowing managers to decide on the spot whether a second or third count was necessary.

Unlocking insights from physical inventory with COSYS Business Intelligence

Beyond improving counting speed and accuracy, COSYS’s WebDesk with integrated Business Intelligence gave the retailer the power to analyze its physical inventory data in depth. It became easy to identify which store or warehouse had the highest variance compared to the previous year, see which product categories regularly showed discrepancies, measure how long each branch took to complete stocktaking compared to previous counts, and pinpoint specific storage zones that frequently required recounts. This data-driven approach provided actionable insights, enabling the company to address recurring issues, improve workflows, and reduce future discrepancies.

Ensuring device security and control with COSYS Mobile Device Management

To complete the solution, the retailer implemented COSYS Mobile Device Management (MDM) for its stocktaking devices. This system allowed IT teams to manage all handheld scanners and mobile devices remotely, applying security policies, restricting access to specific applications, and deploying software updates centrally. For a business operating in multiple countries and languages, this ensured consistent configuration, reduced downtime, and maintained compliance without the need for on-site technical support in every location.

Conclusion

Even in countries where physical inventory is not legally mandated, structured and digitized stocktaking delivers immense value. For this fashion retailer, replacing outdated manual methods with COSYS’s multilingual stock counting solution transformed a time-consuming annual disruption into a streamlined, insight-rich process. The company now benefits from faster and more accurate counts, seamless ERP integration, centralized and reliable stock records, immediate variance detection, and detailed business intelligence—all supported by secure, centrally managed devices. COSYS turned stocktaking from a costly necessity into a strategic advantage, proving that physical inventory, when done right, can save time, reduce costs, and enhance operational decision-making.