A stock count after a fire, flood or theft

The fire is out, the water pumped away or a theft discovered. The warehouse is a mess and everyone says, "let's clear up fast and get back to work". Yet this haste is what costs most later. If what survived and what was lost is not confirmed on paper, talking to the insurer, the accountant and management becomes hard. A count after an incident differs from an ordinary one: it must be quicker, more careful and better documented.

The first hours: safety first

People's safety comes first. Do not enter the warehouse until the responsible services allow it: electricity, gas, collapsed structures or harmful substances may be a danger. Then "freeze" the scene: do not remove, throw away or move damaged goods. Take wide photographs first, then close-ups and video, and note the date and time. Limit the list of people with access and inform management. If there is an insurance contract, it may set deadlines for notification, so contact the insurer right away.

The counting order: three categories

Once the area is safe, divide the warehouse into zones and sort the goods in each into three categories:

1. Intact: undamaged, usable or saleable.
2. Partly damaged: quantity and degree of damage described separately.
3. Lost or unusable: not altered for now, only recorded.

Each category sits in its own place under a marker of its own colour. When counting damaged goods, write the name, quantity, type of damage and the number of the photo file. For lost goods rely not on memory but on the last documents: the latest stock report, recent receipts and issues, and the bin location.

It helps to split the work into two stages. The first is a quick estimate, meaning approximate volume and condition by zone; it gives management and the insurer an initial picture. The second is a full line-by-line count, and this becomes the main document. State in writing that the quick estimate is not the final tally.

Even goods whose packaging looks intact may be damaged. Food and medicines that got wet or smoke-affected need a specialist's opinion before they are treated as usable; do not decide that yourself.

A hypothetical example

A small warehouse is flooded and held 12 pallets of goods. After the count: 3 pallets intact, 4 partly damaged (the packaging wet, the goods inside dry) and 5 unusable. Each pallet received a number, was photographed, and the responsible employee and date were recorded. A count documented this way is the basis for later talks. The figures are invented.

Documenting it

A count after an incident needs more paperwork than usual: every sheet dated and timed, the list of photos tied to the sheets, the committee clearly named. Where possible, the committee includes someone with no direct role in warehouse work. Keep the original photos and files unaltered, with any edited copy stored separately. Gather all correspondence and notes in one folder, an "incident folder". If the count runs beyond a day, total and sign each day's results every evening so that the next day does not start from scratch. Remember too that people are working tired and under strain, so plan shifts and breaks.

Insurance, write-off and inquiry

Which documents are needed after an incident, how an insurance claim is made, how goods are written off or an inquiry held depends on your situation, the insurance terms and the rules in force. Settle these questions beforehand with your insurer, accountant and lawyer. The price at which goods are valued, cost or market, is another such question. A count only gathers the evidence for such decisions: it does not decide who is to blame or what should be paid.

Common mistakes

• "clearing up": damaged goods are taken away unphotographed;
• damaged and intact goods get mixed;
• losses are written from memory rather than from documents;
• one person runs the count and signs it alone;
• photographs carry no date or exact location.

Conclusion

A count after an incident takes place under strain, so order and paperwork matter most there. As an independent outside contractor, Inventory helps count the warehouse quickly and hand over the result with documents; decisions on insurance, inquiry and write-off remain with your responsible people and specialists.