Outsourcing a stock count: how to write the brief

When handing a stock count to an outside team, many managers stop at "count everything". That is not a brief, it is a wish. The contractor has to guess: does third-party stock count, what about damaged goods, what about goods in transit? When the count ends, the report you expected and the report you get do not look alike. The only cure is a written brief. Here is what it should contain and where people usually go wrong.

Why a written brief matters

A precise brief does three things. First, proposals from several contractors can be compared on the same basis: everyone quotes the same volume and conditions. Second, fewer questions arise on count day because the main rules were agreed beforehand. Third, there is no argument at hand-over about something that "was not in our agreement". The brief does not have to be long: two or three pages are usually enough. It also helps in a dispute: the answer to "what did we agree" is on paper, not in someone's memory.

The main sections of the brief

In practice six blocks are enough:

• The site and the volume. Addresses, floor area, the approximate number of items, the type of storage (racking, open yard, cold room), racking height, access restrictions.
• Cut-off date and time window. The date and hour the balances are counted for, whether the count runs at night or in business hours, whether the warehouse stops work.
• Counting rules. The unit of count (piece, carton, pallet), whether batch and expiry date are recorded, how damaged and expired goods, third-party or consignment stock and goods in transit are treated.
• Format of the result. Columns for Excel or for loading into a system (code, name, quantity, location), the list of differences, an analysis section and the deadline for the report.
• Division of responsibility. The client supplies data, site access and one contact person; the contractor is responsible for the team, the equipment and the quality of the count.
• Acceptance criteria and confidentiality. How the result is checked (for example a sample recount), what happens when a difference appears, the access regime and non-disclosure.

How the brief is agreed

One person does not write the brief. It is usually prepared jointly by the warehouse manager (site and rules), the chief accountant (cut-off date and report format) and the security service (access regime). The draft goes to the contractor, who returns it with questions and risks. This two-way review is often the most useful stage: as a practitioner the contractor notices what escaped your eye, for instance working time in a cold room or the lift needed for tall racking. Both sides sign the agreed version, and it can be changed before the end of the count only by written agreement.

An illustrative example: a fragment of the brief

The fragment below is illustrative; adapt it to your own site: "Site: two warehouses, about 6,000 m² in total, about 15,000 items. Cut-off date: the last day of the month, 18:00. The count runs in the evening shift. Unit: piece; for goods with an expiry date the batch is recorded as well. Result: an Excel file with code, name, batch, location, book balance and counted balance, difference; within 3 working days after the cut-off date." These four or five lines settle both the contractor's price and the deadline.

Typical mistakes

• Writing "count everything". It stays unclear whether third-party stock, rejects and goods in transit are included.
• Leaving out the cut-off date. If the warehouse keeps working during the count, the balance drifts and the result cannot be compared with the books.
• Naming the report format last. The contractor collects data one way, and then time goes on reworking it.
• Not stating responsibilities. Who hands over the keys, who answers questions, who opens packaging: write it down in advance.
• Conflict with the contract. The brief should be an annex to the contract, and their terms should match; check with a lawyer if needed.

Conclusion

A good brief is the cheapest insurance a client can buy when working with an outside team. If it contains the site, the cut-off date, the counting rules, the report format and the line of responsibility, the contractor can do the rest. After a request, the Inventory team assesses the site, sets the number of items, the scope of work and the timeline, and then records the price, deadlines and confidentiality terms in the contract; the brief can be written together at this same stage.