Warehouse Stocktake & ERP Cataloguing

Business Background

A gold mining operation required a full end-of-financial-year stocktake of their central warehouse. The primary objective was to validate all inventory held onsite and reconcile data in the Pronto ERP system. This initiative was driven by a need to reduce reported inventory value for financial savings and to improve data accuracy across systems.

The impact of inaccurate stock records had become increasingly visible, leading to inflated inventory values, audit risks, and inefficiencies in procurement and maintenance operations. Conducting a comprehensive stocktake aimed to address these issues and support more accurate financial reporting.

Challenges

• Disorganised Inventory Locations: Many items were not stored in their assigned bin locations, requiring additional time to locate and validate.

• Manual Processes: The stocktake relied on printed count sheets and manual data entry, increasing the risk of human error and delaying reconciliations.

• Incomplete Data: Count sheets did not include current stock-on-hand (SOH) values, limiting the ability to compare during initial counts.

• Time and Resource Constraints: Although six counters were allocated, an additional 3–4 people were required to meet project deadlines.

• Discrepancy Resolution: The need for a multi-stage review process (counters, senior reviewer, warehouse supervisor) added complexity but was essential to ensure accuracy.

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Implementation Steps

Planning & Scoping

Conducted an on-site assessment to understand current stocktake processes, identify key warehouse areas, and prepare count sheets using ERP data. Photos and layout mapping helped the team visualise challenges and plan efficient coverage.

Team Alignment & Preparation

Held workshops with site personnel to align on methodology, assign roles, and prepare resources. Additional local support was secured to ensure sufficient coverage and build ownership.

Execution & Counting

Conducted an on-site assessment to understand current stocktake processes, identify key warehouse areas, and prepare count sheets using ERP data. Photos and layout mapping helped the team visualise challenges and plan efficient coverage. Deployed stocktake teams to conduct physical counts across all warehouse areas. Priority was given to high-volume zones with small items, and all variances were flagged for review.

Reconciliation & System Update

Reviewed all discrepancies, validated them with senior staff, and updated Pronto with accurate stock levels. Findings were also used to trigger a review of capital spares and obsolete inventory for long-term improvements.

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Overcoming Obstacles

The stocktake faced challenges including inaccurate bin locations, missing stock-on-hand data, time and resource constraints, and reliance on manual processes. To overcome these, the team regrouped and conducted secondary checks for misplaced items, implemented post-count cross-checks, engaged extra personnel to meet deadlines, and introduced structured workflows with layered reviews to minimise errors.

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Results & Success Metrics

16,991 Total Items Counted: warehouse inventory items physically verified and recorded.

Stocktake Variance Identified: $1.62 million adjustment, reflecting reduced and corrected inventory value in the ERP.

Inventory Reclassification Opportunity: Identified $9.5 million in high-value items, with $2.7 million immediately reclassified as capital spares.

On-Time Delivery: Project completed within the planned timeline, aligning with financial year-end deadlines.

Data Accuracy Improvement: All discrepancies reviewed and validated through a three-level check process, improving ERP reliability and audit readiness.

Client Feedback: “Counting 16,991 items is a huge achievement — well done and thank you! Your hard work and commitment make a real difference.”