Field Notes

Inventory cutoff errors that appear again each March in Chiba warehouses

Warehouse staff marking inventory during a physical count

March year-ends in manufacturing belts around Chiba often collide with supplier delivery rushes. Goods that arrive after the count but before the books close are frequently booked into inventory without a matching liability.

Consignment stock belonging to suppliers sometimes remains on the floor without clear tags. Count teams include it; the perpetual system does not; the variance then looks like theft or shrinkage.

Customer returns sitting in quarantine areas are counted twice when both warehouse and quality teams maintain separate sheets. A single designated count captain and color-coded tags reduce that duplication.

We recommend a cutoff binder: last five receiving reports before count, first five after, and the corresponding purchase invoices. Bring it to the observation day; it shortens our follow-up questions considerably.

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