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5 Daily Inventory Procedures Jewelers Should Consistently Practice

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You know the importance of taking your annual physical inventory in order to keep track of your stock levels and track any missing or misplaced items, but what effective jewelry inventory management practices do you employ for the other 364 days of the year?

At the end of a busy day, do you ever check your stock, or do you simply pack it up, lock it up, and then head home?

5 Inventory Procedures All Jewelers Should Practice Daily

While it may seem time consuming, performing daily inventory procedures — even something as simple as a case count  is an important part of detecting and preventing internal theft as well as identifying any items than may have gone missing as the result of a sneak theft.

Begin with an inventory system

A computerized point-of-sale system can simplify your records and make checking your cases easy.

If you don’t have a computerized system, create your own tracking system by assigning a unique inventory number — otherwise known as a SKU (stock keeping unit) — to each piece of merchandise. For example, if you have two identical watches, they should have different tracking numbers.

Assign categories

Figure out a number, letter, or letter/number sequence that lets you divide your inventory into categories. Using this code system, a gold chain could be CH100; a wedding ring could be WR100.

Cross-check

As for any business, an essential part of inventory record keeping is to compare these inventory lists against actual merchandise on display. Each item in a showcase or show window should be identified by its “Display Location” in your inventory system, so that a case-by-case listing of inventory can be generated on demand.

Conduct random case counts

During slow times of the day, random case counts can be conducted by printing the inventory sheet for the specific cases to be counted. Pay special attention to high-end watches, loose diamonds, and bridal or diamond jewelry. Make sure you address any discrepancies in the case counts as soon as possible.

Implement checks and balances

Have a manager or key employee print the inventory list. That individual, along with another employee, should count the case to ensure that the numbers match. This will enhance your staff members’ understanding that merchandise must be accounted for at all times and reduce opportunities for internal theft.

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About Jewelers Mutual Group

Jewelers Mutual was founded in 1913 by a group of Wisconsin jewelers to meet their unique insurance needs. Later, consumers began putting their trust in Jewelers Mutual to protect their jewelry and the special memories each piece holds. Today, Jewelers Mutual continues to support and move the industry forward by listening to jewelers and consumers and offering products and services to meet their evolving needs. Beyond insurance, Jewelers Mutual’s powerful suite of innovative solutions and digital technology offerings help jewelers strengthen and grow their businesses, mitigate risk, and bring them closer to their customers. The Group insurers’ strong financial position is reflected in their 38 consecutive “A+ Superior” ratings from AM Best Company, as of November 2024. Policyholders of the Group insurers are members of Jewelers Mutual Holding Company. Jewelers Mutual is headquartered in Neenah, Wisconsin, with other Group offices in Dallas, Texas, Miami, Florida and Raleigh, North Carolina. To learn more, visit JewelersMutual.com.