Inventory: Knowing Exactly What You Have
How many units of your best-selling item do you have right now, exactly? Go to the shelf and count. The gap between that and your recorded number is what this book is about — and it is a discipline problem, not a software one.
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01 — Overview
Overview
People buy an inventory system and discover two months later that its numbers do not match the shelf — exactly as the notebook did. Because the number was not going wrong in the notebook; it was going wrong at the door: goods that came in unrecorded, others that left with no document, a unit broken and thrown away. A system records what you tell it, and what you do not tell it is sitting on your shelf.
So this book is about the doors. The receiving door where every error begins, the eight doors out of which a sale is only one, shrinkage broken into six named causes with theft last rather than first, the blind cycle count, and the rule that decides whether any of it works: an adjustment with no written cause is a licence.
And it treats inventory as what it is — cash standing on a shelf. Excess does not appear in your profit and does not look like a loss, and it quietly strangles your liquidity. Dead stock is not goods waiting for a buyer; it is a loss that already happened and was not acknowledged. And chapter one says when you do not need a system at all.
02 — What you will learn
What you will learn
The five doors where errors are created — and why the fifth hides the other four
Why inventory is cash standing on a shelf, and when you do not need a system at all
One code and one unit: the definition error that multiplies your mistakes by twelve
The three-way match at receiving, and never signing for what you did not count
The eight doors out — and why branch transfers and internal consumption explain most large differences
Separating on hand, reserved and available — and showing the right one to whoever sells
Breaking shrinkage into six named causes, and why theft is the last assumption rather than the first
The blind count: not giving the counter the recorded number, and why it is the most resisted rule
The five investigation steps before you adjust — and that an adjustment with no cause is a licence
A reorder point computed from a lead time you measured, and the real price of a quantity discount
Dead stock as an acknowledged loss, four decisions in order, and nearest-expiry-first
Separation of roles in a team of three, and the one measure that cannot be fooled
03 — The chapters
The chapters
- The Number Nobody Knows
- What an “Item” Is for You: The Code and the Unit
- The Receiving Door: Where Every Error Begins
- The Eight Doors Out
- Shrinkage: Name It Before You Measure It
- Counting: Full Counts and Cycle Counts
- Differences: What to Do Before You Adjust Them
- How Much to Order: The Reorder Point and the Excess
- Dead Stock and Expiry
- Who Receives, Who Issues, and Who Counts
- Measurement: Is Your Number Closer to Your Shelf?
- The Full Audit: 36 Questions and a Ninety-Day Plan
04 — What you get
What you get
12 chapters + a 20-term glossary
A 36-question audit + a ninety-day plan
No program named, and no system required to start
Print-ready PDF included (~46–60 pages)
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06 — Questions, answered
Questions, answered
I do not have an inventory system. Is this book for me?
Especially for you. Nothing in it requires a system: the ten-item count, the doors-out table, the shrinkage log and the blind cycle count are all done on paper, and they are what a system would need anyway. And chapter one says plainly when not to buy one — a workshop with dozens of items you can see, or goods that come in and go out the same day, or a process with no discipline yet, because a system will document your chaos more precisely.
My problem is theft. Does the book cover it?
It covers it as the last of six causes rather than the first, and for two practical reasons. Assuming theft stops the search: you install a camera and tighten up on people, and the difference stays exactly as it was because its cause was an unrecorded transfer. And it damages your team: an implicit accusation against someone who did not steal costs you a good employee. Check the five first, and if a difference remains after months of a disciplined procedure, you then act on evidence rather than suspicion.
How is it different from the ERP and point-of-sale books?
The ERP book is about choosing and implementing a whole business system — requirements, vendors, contracts, phased rollout. The point-of-sale book is about the till itself. This one is about what stands behind them: the physical goods, the doors they move through, and the discipline that keeps the number true. And the return that moves inventory as well as the financial side is in “National E-Invoicing”, and cleaning your item list is in “Cleaning and Migrating Your Data”.
We are only three people. Can we separate duties at all?
Not fully, and the book answers that objection rather than ignoring it. The substitutes are cheap: whoever receives does not count the same item, roles rotate between rounds, you approve adjustments and write-offs yourself even remotely, you inspect a weekly sample of receiving documents, and everyone works under their own account so every movement’s author is known. That last one is how systems compensate for a small team — do not block, but make every action’s author known.
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