Inventory, stocktaking and equipment – explained in plain words.

Sorts items into A, B and C by their share of consumption value. Often around 20% of items account for about 80% of the value – that is where a closer look pays off.

A unique number for a single device. It tells two identical cordless drills apart and links each one to its holder, inspections and history.

A quantity of a product made under the same conditions and carrying the same batch number. Essential for recalls and expiry dates.

The best-before date says until when a product is sure to keep its properties. The expiry date is stricter: after it, a medicine for example must no longer be used.

What storage costs per year as a percentage of average inventory value: tied-up capital, space, insurance, shrinkage. Often 15 to 30%.

Items have no fixed location and go into the next free one instead. That saves space – but only works if a system knows every location.

Who is allowed to inspect work equipment: someone with suitable vocational training, professional experience and recent relevant work (German Ordinance on Industrial Safety, § 2 BetrSichV).

Material that gets used up at work: screws, gloves, cable ties, disinfectant. It is counted in quantities, not as individual pieces.

Square 2D code that stores many characters in a tiny area – the standard for UDI on medical devices and for small parts.

How many days current stock will last at average consumption: stock divided by average daily consumption.

Recurring inspection of electrical installations and equipment under German DGUV Regulation 3. Guide value for portable devices: 6 months, on construction sites 3 months.

Globally unique item number issued by GS1, usually 13 digits long and printed as a barcode on almost every package. One scan and the item is identified.

Calculates the order quantity at which ordering and holding costs combined are lowest. In German-speaking countries it is known as the Andler formula.

Picking rules: with FIFO, what came in first goes out first. With FEFO, what expires first goes out first – a must wherever expiry dates matter.

The list of all assets and liabilities by type, quantity and value on a reporting date – the result of the stocktake.

How often average stock is used up and replaced in a year: annual consumption divided by average stock.

Replenishment by signal: when a bin is empty, it triggers exactly one fixed reorder. In small-parts stores it is known as the two-bin system.

The time from spotting a need until the goods are ready to use on the shelf – including ordering, delivery and goods receipt.

The upper limit an item is replenished to: safety stock plus order quantity. It caps tied-up capital and the space you need.

The lower limit stock should not fall below – technically usually the same as safety stock. In many software tools, however, it is the value that triggers the reorder.

Radio technology for a distance of a few centimeters: hold your smartphone to the tag instead of scanning a code. Ideal for equipment where labels get dirty.

Stock is updated continuously and counted across the year instead of on one reporting date. Permitted in Germany under § 241 (2) HGB.

Square 2D code that any phone camera can read. It stores far more than a barcode and stays readable even if part of it is damaged.

The stock level at which you need to reorder: consumption during the lead time plus safety stock.

Radio tags that can be read without line of sight and, depending on the technology, from several meters away – even many at once. More expensive than barcodes.

A reserve for consumption peaks and delivery delays. Normally it is left untouched and makes sure nothing runs out when things take longer.

Stock that is missing without any recorded withdrawal: spoilage, breakage, theft, forgotten withdrawals. It only becomes visible at the stocktake.

The difference between the counted physical stock and the book stock in the system. Usually caused by unrecorded withdrawals, mix-ups or counting errors.

The physical count of stock: counting, measuring, weighing. In Germany, merchants must draw up an inventory list at the end of every financial year (§ 240 HGB).

Everything a business uses to work but does not use up: tools, machines, measuring devices, vehicles, IT. In German law usually called “Arbeitsmittel”.

Classifies items by how evenly they are consumed: X steady, Y fluctuating, Z irregular. Together with ABC analysis a strong duo.

All stock is counted on one day, usually at the end of the financial year. For German tax purposes, a window of ten days before or after the reporting date usually applies.