When your Inventory arrives at a Cahoot Warehouse as part of an Inbound Shipment, Cahoot inspects your Inventory for damages that may have occurred during transit, counts Inventory, and processes SKUs to meet Cahoot's requirements. 

However, while Cahoot opens at least one case per SKU to physically count Units of Inventory, Cahoot expects all cases to be uniform and contain the same Quantity of Units. 

During daily operations, Cahoot warehouses may discover Inventory discrepancies compared to the expected Quantity.

Non-Inbound Sources of Inventory Adjustment

1. The Cahoot Warehouse opens a case and discovers expected Qty missing or damaged

As Units are sold and new Orders are prepared for Shipment, Cahoot may discover that a Unit is missing or damaged when opening sealed cases. If the Units are damaged, pictures of the damaged Units are taken, and Inventory is adjusted. If Units are missing from a case, the SKU is flagged for the next Cycle Count, and an Inventory audit will take place.  

2. Inventory discrepancy noticed when fulfilling an Order

Similarly, when processing Orders, Cahoot may discover an Inventory irregularity. In these instances, the SKU is also flagged for the next Cycle Count, and an Inventory audit will take place. 

3. Inventory discrepancy discovered during Cycle Counts

Cahoot performs Inventory audits every other week based on our algorithms. SKU Sales Velocity, Prime status, and other metrics are used to determine which SKUs should be counted, along with any SKUs flagged for manual review.

When discrepancies are found, Cahoot re-confirms the physical Inventory count, and investigates the cause. All discrepancies (positive or negative) appear on the Lost and Found Inventory Report, along with investigative notes from Cahoot.