Anyone responsible for inventory knows how frustrating inventory inaccuracies can be. Even when inventory is carefully monitored, issues still arise due to a variety of factors, the majority of which can be attributed to basic human error. It's not uncommon to discover there is a discrepancy between the number of actual items on hand and the number that is on record, or for the wrong items to be received in place of desired products.
Discrepancies are problematic and can lead to out-of-stocks, loss of sales, and other grievances. In order to rectify these issues before they become problems, managers implement inventory counting methods that will pinpoint errors. One of the most popular inventory counting methods is cycle counting.
The cycle counting technique is popular for good reason. Unlike physical counts, which require a complete halt in operations and demands that every item in storage is counted manually, inventory cycle counting is an ongoing process expressed in short bursts. Let's walk through eight tips that could help your cycle count accuracy.
What Is A Cycle Count?
Cycle count procedure is a cyclical type of inventory auditing method, in which smaller subsets of your inventory are audited in specified locations on specified days. This method is very similar to physical counts but differs in approach. Instead of counting the entirety of your inventory at once, employees tackle small portions of inventory according to a predetermined schedule.
The process can take anywhere from a week to several months depending on your inventory. Unlike physical counts, cycle counts can be performed on an ongoing basis to account for discrepancies in your inventory. And when you spend less time doing physical counts, you’re able to track inventory more accurately - and your business benefits. It’s that simple!