Anyone responsible for inventory knows how frustrating inventory inaccuracies can be. Issues arise due to a variety of factors. Granted, human error causes the majority of issues. It’s common you will find discrepancies between the number of actual items on hand and the number that is on record. Or, you will find the wrong items to be received in place of desired products. If these are problems you have faced, this article will show you the best cycle counting tips to fix these problems.
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, 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?
The cycle count procedure is a cyclical type of inventory auditing method. Furthermore, 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 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!