Cycle Counting and Physical Inventories
Cycle Counting for More Accurate and Efficient Inventory Counts
If taking inventory of your small-medium sized company seems like a pain, then can you imagine how large companies do it? Since it’s often too expensive to shut down for even a day, large companies cycle count to keep track of their inventory.
Cycle counting validates the accuracy of the inventory in a system by regularly counting a portion of inventory on a regular basis so that ever item in the inventory is counted at least several times a year.
Cycle Counts Compared to Physical Inventory Counts
In contrast to traditional physical inventory counts, cycle counting does not stop a facility’s operations and provides an ongoing measure of inventory accuracy. With cycle counting, companies can enjoy:
- Confidence in an accurate inventory count
- Operational efficiency
- Less inventory write-offs
In order to perform accurate cycle counts, many organizations use software in order to implement an inventory control system, often a part of a warehouse management system. This could include mobile computers with integrated barcode scanners, allowing workers to automatically identify items, and enter inventory counts via keypad. From there, the software transmits data to the host database system, which can easily generate inventory reports.