By: Sheri Blaho
If you can lock down the process for consistent cycle counting, your firm can avoid having the painful task of a huge full physical inventory count. How do the companies with thousands of square feet in warehouse space and multiple locations do it? They cycle count……every day. It is a routine process that never stops.
So exactly what is cycle counting? It is a periodic system in which different portions of an inventory are counted or physically checked on a continuous schedule. Each predefined portion is counted in a definite, present frequency to ensure audits of each item at least once a year. Fast-moving or more expensive items are counted more often that slower-moving or less expensive ones. Certain items may even be counted daily.
The benefits are numerous and may seem evident. All the benefits tied to having the correct information in your inventory software system:
- Replenishment features of any software package assumes valid inventory levels - the only way to leverage purchasing and stocking prompts.
- Customer confidence will be undermined immediately when fulfillment promises are not kept.
- The discipline required by a firm to do cycle counting with permeate throughout all associated business process yielding a stronger firm.
- Finding discrepancies closer to the time of the problem gives a better opportunity to fully diagnose the case and correct the process or procedure that allowed the problem.
Whether you are an Acumatica or Sage 100 client, the ability to cycle count is an inherent feature in your system. If you are not sure how to implement a cycle count program, Brandon Cumby or Shawn Slavin will be happy to discuss a plan of attack with you.