One of the accepted techniques for improving the accuracy of inventory records in an organisation is the use of cycle counts. These are mini inventory counts that individually are not significant, but collectively become hugely important.
Counting inventory is one of those jobs that many organisations defer until year end - a compliance function rather than a productive management tool.
The process can be very expensive due to the number of people involved and the time spent on the count.
With cycle counts, the idea is to do little and often. One of our clients counts 30 items every day.
Over the course of 90 days, they know they will have counted all items they hold.
Counting 30 items will generally take very little time out of the working day and getting into the routine of doing daily counts will improve inventory accuracy in many ways which include:
FIND PRODUCTS FASTER
VISIBILITY ON MOVEMENT
Discrepancies get detected quickly, allowing problems to be nipped in the bud before they get to be significant.
Warehouse housekeeping occurs more frequently due to the need to keep like products together where possible, making counting easier.
Staff get to know where products are located and resolve anomalies with misplaced items quickly.
By giving priority to higher value or faster moving items, the most important items get the most attention.
Here's some other helpful articles about count cycles:
With the End of the financial year not far away, this is a great time for businesses to start thinking about what they need to do in order to get their books organised, their stock taking completed all ready for a new financial year ahead.
For many businesses in New Zealand and Australia, trading conditions are far from normal at present. Many essential services are operating at maximum capacity to keep up with demand while others have had to shut down to comply with the LockDown rules. For those organizations using cloud-based software, working from home is an option, even when normal operations have ceased. This could be a good time to do a little housekeeping on your system.