Effective inventory cycle counts - Best practice

January 16, 2020 1 min read

Counting Inventory

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: 





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:



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