Cycle count
Maintain accurate inventory records with cycle counting procedures that regularly verify stock levels through systematic, rotating physical counts.
Sarah Dotson
What is cycle count?
Cycle count is an inventory auditing method where a small subset of inventory is counted on a rotating schedule throughout the year, rather than conducting a single annual count. This systematic approach helps maintain accurate inventory records while minimizing operational disruptions.
Cycle counting components
Effective programs include:
• Counting schedules
• Item classification
• Count procedures
• Accuracy metrics
Counting methodologies
Count prioritization
Organizations typically prioritize items based on value, movement frequency, or criticality. This ABC analysis ensures high-value and fast-moving items receive more frequent verification.
Accuracy verification
The counting process identifies discrepancies between physical counts and system records, enabling quick investigation and correction of inventory variances.
Implementation considerations
Organizations must establish clear procedures for:
Program management
Success requires:
• Regular schedules
• Clear procedures
• Error investigation
• Performance tracking
Cycle count best practices
Organizations should maintain:
• Consistent procedures
• Trained counters
• Documentation standards
• Root cause analysis
Cycle counting serves as a crucial inventory management tool, enabling organizations to maintain accurate stock records while minimizing the disruption of full physical inventories.
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