Cycle Count

Cycle counting keeps inventory records accurate all year without shutting the warehouse for a full count. Accurate records stop overselling and hidden stock, and a reliable program can reduce or replace the annual physical inventory. Count the most valuable and fastest moving items most often. For example, a site with 10,000 locations that counts 400 a day covers every location about once a month, with A items counted more often. Each mismatch found is a chance to fix the cause, not just the number.

How often should you cycle count inventory?

Count high-value or fast-moving A items most often, such as monthly, B items quarterly, and C items once or twice a year. Also count locations whenever a pick finds a shortage.

What is the difference between a cycle count and a physical inventory?

A physical inventory counts everything at once, usually with operations stopped. A cycle count checks a small part of inventory each day or week on a rotating schedule.

What is a blind count?

In a blind count, the counter is not shown the expected quantity, so they record what they actually see. This avoids confirming a wrong system number out of habit.

• ABC AnalysisRanking SKUs by their share of sales
• ShrinkageStock lost to theft, damage, or errors
• Inventory AccuracyHow well system counts match the shelf
• Inventory ReconciliationMatching stock counts across systems
• On-Hand InventoryAll units physically in the building
• Periodic Inventory SystemStock records updated by periodic counts
• Perpetual Inventory SystemStock records updated with every move
• Radio Frequency IdentificationRFIDTags read by radio, no line of sight needed