Implementing your cycle counting program

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Implementing Your Cycle Counting Program

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Have the benefits on cycle counting from our last blog convinced you of the value cycle counting can bring to your business? If so, it’s time to implement your cycle counting program for optimal inventory management. Keep the following tips in mind as you develop your cycle counting plans:

  • In order for cycle counting to do you any good, it MUST become a part of your daily or weekly routine. Too many businesses make the mistake of not counting their inventory often enough. If you rely on sporadic cycle counts, you will only receive sporadic results. You can only get the full benefit of cycle counting by counting your inventory on a regular basis (either daily or weekly).
  • Create a schedule for cycle counts. Your business is unique, so you must create the schedule that works best for your business. However, we recommend developing a 13 week cycle counting calendar. This will ensure that every item in your warehouse is counted at least quarterly.
  • Commit any open inventory transactions that you are counting before you begin. Make sure that you’ve completed all overstocking, understocking and back stocking before you start counting inventory. If you have transactions that are still open, they will need to be reconciled with your count before committing the cycle count.
  • Start with a small portion of inventory. Cycle counting should not overwhelm you; it’s meant to ease the stress involved in inventory management, not add to it. Start out small and work your way up. Don’t try to count your biggest or most popular item right away. Start with items that have less movement. Take the time to familiarize yourself with the cycle counting system before you jump into the process.

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