What is Cycle Counting?

Cycle counting is an inventory auditing procedure where a small subset of inventory is counted on a specified day. Instead of doing a full physical inventory, cycle counting allows for regular, targeted inventory checks throughout the year, helping to maintain accurate inventory records and identify discrepancies early.

Cycle Count Scheduler Tool

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Cycle Count Schedule

Key Points of Cycle Counting

  • Allows for regular, targeted inventory checks throughout the year
  • Helps maintain accurate inventory records
  • Identifies discrepancies early
  • Reduces the need for full physical inventory counts
  • Improves inventory accuracy and reduces carrying costs

Why Cycle Counting Matters

  • Increases inventory accuracy without disrupting daily operations
  • Helps identify and resolve inventory discrepancies quickly
  • Improves financial reporting accuracy
  • Reduces the risk of stockouts and overstocking
  • Enhances overall operational efficiency
  • Provides ongoing training opportunities for staff

Strategies for Effective Cycle Counting

  • Establish a consistent schedule based on item value and turnover
  • Use ABC analysis to prioritize high-value or fast-moving items
  • Implement robust inventory management software
  • Train staff thoroughly on cycle counting procedures
  • Regularly review and adjust your cycle counting strategy
  • Use barcode scanners or RFID technology for increased accuracy
  • Investigate and resolve discrepancies immediately
  • Rotate counters to ensure fresh perspectives
  • Document all procedures and findings for future reference
  • Use cycle counting results to improve overall inventory management