Cycle counting is hugely beneficial to any business that chooses to utilize it. But how do you tap into those benefits and use cycle counting to make your inventory processes successful?
Here are some tips for implementing a cycle count strategy, making inventory management successful.
Create and Stick to a Schedule
Whether you choose to count daily, weekly, or monthly is up to your inventory manager, but strictly follow the schedule you choose, because the only way to fully benefit from cycle counting is to be consistent. If you need help, create a physical calendar that serves as a visual reminder of your cycle count schedule. For extra motivation, create a checklist that gives you the opportunity to physically cross off each count as you complete it.
To keep your cycle counting from taking too long, keep your warehouse and other inventory storage areas organized and ready for counting. That includes keeping shelves properly filled and having all stock locations organized. You could, for example, sort your inventory by its count schedule for easier counting; doing so makes identifying what needs to be counted simple and saves valuable time.
Before counting, you also need to close any open inventory transactions to ensure accurate numbers.
Don't focus on counting your largest or best-selling items first — start with something smaller to better acquaint yourself with the process. Learning the process with something "less important" will remove some of the stress of getting it perfect the first time. In addition, a smaller undertaking will give you a chance to make — and correct — mistakes before you move forward with a full-out cycling counting schedule.
Review, Adjust, and Take Action (After Counting)
Review your numbers as soon as possible after completing a count to determine the next steps, such as investigating discrepancies and other errors you may have found. This can stop a small problem from becoming a big problem and save you from a big write-off at the end of the year. Also, as you notice issues or identify ways to make your cycle counting process easier, make adjustments accordingly.
The most difficult aspect of switching from year-end inventory counting to cycle counting is getting started. Once you do, however, you'll immediately see how much more accurate your inventory numbers are and how much less stress you feel in regards to keeping your inventory in tip-top shape. You will also find that you've eliminated the need for that year-end cycle count that requires too much effort, time, and money.
Are you new to the concept of cycle counting but would like to try it? Let the experts at Southeast Computer Solutions help you implement a cycle count process tailored exactly to your business inventory management needs. For more information about implementing inventory best practices and switching to cycle counting, contact us today.
About Southeast Computer Solutions
Southeast Computer Solutions is based in Miami, Florida, and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care. Learn more by visiting our website or calling 305-556-4697.