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Cycle Counting: Making it Work For You

As we mentioned in our last post, one of the best ways to make cycle counting work for you is to stick to it! Start by thinking about your daily/weekly business operations and consider the times you could fit cycle counting in. Perhaps it's something you could do in the morning before business kicks off. Maybe it's something you could do on Friday at 4:30 before calling it a weekend. Maybe you'll decide that taking a later lunch once a week is the way to go. 

What, When, and How to Cycle Count

Whatever the case may be, make your schedule specific. Define when you'll be counting, and what. We mentioned ranking your inventory items before, and here's where that comes into play; you might, for example, plan to count your “A” items – the ones with a higher turnover or a higher monetary value – twice a week. Then you might decide that "B" items only require counting once a week and that a monthly count is sufficient for "C" items.

Remember, though: the more you stick to the schedule and the more frequently you count, the more accurate your records will be.

Cycle Counting Rulesrules, regulations

Although cycle counting allows you to do away with a year-end inventory count, some of the same rules apply to cycle counting. These rules include closing all open transactions, receiving and physically putting away all purchase orders and transfers, and completing/invoicing customer orders before beginning a count. Failure to do these things will result in inaccurate data and make cycle counting less effective. 

Keep the End Goal in Mind

Not everyone approaches cycle counting the same way, but the end goal is always the same – better inventory management, which includes higher efficiency, more accurate data, and a less stressful counting schedule. It may take a bit of time and patience to get things going, but the long-term benefits significantly outweigh any initial difficulties.

Are you new to cycle counting? Let the experts at Southeast Computer Solutions help you implement a process tailored to your business inventory management needs. For more information on implementing best practices and using cycle counting for a better inventory management process, contact us today.

Cycle Count eBook

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.


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