Inventory Cycle CountAuthor : Mohammad Ali , Founder and CEO of Inventory Software Services
Published : 2018-09-02 17:29:20 Last Modified :
Inventory cycle count is an inventory management auditing tools which allows you to trucking your inventory in a specific day or a specific date range. you may say that it's a part to part auditing of a business for better performance of business analysis.
Cycle counting is an important part of many business management practices. It's gives you specific performance report rather than whole entire report. For you can easily analysis your current business status and it's easy to take take right decision in right time.
Best inventory cycle count practices:
How often you do a cycle count it's depends of your business demands. Your business demands depends of your business type, size, sales and other business related factors. You may use ABC inventory analysis to determine class A Products. And can audit high value items more frequently than low value items. Here I share some most important inventory count practices:
Count one category at a time : It's a great way of inventory cycle count to count your cycle according to your products category. It's give to category wise counting reports and you can easily find out your top and low categories and it's helps you to drive your business in the right way.
Choose count categories based on seasonality : Some business are seasonly and some products is also seasonal. For those businesses, specific seasons have specific demands. If your business have seasonal items it's better to count your cycle according to season and it's give you your right demands in right time.
Mix up your cycle count schedule : It's no doubt, your all employees may not honest. So change your cycle count schedule frequently. For they have not any preparations for dishonest affairs.
Types of inventory cycle count procedures
There are three major inventory cycle count methods you can use:
Control group cycle counting : In this types of cycle counting same items counting repeated over and over in a short period. Repeated counting's are find out the errors in count technique which can be solved to an accurate counting.
Random sample cycle counting : Sometimes ,In big businesses there are many similar items. In these case you can randomly select your items for cycle counting. It's helps you to reduce disruption of any category counting. You can easily counting in short time even in your busy business hours.
ABC cycle counting : ABC cycle counting uses in ABC inventory management to classify your items according to value into three categories - A type items, B type items and C type items. It uses Pareto principle to classify items.
After all, inventory counting is an very important auditing tools in most modern inventory practices. It's greatly helps you to audit your business part to part and you can easily find your business status and take a decision for better business services.