I want to make sure we’re on the same page when I discuss a variety of inventory control topics. That’s why I’m taking time to define some important inventory-related terms that you may not be completely familiar with.
Last time I defined Batch Picking. This time it’s Cycle Counting.
Cycle Counting – The act of checking the number of products currently in stock in a warehouse, usually done on a daily or weekly basis.
Cycle counting is a better way to keep your inventory records than having to shut your warehouse(s) down on an annual basis to do a complete inventory count. Many companies still do it the hard way.
As its name suggests, cycle counting lets you cycle through a warehouse and just count some of its items rather than doing it all at once. If you have warehouse management software in place you can use it to schedule cycle counts and focus on different areas each time.
It’s important to keep your inventory records accurate, so cycle counting is a necessary part of doing business. It doesn’t have to be a big inconvenience or anything like that. With a barcode scanner and the proper software backing it up, you can instantly update inventory counts and make sure everything is up to date.
Come back next week for another inventory management term, as well as plenty of other insights on the Fishbowl Inventory Blog.