How does cycle count help to maintain the accuracy of inventory?« Back to Questions List

Cycle counting is an inventory approach where part of the inventory is counted each day and eventually, the entire inventory is recorded over a span of time following a counting schedule. Any or all discrepancy immediately comes into notice via a scheduled cycle count, hence making the process of adjustment easier.

Although the process is labour and time-consuming, the advantages are such that the process is highly recommended. It is highly important to have a timely cycle count, specially in B2C operations. It is also a fine measure of the accuracy of the company’s inventory management system. The advantages can be summarised as :

Increased inventory accuracy
Better customer service
Reduced loss
Reduced errors in management system
Operational efficiency
Improved reporting