Cycle counting is a method of inventory auditing where items are counted on a routine schedule, rather than counting the entire inventory at once. Used as a method of checks and balances, cycle counting helps businesses confirm physical inventory matches inventory records, without halting operations.
How Does Cycle Counting Work?
Inventory items are typically grouped and scheduled for counting based on factors like value, movement frequency, or location in the warehouse. In many cases, high-value or fast-moving items might be counted more frequently than others.
Why Inventory Management Methods Matter
For manufacturers and distributors, accurate inventory data is critical. Cycle counting plays a key role in:
- Operational efficiency
- Financial decisions
- Regulatory compliance
- Managing downtime
- Improved inventory accuracy
The Implications of Inaccurate Cycle Counting
Inaccurate cycle counting can have wide-ranging effects on a business, leading to misstated inventory values, inaccurate cost of goods sold (COGS), stockouts or overstocking, production delays, increased storage costs, and unfulfilled orders. Other impacts include:
- Frequent downtime events
- Delayed shipments
- Compliance issues during audits
- Expedited shipping costs
- Higher carrying costs
- Reduced customer satisfaction
- Damaged company reputation
Why Use Automated Solutions for Cycle Counting?
An effective inventory control program ensures smooth production, reliable delivery, and financial integrity. Investing in automated solutions for cycle counting over manual counting enhances accuracy, saves time, and supports scalable, efficient warehouse operations.
Benefits of Effective Cycle Counting
- Improved inventory accuracy
- Reduced operational disruptions
- Improved cost savings
- Better decision making
- Higher order-fulfillment rates
- Improved customer service
- Labor efficiency
- Real-time data visibility
- Performance analytics
- Improved scalability
Numina’s RDS Victory Voice™, a voice-directed solution, is just one way to improve cycle counting processes. Victory Voice guides workers throughout the cycle counting process, directing and validating each step through a combination of commands, responses, and barcode scanning.
When integrated with our warehouse automation software, Victory Voice can streamline warehouse operations in the following processes: receiving, replenishment, picking, packing, putaway, and cycle counting.
Learn more
Website: About Numina Group
Blog: Numina Group’s Warehouse Control System Automates and Increases DC Efficiency
Blog: Numina Group Announces the Release of a Full Featured Warehouse Management System, WMS
