Cycle Counting Made Easy
Cycle Counting Doesn’t Have to Be Hard: Here’s 3 Ways To Get Counting!
The secret to any thriving warehouse is a robust inventory management plan executed by a dependable team. By combining tactical processes with talented people, your warehouse can achieve quicker turnaround times and improved accuracy.
Are you looking to improve your inventory management, like so? One way you can achieve success is by incorporating a modern auditing process, called Cycle Counting System, into your warehouse strategy. In this blog, we go over the benefits of Cycle Counting System and reveal three ways you can integrate it into your operations.
What is Cycle Counting?
Cycle counting is a modern approach to the dreaded yearly physical count. Rather than counting stock on a single day throughout the year, leadership determines cycle counts for each warehouse task based on needs and preferences. Cycle counts can be conducted daily, weekly, quarterly, monthly, and so on. Once implemented, Cycle Counting System will enable your warehouse to experience real accuracy and improved efficiency.
For example, let’s say you have two location types in your set-up: Pick Line and Bulk Pallet Storage. The Pick Line location manages inventory at a faster rate than the Bulk Pallet Storage location, putting it at a higher risk for discrepancies. Therefore, your Pick Line location may require a higher frequency of counting than the less dynamic Bulk Pallet Storage location (i.e., monthly vs. quarterly, respectively). Ultimately, Cycle Counting System allows you to conduct just the right amount of counts per task to achieve optimal inventory accuracy.
No matter where you are in the counting process, it’s essential to know the variety of ways cycle counting can be used to improve warehouse operations. We hope you find our list below useful as we explain some of the primary cycle counting features to consider in a Warehouse Management System (WMS):
Basic Non-Directed Counting
Under the fundamental counting method, warehouses use a system to record count results, although the system is not directing the activity. Leadership generally gives the operator daily direction on counting. Once the counts are complete, reports are available.
System-Directed Counting
System-directed counting allows leadership to configure a set of rules that generate tasks. This ruleset will match up to the requirements. Once the tasks are completed, reports on counting will follow. Most modern WMS can support this type of task-driven counting.
Advanced System-Directed Counting
Advanced system-directed counting provides additional layers of control. Below, we provide examples of innovative capabilities in cycle counting:
- Variance Review – Through this feature, the system can place a hold on adjustments until approval.
- Auto-Approval Thresholds – Depending on variances and system needs, the system can set quantity and dollar limits.
- Task Escalations – Based on configured conditions, the counting system can automatically generate re-count tasks to a higher authority task group.
As you can see, cycle counting hugely benefits warehouse operations. By achieving ongoing inventory control, organizations can quickly identify opportunities for training and improvement. More importantly, consistent regulation instills an overall sense of accountability and pride in the team. Modern counting methods also lead to accurate data, which can help highlight any vendor or internal errors. In the end, there is greater efficiency in operations and less negative impact on customers through cycle counting.
To learn more on how you can get started, contact Katalyst Software Services Limited today.
