Cycle Counting - What is it and how can it help you maintain accurate inventory quantities?
Does this sound like you?
- When you need to count inventory, you perform a physical count and manually enter the count into an Excel spreadsheet or paper worksheet
- You often run out of inventory
- You sometimes order too much
- When you need to produce a part, you go out to the shop floor and physically see if you have the needed material(s)
How can you make your warehouse more efficient, thus saving your employees time and saving you money in the long run?
Cycle Counting works by creating an inventory auditing procedure, which falls under inventory management, where a small subset of inventory, in a specific location, is counted on a specified day.
For example, rather than counting large amounts of inventory every day (or week), you audit your inventory to be counted on certain days, for certain products and maintain an ongoing count. The automated creation of the inventory audit list will streamline this process.
Benefits of cycle counting include:
- Reducing the number of write-offs
- Limiting the amount of disruption within your warehouse
- Increasing your confidence in buying decisions
- Decreasing discrepancies in your warehouse/on your shop floor
MIE Solutions provides an enterprise resource planning software for manufacturers called MIE Trak Pro. MIE Trak Pro has been chosen as Gartner’s 2017 Leader in Manufacturing Software and Gartner’s 2017 Contender in ERP Software.