How do you measure and improve the performance of your cycle counting team?

Although it is possible to use different criteria with different objectives, the two main approaches to cyclical inventory are counting by product or by address. This is because, by definition, cyclical inventories are logistical: once cycle is set up, the WMS must automatically generate the day's inventory orders, always using the criterion of listing products with lowest inventory levels. The reasons: first, because it takes less effort to count 5,000 pieces than it does to count 50,000; and second, because in the event of an error, it is more likely to be evident where there are fewer pieces in stock (and thus a drop in service level). Other management inventories can fulfill certain roles in loss control and inventory management.

One thing I have found helpful is to do cycle counts by aisle. Counting everything from ceiling to floor. This helps to catch any errors that may have occurred causing lost merchandise. Prioritizing the aisles that need counted and how often they need to be counted is paramount. Short dated area such as fresh proteins may need to be counted more often than slow moving dry goods.

Cycle counting is a game-changer for inventory accuracy. By focusing on high-value or fast-moving items, it minimizes disruption while catching discrepancies early, preventing stockouts and overstocking.

Cycle counts are meant to support perpetual inventory counting system, so cycle counts must be conducted and performed on a daily basis to spot errors that might happened on a previous trading.

Imagine you run a shoe store. You keep track of the inventory. But sometimes, things might not match perfectly. Maybe a shoe gets misplaced, stolen or you forget to update the system after a sale. Cycle counting is like checking a smaller part of your shoe stock regularly, instead of counting everything at once. This helps you catch any mistakes early on and keep your system accurate. Cycle counting aims to: - Find any errors: Maybe a number got typed wrong in the system, or a shoe went missing. - Match your computer system to reality: Make sure the number of shoes in the store actually matches with your computer system. You can choose how often to do cycle counting based on different factors,

Aside from the fact that the inventory is constantly being inventoried, managing these inventory cycles and analyzing the rich data generated in the timeline will allow us not only to have increasingly accurate inventories, but also to be increasingly efficient (and fast) in our cyclical inventory routines - saving time and effort. The intensive use of data by the WMS will allow us to inventory in an increasingly intelligent way.

One thing i've found helpful is to have a documented process for capturing shortages or overages at point of receipt in a centralized database. This eases the pain of cycle counts. Ultimately making inventory control, po management, e&o processes easier downstream.

Cycle counting is awesome for warehouses: - Fewer mistakes, happier customers: Regularly checking inventory helps catch errors before they cause problems for your customers. - Faster order fulfillment: Knowing exactly what you have in stock means you can get orders out the door quicker. - Smarter planning: Accurate inventory data helps you predict what you'll need in the future, so you don't run out of stock. - Find problems before they grow: Catch missing items, damaged goods, or misplaced stock before they become bigger issues. - Save money on storage: It lets you optimize warehouse space and avoid holding onto unnecessary items. Cycle counting helps your warehouse provide better customer service, efficient operations & lower costs.

Cycle counting is crucial for maintaining inventory accuracy, reducing discrepancies, and ensuring that stock levels reflect actual availability. From a general warehousing perspective, it minimizes the risk of stockouts, overstocking, and disruptions in operations. A well-integrated WMS enhances this process by automatically flagging discrepancies, optimizing counting schedules, and generating accurate reports. Accurate inventory leads to improved decision-making, better customer service, and reduced operational costs, as you can trust the data for replenishment, fulfillment, and forecasting.

Whilst measuring stock accuracy kpis is important, measuring the throughput of your cycle counting team ensures the process remains efficient. You can consider for example measuring number of locations counted/hour and the accuracy of those counts (using random auditing of locations).

Cycle counting keeps your warehouse sharp! Track KPIs to see how well your team does. Here's the key: - Inventory Accuracy: How often does your actual stock match what the system says? Aim for high accuracy! - Count Frequency: How often do you count items? High-demand items get counted more than slow sellers. - Count Efficiency: How fast and accurate is your counting? It's a balance between speed and catching mistakes. Use these & set goals to keep your warehouse running smoothly!

Cycle counting performance can be measured through metrics such as accuracy rate, the frequency of counts, time taken per count, and the resolution rate of discrepancies. In general warehousing, tracking how quickly and accurately the team conducts counts is key. With a WMS, performance measurement becomes more granular: the system can track counts per team member, automate discrepancy identification, and generate reports showing areas for improvement. Cycle counting KPIs should focus on improving accuracy while minimizing the time spent on counting, ensuring that productivity is maximized while errors are reduced.

When we think of a perpetual inventory system, we always think of cycle counting. But a good/robust WMS can make a significant contribution on this front: as an advanced feature, WMS must support a Kanban-guided replenishment process, where each replenishment order plays the role of an inventory order, thus contributing to a perpetual inventory counting system (because with each order, tasker is guided to a position and must find "x" pieces of a given batch and/or expiration date - or not. And if it doesn't, WMS itself has to generate a priority inventory order to resolve that item's inventory discrepancy).