Streamlining Inventory Management with accurate Inventory Counts

Inventory management is a critical aspect of any business that deals with physical products. One of the key processes in inventory management is the inventory count. This process involves physically counting and recording the quantity of items or products a business holds in stock. It helps ensure that the recorded inventory matches the actual physical stock, allowing businesses to manage their resources and finances accurately.

Recently, I visited a client's warehouse that was in a state of disarray. The shelves were cluttered, items were misplaced, and the inventory records were far from accurate. The client was struggling to keep track of their stock, leading to frequent stockouts and overstock situations. This visit highlighted the importance of having an effective inventory cycle count system in place.

Benefits and Need for Inventory Count

During my visit, I suggested implementing an inventory cycle count system to help the client manage their stock more efficiently. By pasting labels on items, we could start counting inventory systematically using Smart Count Application. This would not only help in maintaining accurate inventory records but also in planning finances for the future better.

The benefits of an inventory cycle count system include:

• Accuracy: Regular cycle counts ensure that the recorded inventory matches the actual physical stock.
• Efficiency: It reduces the need for a full physical inventory count, which can be time-consuming and disruptive.
• Resource Management: Accurate inventory records help in better resource allocation and financial planning.
• Problem Identification: It helps in identifying discrepancies and addressing them promptly.

NetSuite offers two primary methods for conducting inventory cycle counts: the traditional Cycle Count and the Smart Count App.

Cycle Count in NetSuite

The traditional Cycle Count method involves periodically counting a subset of inventory items. This method is typically used to ensure that inventory records are accurate without having to perform a full physical inventory count. Cycle counts are usually scheduled based on the importance and turnover rate of the items. High-value or high-turnover items may be counted more frequently, while low-value or low-turnover items may be counted less often.?

The Cycle Count process in NetSuite includes the following steps:

1. Create a Cycle Count Plan: Define the items to be counted, the frequency of counts, and the schedule.
2. Generate Count Sheets: NetSuite generates count sheets for the items to be counted based on the cycle count plan.
3. Perform the Count: Physically count the items and record the quantities on the count sheets.
4. Enter Count Results: Enter the counted quantities into NetSuite.
5. Reconcile Discrepancies: Compare the counted quantities with the recorded quantities and investigate any discrepancies.

Smart Count App in NetSuite

The Smart Count App is a more advanced and automated method for conducting inventory cycle counts in NetSuite. It leverages mobile technology and real-time data to streamline the counting process and improve accuracy. The Smart Count App also allows users to perform counts using mobile devices, which can scan barcodes and update inventory records in real-time.

Key features of the Smart Count App include:

• Real-Time Updates: Inventory records are updated in real-time as counts are performed, reducing the risk of discrepancies.
• On the spot counting: Users can perform counts using mobile devices anytime without the need for scheduling, making the process more flexible and efficient.
• Automated Scheduling: The app can automatically schedule counts based on predefined criteria, such as item turnover rates or inventory levels.
• Error Reduction: The use of barcode scanning and real-time data updates helps reduce human errors and improve accuracy.

Cycle Count vs. Smart Count App

While both the traditional Cycle Count method and the Smart Count App have their own advantages, the choice between the two depends on the specific needs and resources of the business.

• Availability: The Smart Count App can be used if the clients have a OneWorld account of NetSuite. For businesses with a non OneWorld account, the traditional Cycle Count method is available.
• Spot Count: The Smart Count App offers a feature called Spot Count, which allows for immediate counting of specific items without disrupting the overall inventory count. This feature is not available in the traditional Cycle Count method.
• Specific Preference: Item-specific preferences can only be defined in the Smart Count App, allowing for more tailored inventory management.
• Auto Approval: The Smart Count App supports auto-approval of counts, streamlining the process further. This feature is not available in the traditional Cycle Count method.
• Hold Items: In the traditional Cycle Count method, single items from the task list cannot be held. In the Smart Count App, items can be held for recount, approval, or rejection, providing more flexibility.

In conclusion, both the Cycle Count and the Smart Count App are valuable tools for managing inventory in NetSuite. By choosing the method that best fits their needs, businesses can ensure accurate inventory records, optimize their resources, and improve overall operational efficiency. The visit to the client's warehouse underscored the importance of having a robust inventory cycle count system in place, and with the right tools, businesses can achieve greater accuracy and efficiency in their inventory management processes.