In this article we explain the importance of carrying out a cyclical inventory count in a warehouse and the benefits it brings to your distribution company.
Cycle counting of stocks step by step:
1.First: planning
Establishing a cycle counting plan that defines the frequency, methodology and resources needed to carry out the process is key.
2. Inventory Segmentation
It is essential, then, to divide the inventory into categories or zones to facilitate the execution of the count, ensuring that all stock is regularly reviewed by the team of collaborators.
3. Resource Allocation:
Designate work teams responsible for cycle counting, ensuring that staff are trained and have access to tools such as barcode scanners (PDAs) or mobile devices.
4. Use of Technology:
Implement automation technologies, such as inventory management systems (WMS) and scanning devices, to streamline the process and minimize manual errors.
5. Sample Selection:
Select representative samples of products in each category to perform the count, ensuring that all items have the opportunity to be verified over time.
6. Real-Time Registration:
Record counted quantities in real time using computer systems connected to the central inventory management system to maintain data accuracy and integrity.
7. Discrepancy Analysis:
Analyzing discrepancies between counted quantities and recorded quantities, investigating the reasons behind the differences and taking corrective action is another critical step.
8.Updating Records:
Finally, update inventory records based on cycle count results to accurately reflect actual inventory in your warehouse.
Let’s now look at some benefits of performing cyclical stock counts in your company:
1. More accurate inventory
Performing this type of count ensures greater accuracy in inventory records by identifying and correcting discrepancies on a regular basis.
2. Reduction of Losses and Theft:
Helps to detect losses and thefts early, minimizing the economic impact and improving warehouse security
3. Operational Efficiency:
It enables more efficient management of operations by providing up-to-date data on stock, thus facilitating decision-making and inventory replenishment planning.
4. Optimized processes:
Identify opportunities to improve logistics processes and reduce the likelihood of supply chain disruptions.
5. Improved Customer Satisfaction:
Ensure product availability , avoiding order delays and improving customer experience.
Remember:
Implementing cycle counting is not only a best practice in inventory management, but it also provides tangible benefits that positively impact your company’s efficiency and profitability.
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