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5 Reasons Cycle Counting Trumps Annual Inventory Counts

The day you take stock of the inventory of your warehouse could quite possibly be the worst day of the year. Technology can offer a helping hand when it comes to keeping track of inventory throughout the year, but you still need to set aside a specific time to take stock of your inventory by hand. However, there is an inventory option which is not quite as daunting and can save you the headache in the long run. Here are 5 reasons to choose cycle counting over annual inventory counts.

Limited Warehouse Disruption. Cycle counts can become a part of a weekly routine. It takes far less time than annual inventory counts, and can be done around workers. Cycle counts are an ongoing process which works into the flow of the warehouse. When annual inventory counts are performed, the warehouse operations often have to be put on pause in order to have all hands on deck for this monstrous task.

Better Buying Decisions. Cycle counts allow you to continuously assess your inventory. This help you better target what inventory to buy during certain parts of the year. You can know the flow of your inventory better by utilizing cycle counts because you are constantly seeing how your inventory is moving rather than only seeing what your inventory looks like once a year.

Fewer Discrepancies. When you perform counts more frequently, you have more time to notice and correct errors. Errors which have been made months prior to an annual inventory count could become much larger issues in the time between counts. Smaller and ongoing inventory counts help you to catch those errors in a timely manner.

Focus Remains on Inventory. Warehouses are product-based businesses. Cycle counting allows you to maintain confidence in your buying decisions as you can base your decisions off of a constant interaction with your inventory. You will also decrease the amount of stress caused by taking inventory since taking inventory is not a task which needs to be done in a short amount of time.

Save Time and Resources. Taking annual inventory counts uses up valuable time and resources in your warehouse. Annual inventory counts usually mean that your warehouse halts its regular operations to come to a halt until all inventory is taken. Cycle counting allows your warehouse to keep operating while inventory is taken at a more leisurely pace.