Benefits of Cycle Counting
Cycle counting is a new inventory management process where physical inventory is counted. Unlike traditional inventory management, physical inventory in cycle counting come to a halt after all the items are totaled. Cycle counting is popular as it maintains record accuracy, as well as faster detection of faults and errors.
1. Greater profitability
The combination of cycle counting and reliable data control is the only sure way to reduce operation costs. This has a positive impact in decision making not to mention it fosters greater profitability. In simple terms, better inventory control can lead to financial gain.
2. Faster error detection
Another benefit of cycle counting is that is helps save time with respect to physical counts. This provides you with an opportunity to diagnose discrepancy in the inventory to prevent human errors as well as procedural loopholes. For example, inventory write-offs are minimized with consistent cycle counting.
3. Improves operational efficiency
Consistent cycle counting also improves operational efficiency. By having reliable physical inventory, not only will your data be organized, but errors will be reduced as well. For this reason, cycle counting is the only sure way to improve data control, and ensure transfers are processed with ease.
4. Customer satisfaction
Nothing erodes consumer satisfaction more than employees who lack a reliable inventory system. When your company is unable to keep accurate data, orders may not be sent on time. This makes it difficult for account executives to present accurate information to customers. Cycle counting is therefore a viable option to improve customer satisfaction.
5. Easy automation
To conduct accurate counts, many businesses currently use software to help with inventory control. These systems might include computers with barcode scanners for faster data counts. Additionally, automation also helps with inventory reports.
Cycle counting is expensive and tedious. Furthermore, it can not identify cause of discrepancy or errors.