Importance of Cycle Counting on Inventory Management

Cycle count as an inventory transaction designed to ensure the accuracy and validity of inventory. Technically speaking there are two similar transactions: cycle count and physical inventory. A physical inventory is designed to count inventory ones and you could choose how to count inventory by specific item or group of items or locations, etc. In order to do that system will put items or locations on “freeze” in order to maintain an accurate count. Cycle count designed to automate the counting process and to reduce time, errors, cost and etc. System will schedule the count in advance and will make sure that your entire inventory will be counted during provided time period without interrupting daily transactions. Using cycle count you do not need to frequently count the same items and make sure that you don’t end up paying for the cost of goods that you don’t need to have in stock.

If you’re selling online and at a retail location, you must have an integrated inventory management system like CoreIMS, that can track your inventory in real-time in order to avoid overselling. CoreIMS ensure that you always have enough product in stock and never run out of stock.

Benefits of Cycle Counting:

  • Accurate information: Cycle counting keeps your inventory records accurate and make sure that things will be available when needed.
  • Fewer Inventory Errors: Cycle count allows a company to catch inventory related errors sooner because, there isn’t a long gap between counts.
  • Reduced interruption of operations: In traditional physical inventory companies shut down warehouse operations to ensure accurate counts, depending on the size of your business it could take days, weeks and even months. Cycle count eliminate the need to suspend operations because with cycle count, the counts are much smaller and ongoing.
  • Save time and resources: Manual counting of your entire stock takes time, effort and sometimes money. By using cycle counting you will need fewer time and employees to count items on a daily basis and there is no need to hire other companies to conduct your inventory counts.
  • Increased sales and costumers: Poor inventory management leads to stock out and out of stock which means you maybe selling an inventory that you do not actually have , when you have well-maintained records, you know where your products are and how many products you have in stock which automatically increase sales and customer satisfactions.
  • Better buying decisions: In the cycle counting method, the inventory counts are done regularly, this will help you order the right amount of stock. Inaccurate counts could lead you ordering too many of an item which leads to excess carrying cost and other issues while ordering too little leave you unable to fulfill orders. Cycle counts allows you to order based on real data that represent your stock level.

Business owners are switching to automated inventory management systems to both protect their employees and boost their sales. Automate your inventory operations with CoreIMS Inventory Management System. If you have any questions, please contact us at