What Is a Cycle Count? Cycle count is an inventory management term that refers to checking an inventory subset, usually on the same day of the week. Learn more…

inventory management system offers many benefits. One of these benefits is
enhanced inventory accuracy. Through topShelf’s barcode printing and scanning
features, you can easily tag your inventory with barcodes and scan them into
and out of inventory as needed. When topShelf is used consistently in your warehouse,
you’ll find your inventory management practices improve. Inventory accuracy may
improve dramatically, depending on the degree to which your staff uses topShelf

When your
inventory accuracy reaches 95% or more, you may find that switching from full
inventory audits to cycle counts is a better way to prevent shrinkage.

What Is a Cycle Count?

Cycle count
is an inventory management term that refers to checking an inventory subset,
usually on the same day of the week. It’s similar to a regularly scheduled spot
check of your inventory. Cycle counts are easier to do and less disruptive than
full inventory audits, which may require you to shut down your warehouse for a
day or more.

Cycle counts
should only be used in warehouses where there’s a high degree of inventory
accuracy. They can be useful to spot potential inventory errors and to get to
the root of a problem when you suspect inventory mistakes.

Four Types of Cycle Counts

There are
several methods used to conduct cycle counts. The four most common include:

  • Pareto Method:
    The Pareto Method of cycle counting follows the Pareto Principle, and
    concentrates on counting items of value the most frequently. Inventory of high
    value is counted often, while inventory with low value is counted less
  • Usage: Some
    cycle counting methods focus on usage. Items accessed more frequently are
    counted more often.
  • Hybrid: Hybrid
    cycle counting methods consider first the Pareto Method calculations, with the
    remaining inventory cycled through based on usage, value, and other factors.
  • Objective cycle counting: Objective cycle counting uses store or warehouse maps to
    assign shelves to be counted to particular inventory management specialists.
    Not every area is counted weekly or monthly, but the rolling stock count
    continually updates the inventory management software to refresh stock counts.

Annual Inventory Counts and Cycle Counts

companies, once they feel their inventory is accurate, switch to a
cycle-counting method only and stop taking annual inventory. You may still wish
to conduct an annual inventory for added accuracy, but in general, cycle counts
can provide accurate, updated inventory management data to your system.

from Scout Software supports cycle counts and can make it easier, faster, and
more efficient for you to conduct annual inventory audits or cycle counts. For
more information on topShelf, visit Scout Software or contact us today.


Let us show you how topShelf Cloud-Based Inventory Management Software can help you streamline processes, increase inventory visibility and accuracy while increasing your revenue.

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