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Advantages of Cycle Counting Vs. Annual Physical Inventory

By Len Bacharach (275 words)
Posted in Warehouse Operations on March 12, 2019

There are (2) comments permalink

Advantages of Cycle Counting in a 3PL Warehouse Operation Vs. Annual Physical Inventory

3PL WMS facilities and standalone warehouses will benefit greatly when using a cycle counting process as part of their overall warehouse management software program.

 Cycle counting will provide a more consistent and accurate view of your total warehouse inventory. Cycle counting lessens costs of inventory management and reduces overall disruptions within  a warehouse operation. Cycle counting places products into a cycle when they will be counted at regular intervals. With this process you revise down your inventory into manageable chunks that can be done each day, week and month and a fresh cycle begins when this is complete.

A major advantage using a WMS program is the process of cycle counting continues on a consistent and every day basis.  With the Annual Inventory process it results in everything having to be stopped and you have to count each single item. Annual Inventory often results in a large gap of data that happens from one year to the next which causes unexpected losses and discrepancies.

Using Cycle Counting you are able to break your items into groups according to their value and priority.Utilizing the more accurate cycle counting, 3PL warehouses will have more consistent data and less shrinkage because there is no room for discrepancies over a period of time. Warehouse Operations also have a more dedicated group of warehouse personnel who will count inventory on a daily basis.

 Embracing the physical inventory process often involves in non-warehouse personnel having to be part of the process and results in   counting, re-counting and sorting problems 

 CoreWarehosue WMS Software enables logistics and warehouse personnel  to easily adapt to a cycle 

Comments (2)

Jason Darnstaedt posted on: May 1, 2019

Cycle counting can be a valuable tool that 3PL warehouses can use to keep track of stock. However, no system is exactly foolproof so it may still be valuable to do an annual physical inventory on top of that.

MY OTB PLAN posted on: November 4, 2019

Hey Len, good to see a beautifully written content on this topic!!

I was looking for a blog on advantages of cycle counting and annual physical inventory in a 3PL warehouse operation. Cycle counting will provide a consistent result. Annual countings need counting of every single item. Use of WMS warehouse tool helps in many ways. This blog contains all the details, right from the basic. The flow and way of writing is unique, and I really appreciate it. Keep posting such contents. I would love to read more about WMS software. Thanks for the blog!!!

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