Advantages of Cycle Counting 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.