Stock accuracy is one of the most important KPIs in a company warehouse. It informs you if all processes are working correctly and the staff is performing a professional warehouse operation. If your warehouse is failing on stock accuracy, don’t fret. There is a warehouse process that, when implemented successfully, will revolutionize your warehouse operation – cycle counting. The best way to implement an effective cycle counting process is through an inventory management mobile app.
Cycle counting is a process that checks and confirms that a company's physical inventory matches its inventory records. Audit plans are prepared to minimize the chances of transaction errors and maintain recorded stock accuracy. With regular cycle counting, companies audit and track their inventory to avoid chances of mismatch in actual and recorded data. Precisely, cycle counting identifies and rectifies inventory record discrepancies.
What is Cycle Counting?
Cycle counting is an essential task that helps inventory managers identify and address warehouse issues before they snowball. By regularly capturing and monitoring cycle counts, companies can significantly improve the accuracy of their inventory and financial statements.
The process involves physically counting a designated subset of warehouse products at regular intervals. These physical counts are then compared to system stock levels to identify and rectify any discrepancies. Regular counting allows for prompt investigation and resolution of these discrepancies. The frequency of cycle counts is typically set up within the ERP system, with high-volume products counted more frequently than slow-moving items.
Problems with Inefficient Cycle Counting
An inefficient cycle counting process can lead to misplaced inventory, delays in locating stock, customer dissatisfaction, and missed business opportunities. Organizations need solutions that provide real-time visibility into their inventory, regardless of location, to maintain accurate records.
Common excuses for neglecting cycle counting include being too busy, prioritizing customer orders, or staff shortages. While these may seem like valid concerns in the short term, putting off cycle counting only stores up problems for later. The discrepancies between physical inventory and ERP system data will become increasingly apparent, leading to:
- Declining Warehouse Productivity: Time wasted searching for misplaced materials directly impacts productivity.
- Compromised Customer Service: If staff cannot fulfill orders due to missing inventory, customer service suffers.
Mobile Inventory Management for Accurate Cycle Counting
Cycle counting offers a proven method for boosting warehouse stock accuracy compared to traditional annual stock counts. However, the full benefits of cycle counting can only be realized if you move beyond paper-based count sheets, handwritten entries, and manual data input.
Modern digital technologies like barcode scanners, wearables, and smartphones eliminate error-prone paper-based processes. Barcode scanners empower warehouse workers to perform inventory counting significantly faster, often achieving a 50% reduction in cycle counting time. Eliminating the need for manual data entry also minimizes the risk of errors. When integrated with the ERP system, barcode scanning solutions automatically update inventory data in real-time.
The Importance of Inventory Accuracy
A modern mobile inventory management solution, like Innovapptive's mInventory app, can significantly accelerate the cycle counting process and drive up stock accuracy. mInventory seamlessly integrates with your backend ERP system. Warehouse staff can complete transactions directly on the device by scanning a barcode or keying in data, with real-time updates reflected in the ERP system.
During cycle counting, the handheld device guides the user to the bin location of the designated materials. Scanning the material barcode confirms the correct product, and the worker can directly input the physical count into the device. This eliminates the need for paper count sheets, handwritten entries, and separate data entry by office staff. The result? A faster counting process with minimized data entry errors.
Transform Your Warehouse Productivity With Innovapptive
Watch our Connected Inventory Management in action here. To learn more about how Innovapptive’s mInventory can help your company increase cycle counting efficiency and improve warehouse productivity, call 888-464-6668 or schedule a free demo. Our experts are standing by to answer your questions, listen to your needs, and configure a solution to overcome your warehouse challenges.
