What does cycle counting involve?

Cycle counting is an inventory auditing procedure where a specific portion of the inventory is counted on a regular basis, rather than counting all items at once. This method allows for continuous monitoring and verification of inventory accuracy, leading to more efficient inventory management. By focusing on a smaller segment of inventory at set intervals throughout the year, organizations can quickly identify discrepancies, make necessary adjustments, and ensure that inventory records are accurate without the need for a full inventory audit which can be disruptive and time-consuming.

This practice helps maintain inventory accuracy and provides a more dynamic approach to inventory control compared to conducting audits of the entire inventory simultaneously or relying on random selections for shipping purposes. The cycle counting method also supports better decision-making and operational efficiency, particularly in fast-paced warehouse environments.