A cycle count program is essential if you want to have accurate inventory levels throughout the year. Annual counts primarily serve financial reporting needs of the business while cycle counts serve both financial reporting and daily operating needs.
Cycle counts can be as simple as counting specific locations or products on a rotating basis to using ABC product and velocity analysis as your cycle count strategy. If done regularly and properly achieving 97% inventory accuracy, in quantity and by location, is attainable and will eliminate the need for annual inventory counts.
This document will explain what cycle counts are and how they are done. While we draw reference to the VISUAL™ ERP environment, the cycle count principles in this whitepaper, work irrespective of your ERP.