Tag Archive: cycle counting

Inventory Accuracy Pitfalls

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Why do so many companies run into issues with inventory accuracy?  After working on hundreds of projects with companies spanning many industries such as aerospace, building products and food, I’ve found these pitfalls are the most common: Transaction timing issues – although they might perform system transactions, they are not completed on a timely basis. Thus, the system gets all mixed up – with the best case scenario. Transaction quantity issues – who hasn’t had fat fingers and keyed in 10000 instead of 1000? I’d be hard pressed to think of a client who hasn’t experienced that issue. In addition,…
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Cycle Counting Remains Core to Success

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I’ve started working with one of my clients on a cycle count program, and so I’m reminded of the critical importance of this supply chain fundamental. If you cannot find the right inventory in the right place at the right time, your customer will be negatively affected. This should be a sufficient reason to pay attention if you’d like to grow – or even maintain your customer base; however, it will also impact your profitability and cash flow if you need additional incentive. Cycle counting is a measurement process; however, cycle counting alone will do NOTHING to fix your inventory…
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Cycle Counting: The 5 Keys to Inventory Accuracy

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The main goal of cycle counting is to cycle through your inventory to ensure inventory accuracy on a consistent basis. (In contrast, a physical inventory is a point-in-time process, typically yearly, to ensure inventory accuracy). The keys are as follows: 1. People: It is important to make sure the right resources have the right responsibilities. A counter requires a detail-orientation and should take counting seriously (it is amazing how much time and energy is saved with a cycle counter that understands the value of counting right the first time), whereas a reconciler requires an analytic ability with enough of a…
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