Improved ability to fill orders: Because cycle counting allows smaller batches of goods to be counted multiple times a year, inventory variances in the ordering system are reduced. As a result, there are fewer items on back-order.

Reduced Errors: If by any chance the inventory is not accounted for correctly, it is easier to catch the error by way of cycle counting. Cycle counting improves the accuracy of inventory records.

More Confident Buying Decisions: As the Exact Inventory count is assessed regularly, cycle counting ensures much more targeted and informed purchasing. Hence, cycle counting avoids stock outs ahead of time and creates accurate reports for the buyers on your team.

Prevent Inventory Loss:

Inventory shrinkage is something that retail companies are wary of. It can be caused by several factors such as theft, damages, spoilage, or administrative errors on stock movements. For you to prevent inventory shrinkage, you need proper Warehouse Management Systems & Inventory Management strategies. These strategies include the following:

• Create a Barcode & SKU Number for Each Item:

Barcodes and SKU numbers on your items are very helpful for inventory tracking. Labeling your items helps ensure all items are well recorded, thus avoiding inventory loss. Barcodes are essential for inventory visibility.

• Keep Track of Your Inventory Levels:

Monitoring inventory levels periodically helps to reduce inventory shrinkage. Set thresholds with a minimum level of inventory for each product to ensure inventory replenishments as needed. Overstocking should be avoided, since storing excess inventory can lead to damage, decay, obsolescence, and more issues.

• Conduct Regular Inventory Audit/ Cycle Count Procedures:

Compare the stock available in physical locations such as the warehouse or store with the stock recorded in your accounting system. Make sure there are no differences between the physical inventory count and the accounting records.