|
So what is spiral counting? Simply put, it's an alternative to the usual manner in which inventory is counted. Instead of conducting a taxing yearly physical count with all the self-proclaimed items in your store plus warehouse, you conduct daily or weekly counts on several of the items, such that all merchandise are continuously counted, several times per annum. Cycle counting is process of regular assessment of your inventory. This is extremely a factor for large stores because unlike lesser stores or retailers, they aren't able to regularly count all their products on hand items cost effectively. Therefore, they cycle count a compact portion of their inventory to make sure that the information pertaining to their inventory is accurate plus any discrepancy is fixed immediately. This also helps them precisly identify and investigate underlying problems that result in inventory record faults, thereby fixing the root root of the problem. Businesses can design their cycle count program based for available resources and accuracy important. This approach ultimately improves the efficiency however staff responsible for handling products on hand, as they are constantly cognizant of the need for accuracy as a consequence of regular audit of their methods and procedures. The major benefit from inventory cycle counting includes: i) Superior Inventory Accuracy Cycle counting ensures that every single items in your inventory is counted more than once a year. This brings an improvement in the overall accuracy of your inventory data and significantly improves the inventory skills while in the management of the business. Using this method is necessary for the correctness assessment of inventory, because errors can occur in a great many areas of the business for example sale process, planning and appointment scheduling, receipting and dispatching. These errors ultimately create problems while in the operation and supply of products and solutions, resulting in late or early replenishment of your inventory, which affect sales operation, level of inventory and the image of your organization. ii) Pinpointing the Method of obtaining Inventory Error With the cycle count occurring fairly often, the inventory manager and the concerned people believe that it is easy to investigate the actual cause of the discrepancies in the products on hand record. This will help them in streamlining all around process of inventory management. If it relates to software problems or certain employees or almost every other such causes, inventory cycle counting ensures that the main cause of errors in the inventory details is identified quickly. iii) Higher Operational Efficiency Inventory cycle counting ensures the perfect arrangement and organization of the business inventory each time a cycle count shall be done. This means that your inventory is reviewed fairly often. This approach ultimately improves the efficiency and attitude of your staff responsible for inventory control. They realize the important factor they perform, their impact on inventory accuracy as well as need for well-documented processes. Cycle Add up Design Different experts have different perceptions in terms of a Cycle Count Design, but usually there are some essential elements that should be incorporated into an efficient design, as listed below: i) Mission of Count Areas To realize the count accuracy, it is superior to assign specialized count instances of the warehouse to cycle desks. ii) Report Printing To incorporate transparency and accuracy on the process, experts suggest not printing the inventory quantities to the report. The original quantities and variances are just revealed when all the required transactions were completed and verified. iii) Add up Frequency It is best to nominate the frequency of count based on the Items ABC Inventory Classification Code where A items are counted on a regular basis than the C Items. iv) Examination and Discussion Consult the inventory database to pinpoint the reasons why behind errors and share your findings together with the concerned warehouse manager and spiral counters. Try to identify underlying shapes of errors (if there is any) and construct solutions to avoid them. v) Inventory Audit To streamline the processes in making them error free, schedule inventory audit regularly plus disseminate the resulting information concerning all concerned employees to keep everyone on a single page. inventory cycle counting happens to be a must have for large and smaller businesses alike, but implementing it in equipment can only lead to additional inaccuracies and discrepancies. So, be sure you seek all the professional help you will need to get things done inside a systematic manner. If looking for any proper source then your location is InventorySkills.
Related Articles -
Cycle Count Procedure, Cycle Count, Inventory Cycle Counting, What Is Cycle Counting, Inventory Auditing,
| 
