Automated Cycle Counting Versus Physical Inventory Counting

When it comes to managing inventory, methods vary, but choosing the right technique can be the difference between good and bad data for your company. Each company that produces or provides goods has a predetermined way of counting the products. To ensure everything is up to speed, most companies set aside a large portion of time at the end of a reporting period to have company employees physically count inventory. This manual method isn’t quite as hands-on as it sounds considering inaccurate results often occur. 

Issues that Arise from Physical Inventory Counting  

When conducting a physical count, discrepancies are common because employees don’t always accurately record the entirety of inventory, or accidentally classify products incorrectly.  

Aside from the physical counting process yielding inaccurate results, it is a strenuous method for employees as it requires excessive labor time and resources that could be useful for profitable opportunities. Along with the time and labor costs, physical counting does not address the root causes of why inventory variances occur. 

Problems Solved by Cycle Counting  

The best inventory counting practice depends on your business type and goals. 

If your goal is to cut overhead costs and improve operational efficiencies, automated cycle counting is the right fit for your business. As a business owner, you prioritize accuracy when it comes to counting inventory. Automated cycle counting uses system logic that: 

  • Ensures a high level of accuracy for inventory that matters to planning and customer service.  
  • Allows for frequent updates of high-value and high-velocity items without shutting down operations. 
  • Exposes broken processes through a component of the cycle count function and allows for increasing inventory accuracy. 

The Optimal Inventory Solution for Your Business 

By automating cycle counting, you can streamline counts, plug hidden spending leaks, and increase your team’s productivity without increasing your overhead costs. You can expect to avoid loss of profits due to inventory expenses and shutdown.

Through Attivo’s All-In-One, powered by SAP Business One, easy-to-use, affordable ERP solution you can eliminate inventory errors and missed transactions, while substantially reducing labor costs and increasing throughput. You can finally rest easy knowing you’ll be able to identify the location and maintain quality control, tracking inventory 24 hours a day and 7 days a week. Contact our ERP experts today for more information.