Cycle counting

Cycle counting is the process of counting inventory items throughout the year on a schedule, so that all items are counted at least once a year. The main focus is on items that move frequently, with less attention given to items that move less frequently. The cycle counting process is efficient, because it lets you break up inventory, so you do not have to do a complete physical inventory all at one time.

In addition, the process uses employees who are familiar with the inventory and warehouse locations, and helps to uncover any processes that can produce inventory inaccuracies.