Cincinnati, OH -- (SBWIRE) -- 05/26/2010 -- There are two ways to count inventory, cycle counting and a physical inventory. Cycle counting is quicker, more accurate and less disruptive than a physical inventory. Cycle counting involves counting a small sample of inventory at various times throughout the year, while a physical inventory involves counting all the inventory at one time, usually 1-2 times in a year. The company typically shuts down the facility for a day or more, so no orders are being shipped during that time.
In the May issue of Warehouse Management News, http://qcsoftware.com/PDFs/Newsletter_May_2010.pdf, QC Software looks at Cycle Counting: Tips and Benefits. According to Rich Hite, President, “We all know what happens when inventory records are inaccurate: 1) shortages and the inability to locate inventory result in lower productivity, more expedited orders, and fewer on-time deliveries 2) too much inventory results in increased costs and inefficiencies. The bottom line is lost revenue and higher operating costs. So counting inventory is important for maintaining accurate records as well as optimizing your business.”
Inventory errors usually occur because of inadequate training, bad units of measure, inadequate storage, late reporting of transactions, or locator system problems. To prevent future problems, companies need to find out where and why errors occurred.
Cycle counting allows companies to find the root cause and correct process errors. This will help to identify problems in other areas, such as receiving, put-away, or replenishment, so it is necessary experienced people who are familiar with the facility and understand the products and numbering system. Although it is more difficult to find the root cause when performing a physical inventory, most companies still use both methods.
With this in mind, a flexible software application is needed that will accommodate multiple methods of counting to ensure accuracy. The technology application should also provide reconciliation reports and the ability to track all cycle count history for auditing purposes.
Hite insists, “When a company performs a successful cycle count, they accurately track inventory as well as improve many aspects of your operation. Continuous improvement is always important, but in today’s economy, it is essential.”
The WCS solutions provided by QC Software enables companies to streamline their warehouse operations with the lowest total cost of ownership in the industry ensuring increased corporate profitability.
QC Software (www.qcsoftware.com) is the leading provider of Tier 1 warehouse control systems to the warehousing and distribution industries. Since 1996, QC Software, utilizing state of the art technology combined with extensive research, development, and rigorous testing, has developed the QC Enterprise suite of products. Designed to be modular in nature, easily configurable, and platform independent, this highly scalable solution satisfies the needs of any size warehouse.
QC Software, Inc.
http://www.qcsoftware.com
Jerry List
JerryList@qcsoftware.com
(513) 469-1424