If your organization has to maintain inventory, you likely use either physical counts or cycle counts to do so. Physical inventory counts are typically done once a year and often require organizations to shut down while a full inventory count is done. This process is quite labour-intensive and time consuming. If you are a smaller organization and conduct your physical inventory count quickly, this may seem plausible for you. However, this method of inventory verification is quite disruptive to your organization's day-to-day functions. For larger organizations, physical inventory count is not always the most cost-effective nor the easiest to carry out.
With cycle counting, inventory counts can be done continuously through the year, and can even be conducted on a daily basis. There is no need to shut down your whole organization when you can do counts of smaller subsets of your inventory. When you are checking your inventory so frequently, it ensures your proactivity in determining any problem sources so you can correct the cause of that error—not just the error itself. Not only does this increase accuracy, it avoids disruptions to your organization and reduces overall operating costs.
To make your decision, ask yourself what is best for you and your company. If you have a small inventory, a yearly physical inventory may be all you need—it can be a great way to start off a new year. However, if you are a larger company, it seems that the benefits of cycle counting surpass in comparison to physical counting. Be sure to check out our next blog post about the benefits associated with Advantage Plus: Advanced Cycle Count integrated into SYSPRO technology. For any additional questions you may have, please do not hesitate to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..
