Inventory Cycle Count Techniques and Templates
Companies should have precise inventory reports to plan their manufacturing operations, order raw materials and prevent using resources for unneeded inventory. The inventory cycle counting is ongoing actual inventory counting technique that lets you correct your reports and in addition determine any weaknesses within the inventory system. Experts in inventory management count the raw materials, parts and finished products and fix the inventory reports at the same time as they apply processes to prevent mistakes within the future.
When establishing cycle count processes and inventory system in a company, the organization should establish the technique for counting the inventory. The objective would be to count part of inventory monthly or weekly to assure every part in stock is counted at the least after a year. Organizations might count certain components more compared to other inventory.
The company might count inventory based on the location within the organization both by department within the organization or by location within the inventory place and warehouses.
Companies might also count raw materials and components in companies based on the value and the rate of how they are used. Inventory cycle counters might count the units with higher value more often typically at the same time as these units that get more use within the organization. Units that manufacturing uses typically has high chance of the incorrect inventory counts.
Organizations might also rank components for counting based on their particular sales. Components which are not used typically might only show up on the cycle count after a year while some other components might get count even monthly or weekly.
When a cycle counter finishes the actual counting of units and components, the following step would be to balance out the inventory reports. Entering counts in the inventory list and fixing the report will balance out any count.
Inventory management specialists would also investigate any big inventory changes prior to fixing the inventory reports. The inventory cycle counters should establish specific reason and cause for any big or higher-value changes from period to period.
Certain causes for the inventory variances might involve work in process transactions, for example like shipments, deliveries or manufacturing flow, errors based on previous counting or simply misplaced inventories within a warehouse or in some cases waste and scrap inventory.