Benefits of Cycle Counting
Here are 3 additional benefits you can expect from cycle counting:
1) Keeping track of inventory movement
Cycle counting does not just increase inventory accuracy, it can also identify inventory issues faster and reduce the need for inventory auditing.
Many companies start out with paper-based systems, like RF-SMART customer Kateeva. They did not yet have an inventory management system in place, so everything was done manually. Counting could take hours, which often meant they get done quarterly, at best.
For Kateeva, there was a significant lag between data points for their inventory management and accounting systems, which is common for teams with manual processes. This made it impossible to know the number of items they had, where they were, and when they got there.
By implementing RF-SMART's Cycle Counting, Kateeva can now run counts on a dependable schedule and count double the inventory in 50% less time.
2) Minimizing risk for loss of inventory
Cycle counting reduces the risk of human error by performing more consistent daily counts that automatically update every time an item is scanned. This eliminates staff having to physically rope off areas that might get tampered with after manually counting.
RF-SMART customer Noonday Collection used daily cycle counts to catch inventory discrepancies sooner rather than later. Since accurate inventory counts are the basis for all other inventory processes, such as picking, packing, and shipping, those inventory discrepancies were impacting their bottom line.
After implementing RF-SMART, loss due to inventory variance improved significantly. Accurate and real-time cycle counting is imperative for inventory control for companies like Noonday that carry high-value items such as jewelry that may be prone to theft.
3) Improving customer service and warehouse efficiency
By focusing your efforts on improving your warehouse operations, you are laying the foundation for optimal customer service. When your customer is expecting a product, efficient order fulfillment and a timely delivery can positively impact your customers’ experience.
Using RF-SMART Cycle Counting, Midwest Equipment has the exact on-hand quantities in their inventory they need to execute an efficient, on-time fulfillment process. As a leader in customer service and support, they are able to reduce mis-ships and ensure speedy, on-time delivery to their customers. Post-delivery, those higher customer satisfaction rates then led to better customer retention and a longer lifetime for their business.