5 Tips For Integrating an Effective Cycle Count System

Creating a cycle count system and integrating it intotracking should be closed. All activities that will influence
your small retail shop will help you maintain an accuratethe stock, including restocking and backstocking, should
inventory. Rarely, if ever, do the megastores and massalso be finished before you begin counting. If you have
merchandisers close their doors and record every itempending customer orders that have not yet been filled,
on their shelves. They don't need to because theythose too, should be completed. Otherwise, your cycle
cycle count throughout the year. Doing so helps themcount will yield inaccurate numbers.
reduce their level of shrink and identify discrepancies#4 - Track Stock Changes During Store Hours
more quickly than would be possible by doing a fullIdeally, you'll be able to finish counting your stock
physical inventory.before opening your store to customers. If you're
As a small retailer, you already realize the importanceunable to do so, you'll need to track changes in the
of reducing your shrink. You also realize the value ofcategories you're counting, especially for high-volume
counting your stock accurately. In this article, I'll provideitems. This is not limited to items that customers
five tips for integrating a cycle count system that willpurchase; you must also watch the movement of
deliver both benefits.merchandise across the floor as customers pick up
#1 - Follow A Scheduleitems from the shelves and carry them. If you neglect
A cycle count system can only work properly if youto do this, you'll run the risk of under-counting that
make it a part of your normal routine. If you plan to docategory.
it daily, make sure you do it daily. If weekly, then do it#5 - Begin Gradually And Build Momentum
weekly. Too often, small retailers perform itIf you have never completed a cycle count rotation,
sporadically, whenever they - and their employees -start out slowly by counting items in low-turnover
have time available. That reduces the level ofcategories. That will give you an opportunity to grow
accuracy you're trying to achieve while opening theaccustomed to the process while learning how to
door to increasing shrink. Make a commitment andtrack your stock with your inventory software. Don't
stick to it.feel pressured to complete an entire rotation. Instead,
#2 - Categorize Your Stockinvest the time during the beginning to increase your
Some of the items you carry will turn over far moreconfidence level with slow-moving items and build
quickly than others. The faster turnover can increasemomentum as you go. By the time you're ready to
your exposure to shrink and inventory discrepancies. Acomplete an entire rotation, you'll have a firm grasp of
cycle count allows you to record segments of yourthe process.
inventory through a rotating program. That is, ratherIntegrating a cycle count system will eliminate the need
than doing a full physical inventory during whichto conduct a full physical inventory. What's more, it will
everything is counted at once, you and your staffallow you to track your stock with far more accuracy.
would only count specific segments. Categorize yourNot only does that reduce your shrink, but it also gives
inventory according to sell-through; items that turn overyour employees more confidence in your inventory
more quickly should be counted more often.program when they help customers. Use the five tips
#3 - Close Out And Start Freshabove to incorporate cycle counting into your small
By the time you and your employees begin counting, allretail shop.
pending transactions that affect the categories you're