It’s often said that entering new situations without any expectations can be beneficial. While having some prior knowledge can be useful, there are times when it’s better to remain uninformed to avoid biasing your own opinions. Cycle counting is one such scenario where it’s advantageous not to know the status beforehand, allowing you to conduct your investigation impartially and produce fair reports.

What is Cycle Counting?

Cycle counting is an inventory management process where operators count a small portion of inventory without prior knowledge of expected quantities to ensure accuracy, identify discrepancies and prevent potential errors.

Warehouse operators should initiate cycle counts at regular intervals and supervisors should then review the count results to protect the integrity of warehouse operations. Based on the variance level of the count, supervisors then decide whether to accept the count or perform a recount. 

Various counting methods provide the flexibility to perform counts seamlessly during ongoing operations. There are three types of cycle counting supported by ShipHawk:

• Directed Cycle Counting
• Manual Cycle Counting
• Short Pick Cycle Counting

Directed Cycle Counting

With directed cycle counting, the WMS guides the warehouse operator through the count process, instructing them through the sequence required to count specific bins. 

While the WMS drives the process, the operator still has some autonomy over which recounts they perform. This is done by applying various filters to narrow down the options, including:

• Specific bin, aisle, or area of the warehouse
• Specific Item or Item Family
• Bin inventory threshold
• Specific count plan
• Recount threshold
• Bins with no activity
• Empty or non-empty bins

If there is a variance in the count, it will show up on the Resolve Count Discrepancies page and a supervisor will review it.

Manual Cycle Counting

Sometimes, an operator may notice a bin quantity looks lower than expected or a fast-selling product demands high inventory that may be unavailable. In these cases, the operator can initiate a manual cycle count, where they simply scan any bin and perform a count right then and there. This is a very straightforward process requiring no preparation or direction from the WMS. If the count varies from the expected number, it will follow the same process as direct counts, with the WMS recording it on the Resolve Count Discrepancies page.

Short Pick Cycle Counting

Short pick cycle counting is used when an inventory discrepancy is detected, either during the move or picking processes. If there is not enough inventory available to perform a requested move or pick function, the operator will enter the quantity available to pick and the WMS will record the count into the resolve cycle line to be completed at the next opportunity. After the operator picks the available quantity, the WMS will assume that the location is empty and automatically create a cycle count with a quantity of zero.

Why is Cycle Counting So Important?

Cycle counting is crucial for your warehouse operations, providing accurate inventory levels and detecting discrepancies early on. Performing cycle counts consistently can eliminate halting operations with yearly physical inventory shutdowns, reducing disruption to your operations. Additionally, by conducting counts regularly, your business can continue operations uninterrupted year-round and earn customer satisfaction and loyalty. 

Using a WMS like ShipHawk that includes a variety of cycle counting types ensures that your warehouse is covered by both automatic checks and manual audits when necessary. Save money and prevent future mishaps by scheduling a time to speak to a shipping expert at ShipHawk today!