The old school way to count your inventory and update the number in your system was to shut down operations for a week, usually Christmas – New Years, and have your team recount everything on paper and then key the results into your warehouse management system.
As George Costanza can attest, shrinkage happens.
Ah, the good old days. If we try to tell our customers “we’re not shipping anything until next week”, they’ll be buying on Amazon in less time than it takes to read our nice email to them.
There’s lots of other reasons why counting just once a year is a poor solution, but I’ll save you the time and jump to the solution.
Cycle counting is an inventory management procedure whereby you count some items without shutting down your warehouse. If your accountant asks, yes, it’s an accepted way to determine and report your current inventory and inventory value.
How to cycle count?
Cycle counts can be done on iPods or iPads. Here’s a short demonstration.
To enable cycle counts or change your settings go to https://app.shiphero.com/dashboard/cycle-count
Items that are in totes will show as a separate number.
How does ShipHero count better?
- We’re mobile, of course. No papers to tally and no guessing if you’re counting the correct item.
- Your employees get a goal of how many items they need to count for the week and they can see in real time how close they are to completing their goal for the week and when they are done.
- You as the supervisor can see in real-time how many items have been cycle counted and if your staff has hit or missed their goals (and by how much) for any given week.
- You can see in real-time the results of the counts and who made them.
- Your inventory is prioritized, so you’re counting the items likely to be wrong first.
- Want to check stock for a particular item, perhaps because you need to reorder that item? Hit a button on your ShipHero dashboard and that item will move to the top of the list to be recounted. No more calling down to the floor to have a count done. Reorder with confidence that the inventory in your system matches what’s on the shelf.