Taking inventory counts can be a tedious but absolutely necessary task for product-based businesses. Often a time-consuming chore, counting inventory can sometimes even require the business to suspend operations or close temporarily. Even if it is a job that employees are not particularly fond of, keeping accurate tabs on stock levels is crucial for reconciling physical inventory quantities, identifying causes of shrinkage, ensuring stock levels are where they should be, and for tax purposes. Fortunately, taking an inventory count as we enter a new year of business can be less time-consuming using cycle count software.
Cycle count software provides customization
Taking inventory with cycle count software differs from traditional methods and offers several advantages. One of the most significant – how much less disruptive it is to conduct inventory counts with a software providing cycle count capabilities. With a cycle count software, inventory is counted in an incremental method. All inventory is recorded in sections over time, rather than all at once. Businesses choose when to perform counts, which specific SKU’s to be counted, and how frequently the process is repeated. Determining how often counts are conducted depends on the nature of the business itself and the products sold. Businesses can reduce operating costs with the ability to customize the time of the count and the products counted. Improved preparation for cycle counts reduces the potential need to pay employees over time and avoids a partial or full shutdown of operations.
Implement barcode technology in the warehouse
Utilizing cycle count software along with mobile barcode technology is typically one of the fastest methods of return on investment associated with inventory management. Mobile barcoding capabilities provide improved accuracy, more efficient usages of labor, and make performing cycle counts easier and less time consuming. Cycle count software with barcode technology is a progressive step towards a more streamlined and efficient use of time and labor for inventory management functions.
A 2019 Zebra Technologies study reports that 61% of decision makers plan to enable partial automation or labor augmentation with technology in the warehouse.
Spot discrepancies faster + maintain accurate reports
Traditional yearly audits involve manually counting all inventory in one session. Halting business to access the entire inventory isn’t ideal in most cases and can potentially leave room for more errors in reporting. Cycle count software enables inventory levels to be recorded more frequently without disrupting the flow of business. Conducting counts more frequently identifies errors in a timelier manner, allowing for corrections to be made before they become compounded over time and difficult to manage. Whether inventory is damaged, misplaced or miscounted, discrepancies between actual stock and stock available for sale are resolved sooner. Additionally, historical data from past cycle counts helps identify reasons for shrinkage and promotes overall warehouse organization.
Improve business decisions + increase customer satisfaction
Access to accurate, real-time data – the result of inventory recorded with a cycle count software – enables businesses to make better purchasing decisions. Both over-buying and stock outs can be costly mistakes, however both undesirable scenarios can be minimized when inventory data is as accurate as it can possibly be. Cycle count software provides businesses with each SKU’s purchasing pattern data. Knowing how frequently an item is sold to a customer is beneficial to merchandisers and provides the information necessary to prevent missing fulfillment, lost sales and customer service nightmares. Customer service access to real-time inventory data contributes to higher customer satisfaction rates and increases the chances of long-term business relationships with customers.
Acctivate for QuickBooks
Inventory and cash flow go hand in hand, and it is imperative for a business’ inventory, order management and financial system to be accurate and in sync. Acctivate’s bi-directional integration provides the tightest integration available with QuickBooks, allowing continued use of QuickBooks while expanding inventory and order management capabilities.
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