The Importance of Inventory Audits: Cycle Counting vs. Physical Counts

Discrepancies between computer databases and actual shelf counts are inevitable due to damage, theft, or vendor errors. Regular inventory audits are crucial. Let's compare the two primary auditing methods.

Annual Physical Counts vs. Ongoing Cycle Counts

Annual counts require stopping operations to count everything, costing time and money. Cycle counting structures involve counting a small subset of inventory daily. The system schedules counts automatically, ensuring high-value items are checked frequently without interrupting operations.