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A Guide to Implementing a World-Class Cycle Counting Program

Implementing a comprehensive cycle counting program can result in operational efficiency gains of anywhere from 5 to 10 percent. The benefits achieved from a well-executed cycle counting program—lower operating costs, improved service levels, improved shipping accuracy, and lower inventory levels—are hard to ignore. It is more costly to address inventory discrepancies after they have had a negative impact on the operation than it is to resolve them proactively. The ultimate goal of a cycle counting program is to achieve an absolute bin (location) level inventory accuracy of 97 percent or greater, eliminate the need to do wall-to-wall physical inventories, and to achieve this with the most efficient use of resources possible.

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