Inventory management is a big deal. You need to store it in properly, monitor lot/batch expiration dates, and be able to find it when you need it! A big part of finding it is keeping an accurate count.
When you count your inventory once or twice a year, each count takes lots of time, usually done in a hurry, sometimes with outsourced help and may reveal significant gaps comparing to the books. Frequent counts of parts of your inventory (cycle counts) is more efficient and improves overall accuracy.
In SAP Business One, you can setup cycles to be on any schedule you want. Then you assign the various cycles to
- Warehouses, or areas of a warehouse
- Groups of products
- Specific users assigned to count
When using cycle counting, the process is more efficient, takes less time and if inconsistencies are discovered, they are probably minor. Investigating the cause of differences revealed during a cycle count may prevent larger variances in the future.
IndustryWeek magazine reported benefits of cycle counting to include:
- Savings in personnel costs and plant downtime;
- More accurate inventory quantities;
- Reduced losses due to inventory shrinkage;
- More reliable financial reporting and conversion-cycle key performance indicators (KPIs); and
- Better decision making about reorder points, out-of-stock inventory and excess inventory
Who wants to count inventory over a holiday weekend when you can schedule your counts based upon the value or volume of goods in your warehouse to match the effort with the value of counting? With SAP Business One you are in complete control!