Cycle Counting – Corrective Action versus correcting transactions

Posted on: April 6, 2010 | By: SuperUser Account | QAD Business Process

It is very important that companies realize that the true purpose of a cycle count program is to identify the causes of invetnory inaccuracies and then put corrective actions in place. It is not to simply make correcting inventory transactions. I am sure that I have blogged on this topic before, but I think this difference gets lost in some organizations. If the effort isn’t made to identify the cause of inaccuracies and put corrective actions in place to prevent future issues, then inventory accuracy will not truly improve. Therefore, though QAD provides the tools to identify items to count, adjusting transactions, and audit reports, much of the heavy lifting of a true cycle count program occur outside the system. Organizations must dedicate the necessary resource(s) to track down the cuase of inaccuracies and then implement corrective actions. Without doing these crucial steps, your cycle count program is reduced to a “count adjustment program”, which does nothing to guarantee future inventory accuracy.

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