Why do we cycle count?
Posted on: February 10, 2017 | By: Andrew Hall | QAD Business Process
One of the key processes that Logan Consulting preaches to all clients is the implementation of a formalized cycle counting program. Though businesses typically understand the importance of such a process, they often misunderstand the true purpose of cycle counting. Yes, the goal is accurate inventory balances, but the goal is long-term, not short-term. What does this mean? The goal is not to make inventory accurate in the immediate term by counting and updating balances, though certainly this happens. The true goal is identifying the root cause of inaccuracies that are identified through counts and then implementation of corrective actions to prevent the causes of inaccuracies in the future. QAD provides a the necessary reporting and transaction set to execute a cycle count process, but the root cause analysis and corrective action development are not software functions. But, they are the most important steps to ensure true, long-term inventory record accuracy.