Better productivity . It will no longer be necessary to close a warehouse to count items.

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It is also a safe bet for inventory management. Counting a specific portion of inventory at regular intervals is perfectly suited to companies with a large number of items in stock and whose inventory changes frequently. Regular partial inventories can help correct stock errors in real time. When selecting items to inventory, the turnover rate is very important, as are the size and type of reference.

The cycle count can be sweden phone data easily adapted to your needs. Several methods can then be chosen. The ABC method (based on the Pareto principle) implies that 20% of the references represent 80% of sales. The warehouse manager will have to classify the items according to their frequency of sale. "A" will correspond to the most sold items. "B" will correspond to the middle items. And "C" will correspond to the least sold. The "A" items will obviously be counted more often.

In addition to the ABC method, it is also possible to use cycle counting and random cycle counting. The former is very useful when the company is starting out with cycle counting. Choosing a specific range of items allows you to become familiar with this inventory without having to commit to a full inventory. The random method is ideal when the items have similar characteristics that can make it difficult to distinguish them. This way, all items will be counted, even if differentiation based on turnover, size or value is difficult.

To facilitate cycle counting, integrating technology is a good idea . It will be possible to schedule regular counts via warehouse management systems (WMS). Barcode scanners are also very useful, as is radio frequency identification (RFID). The counting of items will then be faster and more accurate. Cycle counting can also be done via inventory software. It will count stocks periodically throughout the year.

Other benefits of cycle counting:

Alleviation of constraints related to carrying out the inventory;

No more out of stock;

Quick error correction.

To set up the rotating inventory, it will be useful to have a very good organization and an optimal classification of the items. This rotating inventory can replace the annual inventory provided that the items have been listed at least once a year. It can also be coupled with the annual inventory for greater reliability.

What is the status of stocks in the case of a rotating inventory?
Monitoring inventory status is crucial. The challenge is to avoid running out of items, but also to avoid surpluses that lead to additional costs. To do this, it is necessary to know your production cycle well, to quantify your needs well and to accurately account for the quantity of products. It is then useful to take into account a slight safety margin. It will also be necessary to know the duration of the production cycle to adapt the stock of items.

Monitoring the stock status is therefore essential, because too little stock can cause irregular production. Too much stock will cause cash flow problems.

With rotating inventory, it will be easier to monitor the status of your stock and better control it.

How to implement a rotating inventory in your business
If you want to set up a rotating inventory to have a better organization of your stocks, it is quite simple. You can obviously call on an expert in the field, such as a person who has obtained an MBA supply chain Paris . This person masters the techniques and technologies, but can also have the ability to create effective dynamics.

You can also use your own resources and follow different steps to do so.

Analyze your stock
This will allow you to better understand your organization and the turnover rate of your items.

Rethinking your organization
It is important, even before setting up the rotating inventory, to choose the different criteria that will be used :

Methodology;

Frequency ;

Teams mobilized;

Tools needed.

Using the right digital tools
Properly equipping yourself is essential for this type of inventory. A specific internal organization is necessary . You will then have to create groups of items to be counted, send the counting list to the different operators in charge and instantly update the stocks. Different applications can thus be used, such as, for example, EvoInv or Evolubat).