Methods
There are two cycle count methods: informed and uninformed.
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Informed Cycle Counts target specific locations and items. Warehouse employees receive count information before they start the physical count. After staff complete and verify their count data, the system updates inventory levels. The DVU user can generate a report that summarizes count discrepancies and inventory adjustments (if any). Informed cycle counting is compatible with barcode and paper-based inventory systems.
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Uninformed Cycle Counts do not specify locations or items before the count starts. Like a spot check, warehouse staff go to a location and complete a physical count with an RF scanner (Note: this counting method is not available on a paper-based system). Staff do not see the expected inventory level at any location on the scanner. Once complete, the employee leading the cycle count verifies the counts on the DVU platform. The DVU user can generate a report that summarizes count discrepancies and inventory adjustments (if any).
DVU users can enable a Double-Blind cycle count for either method. This requires counts by two warehouse employees before making inventory adjustments on the DVU platform.
Tip Davinci recommends a regularly scheduled cycle count. For example, count 8% of aisles weekly, so the entire warehouse gets counted quarterly. That way, if the company can show inventory is over 99% accurate, auditors can forego having to do an annual physical audit.
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