Where’s My Damn Widget? – 5 Steps to Improved Inventory Accuracy Using a Cycle Counting Program
Inventory accuracy is a key organizational capability for any manufacturer and distributor to assist with both maintaining a reasonable level of inventory on hand while also not expending scarce cash resources on excessive amounts of inventory. Much of the issue derives from weak business processes around managing the movement, receipt, shipment and disposal of inventory. Does your business conduct a full wall-to-wall physical inventory on an annual basis? Doe your business conduct more than an annual full physical inventory? By implementing a cycle count program you will see the following: 1) obviate the need for full physical inventories; 2) gain regular insight into the performance and metrics around how inventory is managed within your business; and 3) institute a more continuous process improvement culture that will pay benefits well beyond just inventory management.