Cycle Count
A perpetual inventory auditing method where a small subset of stock is counted on a rotating schedule each day, rather than shutting down for a full physical count.
Full definition
A cycle count is an inventory accuracy technique where a portion of stock is physically counted every day on a rotating basis, so the entire inventory is verified over a cycle (typically 30-90 days) without ever shutting down operations for a wall-to-wall count. In Indian distribution, cycle counting is the antidote to the painful month-end stock-taking that forces godowns to halt billing for 1-2 days while staff count every case by hand.
The counting schedule is usually driven by ABC analysis: A-class SKUs (top 20% by value, often 80% of revenue) are counted weekly, B-class fortnightly, and C-class monthly. For perishable categories like dairy, cycle counts also verify batch-level shelf life compliance, catching near-expiry stock that should be pushed for immediate sale or marked for return.
A mobile-based cycle count workflow on the app assigns daily count lists to warehouse staff, captures scanned quantities, auto-compares against system stock, and flags variances exceeding a threshold (typically 1-2%). Persistent variances on specific SKUs or in specific zones point to pilferage, receiving errors, or billing mistakes, enabling root-cause action rather than blanket write-offs at year-end.
Real-world example
A Godrej Consumer Products depot in Bhiwandi counts 50 SKUs daily on rotation, completing a full cycle every 45 days, and has reduced annual shrinkage from 2.1% to 0.6% since adopting the practice.
Where it applies
Applicable industries
This term is relevant across the following SpireStock-supported industries.
How SpireStock handles it
Related SpireStock features
The concepts described above are implemented end-to-end in these product modules.
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