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Why Cycle-Counting is Better than an Annual Physical Inventory-Count

WH2-closedforinventoryBy Mark Tomalonis
Principal, WarehouseTWO, LLC

Mark often says that he is surprised by how often he gets an auto-response email from one of his wholesaler-distributor clients that states, We are closed today for our annual physical inventory count. Wow!

Why would a distributor be closed on a normal business day? Its competitors are not closed on that day. More importantly, its customers are not closed on that day.

Love-changeThat got him thinking. Why do some distributors still perform annual “wall-to-wall” physical counts of all on-hand inventory instead of “cycle-counts”, i.e., scheduled physical counts of a portion of on-hand inventory every week, throughout the year?

The only reasons that he could think of were: tradition and/or fear of change.

So for all the traditionalists and worry-warts out there, Mark lists four reasons why cycle-counting a portion of your inventory every week is better for your company than an annual physical inventory count.

Click to access the complete article and how to cut costs, get more accurate inventory counts, and have happier customers.

 

WTWO_logo_OfficialAbout WarehouseTWO
WarehouseTWO, LLC is an independent “inventory-sharing” service created exclusively for durable goods manufacturers and their authorized distributors, and for any group of durable goods “peer” wholesaler-distributors, such as members of a buying/marketing group or cooperative. To learn how inventory-sharing with WarehouseTWO can help your business, visit the WarehouseTWO website, or email info@warehousetwo.com.

About Tribute, Inc.
Trulinxlogo_NEWTribute, Inc. provides ERP business management software, TrulinX, for industrial distributors and fabricators in the fluid power, motion control, and automation industry and is integrated with WarehouseTWO to facilitate excellent servicing of your customer's inventory needs.