What is the purpose of Cycle Counting in inventory management?

The purpose of Cycle Counting in inventory management is to ensure accuracy without the need for a full count. This method involves regularly counting a subset of inventory items on a rotating schedule throughout the year, rather than conducting a complete physical inventory all at once. By focusing on a smaller portion of stock at a time, organizations can identify and rectify discrepancies, ensuring that inventory records are up-to-date and accurate. This helps in maintaining the integrity of inventory data, which is essential for efficient supply chain operations.

Additionally, it minimizes disruption to normal operations since the counting process can be more easily integrated into daily activities. Regular cycle counts can also help in identifying trends or issues with specific items, which can inform better inventory management practices moving forward. Thus, cycle counting serves as a crucial strategic tool for improving inventory accuracy, operational efficiency, and accountability within inventory management systems.