Physical inventory is a process where a business physically counts its entire inventory. A physical inventory may be mandated by financial accounting rules or the tax regulations to place an accurate value on the inventory, or the business may need to count inventory so component parts or raw materials can be restocked. Businesses may use several different tactics to minimize the disruption caused by physical inventory.
A cycle count is an inventory auditing procedure, which falls under inventory management, where a small subset of inventory, in a specific location, is counted on a specified day. Cycle counts contrast with traditional physical inventory in that a full physical inventory may stop operation at a facility while all items are counted at one time. Cycle counts are less disruptive to daily operations, provide an ongoing measure of inventory accuracy and procedure execution, and can be tailored to focus on items with higher value, higher movement volume, or that are critical to business processes.
The Painless Way to Conduct Routine, Periodic Inventory Counts
For retailers and others, cycle counting and inventory control management processes are necessary but can also harm a business’s bottom line if handled in the wrong way. With NPA you will never again worry about employee error, damaged materials, opening and resealing boxes, closing for business to count, or having to pay overtime. NPA simplifies this arduous task and delivers the most accurate results when verifying your inventory.
The simplicity of NPA cycle counting software allows even non-technical personal to conduct blind verification’s and general audits quickly and effectively—no more spending on overtime pay or hiring subcontractors to manually check inventory. Physical inventory counts are based on current inventory locations such as vans, trucks, or even sections of a large warehouse. You can spot check any time to track inventory shrinkage issues, missing inventory and more. Best of all, customers have told us that the NPA system has paid for itself after just one cycle count.