Managing Inventory With Cycle Counting

The end of a fiscal year is an exciting time for most organizations. Among other things, there is a push to collect receivables, pay vendors, evaluate accounting estimates and start planning for the next fiscal year. With an established cut-off date, the year-end financial statements provide a window into the successes and failures of the organization. It is safe to say that there is one particular component of year-end that most manufacturers dread: the inventory count!

Because the purchase and sales of goods cannot be interrupted during these procedures, the inventory process can be difficult to coordinate. Instead of counting inventory periodically, manufacturers should explore the opportunities with adopting cycle counting.