How to run a cycle count without closing shop
Published on
"Once a year, stop everything" is the most common approach to inventory counts, and often the most painful one. Cycle counting (counting a portion of stock regularly instead of all at once) solves both the shutdown problem and the accuracy problem.
The problem with a full annual count
Counting the entire stock at once means blocking the business, pulling the whole team off their normal work at the same time, and leaves a huge gap between two counts: a product counted in January can drift significantly by June without anyone noticing until the next annual count.
How cycle counting works
The idea: split the stock into portions (by category, location, or turnover rate) and count a small part regularly (every week or every month depending on catalog size) instead of everything once a year. The business never fully stops, and discrepancies get caught much earlier.
A good practice: prioritize the products that move the most (the ones with the most stock movements) or the highest-value ones: those are where an undetected error costs the most.
What actually makes it work
Cycle counting relies on a reliable movement history: otherwise there's no way to know what was actually counted and when. Every adjustment (the gap between theoretical stock and the physical count) needs to be logged as a proper movement, with its date and reason, not a silent correction of the number.
Frequently asked questions
?Do we still need one full annual count?
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Not strictly necessary if cycle counting covers the whole catalog over the year, but some local accounting or tax rules may require it. Check what applies in your country.
?How does Fluxalyo track inventory discrepancies?
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Every stock adjustment is logged as a dated movement attributed to the person who made it, with the full history available at any time.