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Cycle Counting Procedure Made Simple: A Step-by-Step Guide

The purpose of this Cycle Counting Procedure is to establish guidelines and requirements for conducting Cycle Counting Programs across all business processes and sites. The purpose of Cycle Counting is to account for discrepancies amongst the quantities found in stocks. These quantities are in fact physically present in warehouses. Cycle Counting is recommended to maximize the value of audit and minimize the pain in physical count.

Excess and Obsolete Inventory Policy when implemented should offer:

  • This Cycle Counting procedure when implemented covers the root cause of inventory discrepancies and take timely corrective action to eliminate/reduce the future occurrence
  • Business prefers Cycle Counting over physical inventory counts as they are less disruptive to daily operations, provide an ongoing measure of inventory accuracy, and can be tailored to suit several items. 
  • Frequent cycle counting shortens the period of time between physical counts of any given item. This, in turn, will help to uncover prospects to completely diagnose the cause of any discrepancy and coach any human errors before systemic issues arise. 

The cycle counting procedure consists of 13 pages with the 3027-word count. Included as Microsoft Word and PDF format, so you can customize it for your own business 


Cycle Counting Procedure



An organization would normally close down during periods of stock-taking, to guarantee the process is completed within the shortest possible time. This process drives the consideration of timing in relation to affecting trades and overtime expenses. But Cycle Counting solves a number of these issues, as well as offering the following additional benefits:

  • Accurate and Better Decision-Making. 
  • Assist with Distribution, Production, and Stocking Decisions. 
  • Enhanced Customer Services. 
  • Minimal Staff Disruption. 
  • Minimal Process Disruptions. 
  • Quicker Corrective Actions.

Supplementary Inventory Management Policies & Procedure You Should have in your SCM Policy Book.

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