Cycle counting is a method of keeping track of inventory where workers count a small portion of items regularly, rather than counting everything at once annually. It's like checking your wallet every day instead of counting all your money once a year. Companies use this approach to make sure their computer records match what's actually on the shelves, catch errors early, and keep operations running smoothly. This is different from the traditional annual inventory count where a business shuts down to count everything at once. Other terms for this include "perpetual inventory counting" or "periodic inventory verification."
Managed Cycle Count programs achieving 99.8% inventory accuracy
Implemented daily Cycle Count procedures across 3 warehouse locations
Trained team of 12 associates on Cycle Count and Physical Inventory processes
Improved accuracy from 92% to 98% through structured Cycle Count implementation
Typical job title: "Inventory Specialists"
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Q: How would you design a cycle count program for a warehouse with 10,000 SKUs?
Expected Answer: Should explain how to categorize items by value/importance (ABC analysis), set counting frequencies, establish accuracy targets, and create procedures for investigating and correcting discrepancies.
Q: How have you improved inventory accuracy through cycle counting in your previous role?
Expected Answer: Should provide specific examples of implementing or improving cycle count programs, including measurable results like accuracy improvements and cost savings.
Q: What factors do you consider when scheduling cycle counts?
Expected Answer: Should mention item value, movement frequency, physical location, staff availability, and operational impact. Should also discuss how to balance counting needs with daily operations.
Q: How do you handle discrepancies found during cycle counts?
Expected Answer: Should explain the process of investigating differences, documenting findings, making corrections, and implementing preventive measures to avoid future discrepancies.
Q: What is the difference between cycle counting and annual inventory?
Expected Answer: Should explain that cycle counting is ongoing throughout the year focusing on smaller sections, while annual inventory counts everything at once, usually requiring operation shutdown.
Q: What basic steps do you follow when performing a cycle count?
Expected Answer: Should describe preparing count sheets, conducting physical counts, recording results, comparing to system numbers, and reporting discrepancies.