Knowledge
Cycle counting methods and KPIs
Cycle counting is the practice of counting subsets of inventory on a rotating schedule so the warehouse stays open. East Africa teams use it to replace painful annual stocktakes, improve pick accuracy, and catch shrinkage earlier — especially when counts run on barcode or RFID handhelds.
Key takeaways
- ABC drives frequency
- Investigate before adjusting
- Track inventory accuracy % as a KPI
- Align finance and ops on adjustment policy
Methods
Control group counting validates process; opportunity-based counts happen during quiet slots; ABC counting prioritizes high-value SKUs. Blind counts (system quantity hidden) reduce rubber-stamping.
KPI to watch
- Inventory accuracy (locations matching system)
- Variance value and root cause mix
- Counts completed vs planned
- Time per location
Frequently asked questions
Does cycle counting work for pharmaceuticals?
Yes — with lot/expiry awareness and cold-room capable devices for chilled stock.