The challenge
Annual stocktakes are disruptive and expensive. At the same time, many businesses still experience stockouts caused by incorrect stock levels, not true shortages. When inventory accuracy is unreliable, planning and purchasing become guesswork.
What we did
We implemented a practical cycle counting cadence that improved inventory accuracy while keeping operations running.
The program design:
• Weekly cycle counts • 20–30 SKUs per cycle
• Counts performed by the people closest to the inventory location (warehouse staff for warehouse locations, shopfloor staff for shopfloor locations) How we handled discrepancies
To keep the process credible and prevent “paper fixes,” we used simple, enforceable controls:
• Four-eyed counts (a second person verifies)
• Recounts triggered when discrepancies exceeded 10%
• Official reporting and follow-up for discrepancies larger than 10% by cost or quantity
Results
• Stockouts caused by incorrect stock levels reduced significantly
• Inventory became trusted enough to support better purchasing and planning decisions
• The business reduced reliance on disruptive full stocktakes by building accuracy continuously
Why it matters
Cycle counting works when it is operationally owned, consistent, and tied to clear discrepancy rules. The outcome is not just better numbers in the system. It is fewer surprises and more predictable fulfilment.
