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. 

Client Multiple owner-operated businesses across chemical manufacturing, furniture, building supplies, and small retail. The challenge These businesses had an ERP in place, but replenishment still behaved like a manual process. Stock decisions were often driven by gut feel, firefighting, or whoever noticed a problem first. 

That created predictable symptoms: 

• Stockouts and backorders that disrupted customer service 

• Expediting and urgent purchasing that increased cost and stress 

• Low confidence in lead times and availability, 

which made planning unreliable What we did We rebuilt replenishment so the ERP functioned as a true inventory control system, not just a record-keeping database. 

Depending on the environment, the work typically included: 

• Correcting and standardising lead times so planning reflected reality 

• Implementing reorder logic and replenishment rules that matched actual consumption 

• Establishing clearer stocking targets so ordering decisions were consistent and repeatable 

How we approached it We focused on operational behaviours as much as system configuration. The goal was to change ordering habits so decisions were driven by data and agreed rules, rather than intuition. 

That meant: 

• Making replenishment signals visible and trustworthy 

• Ensuring the rules were practical enough that teams would actually follow them 

• Reducing reliance on a single person “keeping an eye on things” 

Results Across these engagements, the most meaningful outcome was improved serviceability. 

• Fill rates improved because stock was available and ready to ship when customer orders were placed 

• Teams spent less time reacting to shortages and more time executing planned work 

• Replenishment became more consistent, which reduced avoidable urgency in purchasing and production 

Why it matters Many small and mid-sized manufacturers and distributors already have an ERP. The difference between constant stockouts and stable fulfilment is usually not the software. It is whether replenishment rules, lead times, and day-to-day behaviours are aligned