What are some effective inventory auditing techniques?

What are some effective inventory auditing techniques?

There are several effective inventory auditing techniques, such as cycle counting, physical inventory counts, and ABC analysis. Would you like to know more about any specific technique?

Can you explain cycle counting?

Cycle counting is a method where a portion of the inventory is counted on a specific day, rather than counting all items at once. This helps maintain accuracy and reduces disruption.

What is ABC analysis?

ABC analysis categorizes inventory into three classes: A, B, and C. 'A' items are high-value with low frequency, 'B' items are moderate in both, and 'C' items are low-value with high frequency. This helps prioritize management efforts.

How often should I perform these audits?

The frequency of audits depends on your inventory turnover and business needs. Cycle counts can be done monthly, while full physical counts might be done annually.