Step-by-Step Guide to Stock Cycle Counting with Online Tally Counters

Excel guide to help count your stocks with the Online Tally Counter

Simplify warehouse inventory audits, reduce stock reconciliation mistakes and become a pro with manual cycle counting.

Wall to Wall Audits are seldom as effective as Stock Cycle Counting.

Retailing companies and distribution warehouses have been sacrificing for years to the caudillo of the annual physical counting. Turning down distribution for an entire weekend, paying overtime to the overwhelmed employees and trying to scan through hundreds of thousands of SKUs in a 48 hour frenzy always yielded unreliable results. In real-life supply chain operations, it is rare to see the use of an annual shutdown and the prevailing method is Continuous Cycle Counting, which involves auditing small and targeted sample areas daily or weekly. In this handbook, let's look at the various ways that online tally counters create more effective cycle counting accuracy.

The ABC Inventory Stratification Framework

Prior to using a counting clipboard or tablet, inventory managers use the Pareto Principle (or the 80/20 rule) to classify warehoused items into one of three inventory categories: - Class A Items: The 10-20% of SKUs with 70-80% of the inventory value. The inventory can then be broken down into Class A, B and C items; Class A Items: The top 20% of inventory in SKU count, representing 30% of value, cycle counted often (Possibly every two to four weeks). Class B Items: The top 15% to 20% of inventory by SKU, but less than 30% by value, cycle counted quarterly. Class C Items: The remaining 50% of low cost inventory (low/no value) cycle counted semi-annually. Auditing teams use human verification resources at the greatest financial risk, which is where high impact inventory is found.

To Set Up the Multiple Counter for Aisle-by-Aisle Audits

TallyCounter Pro's Multiple Counter tool is designed for Perfectly for warehouse floor audits. Instead of using loose sheets of paper that leave a residue of grease off floors or paper smeared on forklift docks, audit teams set up their counters by physical location: 1. Organize each warehouse aisle or pallet racking area into its own category (for example, "Aisle 4 — Pallet Rack B"). 2. Make unique counters for a particular SKU or bin location. 3. Set the Step Size based on the packaging size (e.g. master case = +12, loose shelf eaches = +1). 4. Tap the plus button to count any shelving with immediate audio feedback while the auditor is inspecting the physical shelving.

Physical Tallies vs ERP System Quantities

After completing physical count for an aisle, the Auditor verifies a digital subtotal result with a theoretical result that was input in the company's Enterprise Resource Planning (ERP) or Warehouse Management System (WMS). It is certified if the variance falls within tolerance limit (usually ±0.5% for Class A Items). A second independent counter conducts an immediate blind recount if there is an unacceptable difference between the two, to isolate the discrepancy between the two counters to either misplacement, receiving documentation or physical theft.

Compliant export of the Clean CSV Spreadsheets for finance.

The timestamped verifiable proof of physical count verification is needed by internal compliance auditors and external accounting companies. With TallyCounter Pro, you can export CSV right from the Multiple Counter interface with one click. All metadata, such as counter names, category location labels, verified quantities and step configurations, are included in the downloaded file and can be instantly imported into the Microsoft Excel, Google Sheets or ERP Inventory Reconciliation module.

To warehouse count using zero error methods, adhere to five basic rules.The essential 5 Golden Rules for Zero Error Warehouse Counting.

To assure clean inventory throughout the team, observe these fundamentals: 1. Do not guess or estimate partial boxes - open boxes and check inside. 2. Marked pallet locations with high visible audit stickers, to prevent over counting. 3. Lock and freeze movement in the target aisle when the count is actually on-going, to avoid any in-flight picking errors. 4. Sequentially count objects from top to bottom, left to right. 5. Save back ups of your digital counter layout at the end of each shift with TallyCounter Pro’s Backup JSON utility.

Often Asked Questions (Detailed FAQ's)

How does TallyCounter Pro make sure counts are accurate when I'm a-tapping out of here like them?

If I close the browser tab or restart my device, do I lose my tallied counts?

Doug Schetren and Lula Baturay shared a lesson at the 2018 North American BoatU.S. Show.Doug Schetren and Lula Baturay provided a lesson at the 2018 North American BoatU.S. Show.

Does the usage of these counter tools incur some monetary penalty or obligate the user to register?

Operating Checklist & Summary Takeaways:

On each counting project keep this handy procedural checklist handy to help you produce the best results:

Right Tool:

Use the Single Variable Speed Counter; use the Multiple Counter for multi-category audit and use the Digital Tasbih Counter for spiritual awareness.

Test Sensory Feedback:

Make sure audio clicking and/or haptic vibrating is on order to get immediate confirmation of each count in your brain.

Use Keyboard Hotkeys:

Count as fast as possible on the laptop or desktop computer using the spacebar instead of the mouse.

Backup Your Data:

Back up your data using the built-in JSON backup and CSV export tools, to create permanent data in multi-day projects or mission-critical inventory counts.

TallyCounter Pro remains to provide users all over the world fast, free and privacy-focused counting solutions. Try our counters today and work more quickly and accurately with digital precision.

An Inventory Discrepancy Root Cause Analysis is the definition of the problem: “Why is inventory different from what is expected?”

If an actual cycle count reveals a discrepancy between the actual physical count on the clicker and the theoretical count in your Enterprise Resource Planning (ERP) system, inventory auditors should NOT just create an adjustment without investigation. There are 4 basic causes of systematic inventory shrink and accuracy errors:

Documentation Lapses:

Inbound shipments were mishandled at the loading dock to show quantities within ERP from day one, despite there being a deficiency in the supplier.

Misplacement & Unit Migration:

Cartons may be misplaced and stored in the wrong bin locations in high velocity warehouse environments. Before dismissing lost stock, tallycounter pro's search filter lets auditors easily confirm the previous or subsequent bins.

Units of Measures (UOM) Confusion:

Warehouse pickers might end up picking master update (12 units) when they are meant to pick an each, and the inventory gets distorted quickly.

Damage and Breakage Other than Officially Scrap Manifested:

Undocumented damage such as forklift collisions or damage to carton stock that was necessarily thrown off line without documenting the damage on the appropriate scrap manifest.

Regular, structured cycle counting by using TallyCounter Pro deals with these operational issues before they start causing chargeable backlogs in the supply chain and improve the fulfillment fulfillment satisfaction of customer.