What kind of counts are performed to adjust inventory levels and verify stock?

Cycle counts are an inventory management technique used to regularly verify stock levels and ensure accuracy in inventory records. This process involves counting a subset of the inventory on a specific schedule, rather than conducting a full inventory count all at once. By systematically counting items on a rotating basis, businesses can identify discrepancies, update stock levels accordingly, and maintain accurate inventory records throughout the year.

This approach is particularly beneficial as it helps to catch errors or losses in inventory early on, minimizes disruption to daily operations, and can improve overall inventory accuracy. In contrast, shelf audits, sales audits, and inventory sweeps each serve different purposes; for example, shelf audits might focus on product placement and display adherence, while sales audits look at overall sales performance and compliance with pricing strategies. Inventory sweeps typically refer to broader inventory checks rather than the strategic and ongoing checks that cycle counts represent.