How to Make Accurate Inventory Counts

How to Make Accurate Inventory Counts? First, you must know your procedures. This includes restocking the shelves, receiving purchase orders, inbound transfers and closing and invoicing completed customer orders. While physical counting is relatively straightforward, it requires concentration, double checking and adhering to the system. Accuracy is best ensured by having two people count the merchandise separately. RF-SMART systems are also available.

Cycle counting

Many businesses struggle with inaccurate inventory counts, but cycle counting can help. The process replaces the annual comprehensive inventory with smaller, regular counts. Unlike manual counting, cycle counting can be conducted during normal business hours, so there is no need for a warehouse to close to count inventory. It also eliminates the need for an annual shutdown. It’s important to know how cycle counting works before implementing it in your warehouse. To get started, download our free ebook to learn about cycle counting.

Compared to physical counting, cycle counting is less disruptive for employees and customers. You only need to count a fraction of your inventory during a given cycle. Also, cycle counts are much less disruptive than a single, large count at year’s end. And because it’s more manageable, you can schedule cycle counts as part of everyday operations. In addition, cycle counting can be used to assign specific workers to areas that have large inventories.


Performing accurate inventory counts of SKUs is a key part of inventory management. For a high-profit-margin business, these products make up approximately 80% of total inventory. By contrast, low-profit margin products make up only 5% of inventory, and low-demand products make up the remaining 20%. Cycle counting, or the process of counting SKUs regularly, boosts accuracy. Companies can cycle count SKUs several times per year, or count them all at once.

IRI is a major source of inventory inaccuracies. A recent study of a large retailer found that 25 percent of SKU records were incorrect before it even opened its doors. While the exact cause of the errors is unknown, the problem can lead to out-of-stocks and a positive balance. Therefore, an effective inventory reconciliation program should focus on eliminating these inaccuracies. In addition, the accuracy of inventory records must be verified by independent experts and the business managers.

Units of measure

Units of measure refer to the way that you track the quantity of an item in an inventory system. Common examples of units of measure are “each” and “cases,” which describe the number of items in one unit. In other cases, the quantity is measured in terms of boxes, which contain 12 bars, or by pallets, which contain 144 bars. Then, you must convert these quantities to the appropriate unit of measure for the specific inventory item.

Accuracy is defined as the percentage of physical inventory locations that match the actual quantity or location. Accuracy can be expressed in either percent or dollars. Accurate inventory measurements can help you find patterns in the quantity or location of your inventory. In addition, inventory accuracy is crucial to your company’s financial health. If you do not have the tools to conduct a proper inventory audit, it may be difficult to stay up to date.


Using RF-SMART for accurate inventory counts allows businesses to schedule periodic cycles of inventory verification. These cycle counts provide information on product availability and pricing to sales associates, allowing them to better serve customers. With real-time bin transfers, these processes can help businesses maintain accurate inventory counts. A cycle count is also useful for validation of inventory when items are discontinued. It can also be used for other business processes. With RF-SMART Cycle Counting, companies can easily create a count for a particular item and filter it by class, department, and manufacturer to ensure accuracy.

The solution helps retailers automate the receiving dock, picking, and shipping process. The system’s integration with NetSuite means businesses can streamline their order management. The automated process of inventory replenishment can improve both ROI and customer satisfaction. By eliminating the need for manual counting, businesses can increase accuracy and streamline the fulfillment process. RF-SMART makes it easy to implement. These systems can also help you increase customer service and satisfaction with your products.


Having accurate inventory counts will help you manage your business better, including saving money and freeing up space in your store. Inventory counts are also critical during busy seasons, when businesses may lose money or customers due to low stock levels. Accurate counts will also help you manage reorders and manage your profits. And, as inventory represents a large investment for a company, mistakes can lead to overstating profits and higher taxes.

Before you start performing accurate inventory counts, you must organize your inventory properly. Even small e-commerce stores often skip this step. Organizing your inventory allows you to see what you have, and you can count more quickly. In addition, great organization requires an excellent inventory control system that includes detailed naming and labelling. Once you’ve mastered proper organization, you can start tracking inventory accurately and quickly. You’ll be glad you did!


Using the ABCD system allows for accurate inventory counts, as the classification process ensures the highest-value items remain in stock. Whether you are performing monthly counts or end-of-year inventory counts, the ABCD classification system ensures accurate inventory counts. The following are three ways to get better inventory control with ABCD. These are proven methods to help you do just that. Let’s examine each in turn.

The ABC method of inventory classification provides visibility into the total sales value of products. This method, however, does not indicate how many turns a certain SKU has. The ABC method prioritizes high-value and frequently-used items over less-value items. It is therefore crucial to have regular cycle counts to maximize profits. However, it can be difficult to estimate turn numbers when using the ABCD method. Fortunately, there are several ways to make it easier.

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