3 Reasons Why You Should Automate Your Cycle Counting Immediately

1. Manual Cycle Counts Drain Resources With Questionable Accuracy

In most warehouses, cycle counting is a key component of inventory management. Periodic inventory audits are supposed to lead to higher accuracy and ultimately, drive down overhead costs.

But what if they don’t?

Unfortunately, manual cycle counting is often fraught with hidden inefficiencies. Completing manual cycle counts drains resources, wasting time, labor, and money. Each manual cycle count takes approximately 2 seconds per item, at only 80% accuracy (or sometimes much less!).

At the end, your inventory visibility isn’t much better than it was before the cycle count started.

2. Automating Cycle Counts Increases Accuracy to 99.9%+

Mobile inventory solutions automate your cycle counting workflows through a combination of barcodes, mobile apps, and hardware. By automating your workflows, you reduce cycle count time to 0.6 seconds per item, significantly reducing productivity. You’ll also increase accuracy up to 99.99%. Doesn’t that sound better?

Cycle Counting Apps for Your ERP

RFgen’s inventory management mobile app suites include pre-constructed cycle counting workflows for major ERPs, which allows you to automate cycle counts by item, location, fixed assets, and more.

This includes cycle counting mobile apps for:

• SAP
• Oracle SCM Cloud
• Oracle’s JD Edwards
• Oracle E-Business Suite
• Microsoft Dynamics 356
• Deltek Costpoint

How Cycle Counting Automation Works

Consider this example of the RFgen cycle counting mobile app for SAP. Via their mobile device, your workers are walked step-by-step through the cycle count workflow:

1. The user scans, enters, or searches for the Inventory Document number. The document will default to the Plant for which the document was created.
2. The user scans or enters the location. The location entered must exist on the document to validate its existence.
3. The user scans, enters, or searches for a material. The material must exist on the Inventory Document and in the specified location.
4. The material’s description is displayed.
5. If the material is Batch-controlled, the Batch field will be visible. If the material is serial-controlled the Serial field will be visible.
6. The user scans, enters, or searches for a batch number that is assigned to the material specified.
7. The user enters the count quantity.
8. If the material is serial-controlled, the Serial field is scanned or entered by the user.
9. A counter to the right of the Serial field will count how many serial scans have taken place. Once the full quantity of serials has been entered, the user taps on the No More Serials button to continue, and the application will display the Submit button.
10. The Submit button will post the count of this material to SAP and reset back to the Material field.

Exact workflow steps will vary by ERP. Tailored options are also available for specialized workflows.

3. Proven Results Including 60% Reduction in Labor Costs

Manufacturing companies across diverse industries have achieved significant results by automating cycle counting with RFgen.

One global steel manufacturer using Oracle EBS reduced cycle counting labor time by 60%. A manufacturer of concrete and cement for the construction industry increased cycle count accuracy by 20% for SAP S/4HANA.

Cryolife Gains Valuable Speed, Accuracy, and Insights.

As a supplier of in-hospital consignment inventory, Cryolife is contractually required to complete cycle counts every 6 months. The company was completing these manually, which was inefficient and inaccurate. By automating cycle counting with RFgen’s mobile solutions, Cryolife’s employees can now complete cycle counts faster, with less effort, and with greater accuracy.

During cycle counts, they can now also:

• Conduct them in English, French, German, and other languages.
• Be warned if a product is near expiration and take appropriate action.
• Use iPhones to take pictures of inventory to submit with cycle count.

Mobile barcoding solutions can even automate cycle counting in disconnected environments, like a walk-in freezer or at remote locations.