The Procurement Glossary » Cycle Counting
Cycle Counting
Inventory & Logistics
Definition
Regularly counting a subset of inventory items to keep stock records accurate without a full stocktake.
Explanation
Cycle counting spreads verification across the year, counting high-value or fast-moving items more often. It maintains record accuracy — essential for reliable reorder points and financials — with far less disruption than an annual full count.
Example
Class-A items are cycle-counted monthly, keeping inventory accuracy above 99%.
Related terms
- Inventory — The goods and materials a business holds for use, sale or production.
- Data Quality — The accuracy, completeness and consistency of the data underpinning procurement analysis and decisions.
- Warehouse Management — The control of storage operations — receiving, put-away, picking, packing and dispatch — to move goods efficiently and accurately.
- ABC Analysis — A method of classifying inventory or spend into A, B and C groups by value, so effort is focused on the most important.
Frequently Asked Questions
What is Cycle Counting?
Regularly counting a subset of inventory items to keep stock records accurate without a full stocktake. Cycle counting spreads verification across the year, counting high-value or fast-moving items more often. It maintains record accuracy — essential for reliable reorder points and financials — with far less disruption than an annual full count.
Can you give an example of Cycle Counting?
Class-A items are cycle-counted monthly, keeping inventory accuracy above 99%.
Back to the procurement glossary | Procurement concepts | Contact us