Count
Accuracy of inventory level is critical to a supply chain. Inventory levels are the key to having better customer satisfaction, demand planning and lower labor costs.
It is possible to reduce the human error factor while receiving and putaway of inventory to a location in a warehouse, by introducing packaging restrictions that include labeling, consistent marking and bar coding. Also, each move request in the system requiring location and the package being scanned reduces human error further.
However, it is common that a customer or consumer may order in quantities that is different from the package unit of measure. For example, shoes are usually packed in case packs. But, a consumer may order a single pair, which introduces the requirement to break open the package and introduce some human handling of product.
There are two types of count namely, physical count and cycle count.
Physical count is a process that is usually performed for a large area such as zone, or a warehouse. In physical count, users perform an inventory count typically stopping down the warehouse. After this count, activities pertaining to this warehouse can be resumed, for example, putaway, replenishment, retrieval, and so on, which the user would have stopped before starting the physical count.
Cycle count is a process that is performed periodically, usually for a small area such as location range. In cycle count, a user performs an inventory count with processes such as, putaway, replenishment, retrieval, and so on, running simultaneously.
A count system allows you to carry out counts in a planned or ad hoc manner. A common type of count employed is year-end inventories. While this is exhaustive, it is also time consuming, and does not ensure accuracy throughout the year. The other method is to only count items based on velocity or price every quarter. However, the best method is to ensure count performed periodically in the system. The count tasks may be either generated for a cycle count program, requested by the inventory control department ad hoc, or be initiated through system events that occur at a location level.
The Sterling Warehouse Management System version 9.1 allows count requests to be initiated through console on an ad hoc basis. Count requests can be generated automatically for a cycle count program that is employed at a node, or a set of nodes for an enterprise. System events like exception being recorded during an activity performed like putaway, retrieval or pick, or a location quantity dropping below minimum levels or at zero can also be used to initiate a count request.
Some examples of different count requests include requests to count:
- A location
- An item, product class, and UOM combination
- All received products based on purchase order or shipment using the receipt number
- An entire zone
- A case or pallet
- A product line or any other item classification
- A region level
- A node level or across nodes
- The location level, aisle, or bay level within a zone
- A range of locations
The Sterling Warehouse Management System version 9.1 allows priority to be placed on a count request and allows to place date and time based conditions for start and/or finish times. For example, user may request a count for a zone that has slow moving items and requests for count to start the next day assigning a low priority. The start and end time allows for planning and tracking.
The Sterling Warehouse Management System version 9.1 provides inventory monitors that raise events based on the location level activity for either minimum levels or a location that is at zero quantity.
The Sterling Warehouse Management System version 9.1 also requests users for confirmation whenever it detects that a location is empty after picking. If the user specifies that the location is not empty, an event is triggered that creates a count request. This ensures that a variance is detected at the earliest, even before the next cycle count is due. The confirmation is done during retrieval, replenishment, and picking. The user is not inconvenienced in any way; they can carry on with their allotted tasks after confirmation.
Tasks for a count request could be at a location, item, category of items, or container level, or in any combination of those based the on level at which the request was placed.