Inventory Control vs. Inventory Management: Build a Cycle Count Program That Actually Improves Accuracy
Most teams chase “inventory management” features and ignore inventory control. Result: fancy dashboards on top of bad numbers. Fix control first—design a cycle count program that finds and kills the sources of variance (slotting drift, move errors, returns, damages) and then feed clean data to your WMS/ERP.
Free download: Inventory Accuracy & Cycle Count Kit (Excel) — ABC policy, daily planner, trigger rules, count log, KPIs.
Control vs. management (cut the jargon)
Inventory management = planning demand, orders, reorder points, safety stock.
Inventory control = truth on the floor: locations, quantities, lots/serials, and how fast errors get detected and fixed.
If control is weak, management is fiction. Start with control.
The 4 pillars of a real cycle count program
1) ABC policy that reflects today’s velocity
A’s = ~10% of SKUs, ~70% of throughput → count weekly.
B’s = ~20% SKUs, 20% throughput → monthly.
C’s = ~70% SKUs, 10% throughput → quarterly.
Set max days between counts and tolerance per class (e.g., A: 0.5%, B: 1%, C: 2%). Update ABC monthly from the last 30–60 days of picks/ships.
2) Event-based triggers (don’t wait for the calendar)
Start automatic recounts when you see:
Inventory adjustment posted
Move exception (source or target mis-scan)
Pick shortage
Returns back to stock
Lot/expiry within 30 days
Damages recorded
High-value SKUs
Each trigger assigns a count task with an owner and SLA (next shift). See the “Triggers” tab in the kit.
3) Daily plan you can actually meet
Use the planner to compute locations per day to stay compliant:
A locations / 7 days
B locations / 30 days
C locations / 90 days
Sum to a daily target. If you can’t hit it with current headcount, reduce scope or carve protected time (first 30 minutes of each shift).
4) Count log with forensic value
Capture: SKU, lot/serial, location, system vs physical, variance %, variance $, reason code, and whether a recount was required. Keep notes short and factual: “bin flip,” “damaged to scrap not issued,” “returns to wrong slot.”
How variance creeps in (and the fixes)
Slotting drift → forward pick doesn’t match WMS locations. Fix: reslot + lock locations; enforce move confirmations.
Replen late/early → pickers short or double count. Fix: time-window replens; prioritize top SKUs.
Unit of measure confusion → inner vs each vs case. Fix: barcode standards (GS1) and RF prompts.
Returns bypass → stock added with no inspection. Fix: quarantine + disposition flow; trigger count before release.
Damages → scrapped items not transacted. Fix: mandatory capture on RF with photo.
Bulk to pick transfers without scan → ghost inventory. Fix: force LPN movement with scan both ends.
KPIs that move the needle
From the kit’s KPI tab:
Inventory Accuracy % (by count): target ≥98%
Value Accuracy %: ≥99%
Location Accuracy %: ≥97%
Cycle Count Compliance %: ≥95%
Lines Counted per Hour: ≥70
Repeat Variance Rate: ≤5%
Review weekly. If repeat variance stays high, you have a process defect, not a counting problem.
7-day launch plan
Day 1: Export last 60 days of lines picked/received. Build ABC classes.
Day 2: Load the kit → set A/B/C location counts and daily target.
Day 3: Wire triggers in the WMS (or manual until you can automate).
Day 4–5: Run counts on A locations only; log results; fix obvious defects (UOM, labels).
Day 6: Add B/C locations to the plan; start reporting KPIs.
Day 7: Review with ops; lock a 30-minute protected count window at shift start.
When to bring software into it
If you can prove a week of compliance on the spreadsheet and still drown in tasks, you’re ready for:
WMS cycle count programs with auto-tasking and exception rules.
Mobile RF prompts with reason codes and photo capture.
Dashboards that highlight repeat offenders by SKU/location/associate.
But don’t skip the policy and triggers. Software won’t invent them for you.
What we do in 2–3 days
Build ABC policy from your last 60 days.
Stand up triggers and the daily plan.
Train leads on root-cause notes and KPI reviews.
Hand you a one-page accuracy recovery plan.
Book a 20-minute fit call. If the numbers aren’t worth it, we will say so.