Teams often run into problems when they don’t understand how common the pitfalls are in a process like cycle counting. Even with regular counts, errors can spread if staff skip steps or fail to check other storage areas.
In our work, we’ve seen how easy it is to miss deeper issues when the focus is only on quantity, not on cause.
What is Cycle Counting?
Cycle counting is when we check a small part of the inventory on a set schedule. Instead of counting everything at once, we pick a certain item and location and check the quantity against what the system says. This is done every day, week, or shift.
This method helps catch errors early. It also reduces the need to shut down for full physical inventories. But it has limits.
Cycle counts can confirm:
- If a specific item is in the right spot
- If the quantity at that location is correct
But they do not check if that same item is stored elsewhere in the building. That’s where problems begin.
Common Pitfalls of Cycle Counting
1. It Only Confirms Item Location Accuracy
Cycle counts focus on the item and the spot you choose to count. They don’t confirm if the item is stored in other areas. This means:
- You might have more of the item somewhere else
- You might have mixed items in one location
- A new shipment may have been placed in a different spot
Key Takeaway: Cycle counts help with location accuracy, not full warehouse accuracy.
2. Skipping Root Cause Analysis
One of the biggest pitfalls of cycle counting is fixing the number without asking why it was wrong. Many teams simply change the number in the system to match the physical count.
Instead, we need to ask:
- Why did the system show a different number?
- Was the item moved without scanning?
- Was it received wrong?
Doing a Root Cause Analysis (RCA) helps us fix the process, not just the data.
Cycle Counting Doesn’t Equal Four-Wall Accuracy
Four-wall accuracy means the entire building’s inventory is correct. This is different from spot-checking one location.
To achieve it, we need:
- A complete freeze of all inventory activity
- A full physical count of all items and locations
Cycle counting can’t provide this. If we assume it does, we risk making decisions based on bad data.
Pro Tip: Never skip full inventories. Use them alongside cycle counts for a clearer view.
Need expert help with warehouse inventory control? Contact Monarch for a free consultation.
When Cycle Counting Falls Short
Here’s where cycle counting fails us:
- Missed stock in other locations
- Wrong assumptions about inventory accuracy
- Process issues that never get fixed
- Growing gaps between real and system inventory
Over time, these problems can lead to:
- Stockouts
- Overstocking
- Delayed orders
- Lost revenue
Best Practices to Avoid Cycle Count Pitfalls
- Always do RCA when there’s a mismatch
- Check other locations for duplicate or misplaced stock
- Train staff to follow all movement and scanning steps
- Use full physical inventories at set times each year
- Review your process when repeated mismatches happen
Doing these things helps your system data match what’s really in the building.
Final Thoughts
Cycle counting is a helpful tool, but it’s not the full answer. The pitfalls of cycle counting become clear when we start relying on it too much. It’s best used as one part of a larger inventory plan, not a stand-alone solution.
Want a clearer picture of your inventory? Call Monarch today to schedule a full warehouse review. Let’s make sure what your system says matches what’s on the floor.
