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Understanding Cycle Counting in ShipHero

Cycle counting is a way to check inventory accuracy without stopping warehouse work. Instead of counting your entire warehouse at once, you audit small groups of items or locations on a regular schedule. This keeps your ShipHero inventory records accurate all year, not just after one big count.

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Benefits of Cycle Counting in ShipHero

Consistent cycle counting keeps your physical warehouse stock matched to your ShipHero records, creating a more efficient and scalable fulfillment process.

Benefit Category Impact on Operations
Operational Continuity Cycle counts are non-disruptive. Your team keeps receiving, picking, packing, and shipping orders while a count is in progress.
Targeted Accuracy Tailor counts to prioritize high-value items or fast-selling SKUs.
Fulfillment Speed Accurate inventory data leads to faster pick times and on-time shipments.
Reduced Error Rates Frequent audits mean fewer mis-picked items and less need for manual inventory adjustments.
Reduced Emergency Restocking Avoid urgent restocking caused by having less physical inventory than expected.
Prevention of Over-Stocking Avoid wasting space and capital on excess stock caused by having more physical inventory than expected.
Early Issue Detection Catch recurring team or zone mistakes, damaged inventory, and misplaced items before they reach a live order.

The location being actively counted is the exception. It becomes unpickable until that count is complete. See How to Manage Cycle Counts in ShipHero for more on cycle count statuses.

Choose a Cycle Count Type in ShipHero

A cycle count in ShipHero is a list of SKUs or locations you want counted. ShipHero supports three cycle count types: Locations, Items, and Items Flagged for Recount. Each type fits a different counting goal, so pick the one that matches what you want to confirm.

Locations Cycle Count Type in ShipHero

Use a Locations cycle count to confirm everything stored in a location is correct and to catch items that shouldn't be there.

Advantages

  • Confirms the accuracy of a location.
  • Catches items that shouldn't be in a location.
  • Sorts by location type (bins, pallets, and so on) or location prefix.
  • Lets you scan in and add an unexpected SKU found in the location.

Disadvantages

  • Requires counting all items in the location, not just specific SKUs.
  • Can't sort by a particular customer, because one location can hold SKUs for multiple customers.

Items Cycle Count Type in ShipHero

Use an Items cycle count to count specific SKUs, such as high-velocity items or products tied to one customer.

Advantages

  • Counts a specific SKU, so it is very flexible.
  • Works well for counting SKUs tied to a particular customer.
  • Lets you tag SKUs and count by tag.
  • Lets you schedule counts by tag, such as monthly for high-sellers, quarterly for medium-sellers, and yearly for slow sellers (similar to ABC counting).

Disadvantages

  • Only counts the assigned SKU when sent to a location, not the entire location.
  • Doesn't confirm whether the bin as a whole is accurate.
  • Won't catch a SKU stored in a location it isn't assigned to. Use a Locations cycle count for that.
  • Sends the counter only to locations already assigned to that SKU.

Items Flagged for Recount Cycle Count Type in ShipHero

Use an Items Flagged for Recount cycle count to re-verify SKUs that had a discrepancy in an earlier count.

Advantages

  • Counts only the SKUs that need a recount, so it is very focused.
  • Lets you assign a manager or experienced user to these counts.
  • Requires two consecutive matching counts before ShipHero updates the on-hand quantity.

Disadvantages

  • Only counts SKUs already part of the cycle, not the entire location.
  • Doesn't confirm whether the bin as a whole is accurate.

Get Started with Cycle Counting in ShipHero

More Resources

  • ShipHero Public API

    Connect your tools and AI agents directly to ShipHero with the Public API. Build powerful integrations, automate workflows, and tap into real-time data using the AI tools you prefer, with the option for secure, read-only access for AI-driven insights without added risk.

  • ShipHero Academy

    Explore ShipHero Academy for certifications, deep-dive training, and expert-led courses on WMS and fulfillment. Build your expertise and help your team operate at a higher level.

  • Change Log

    Stay up to date with the latest improvements across ShipHero. The Change Log gives you a clear view of new features, enhancements, and fixes as they roll out—so you always know what’s new and what’s better.