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.
Table of Contents
- Benefits of Cycle Counting in ShipHero
- Choose a Cycle Count Type in ShipHero
- Get Started with Cycle Counting in ShipHero
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
- How to Create Cycle Counts in ShipHero: Create a cycle count from the ShipHero dashboard or the Public API.
- How to Manage Cycle Counts in ShipHero: Track statuses, view count details, and resolve a batch that won't close.
- How to Cycle Count Using ShipHero Mobile: Conduct a cycle count from the ShipHero mobile app.
- Understanding Cycle Count Recounts: Learn how ShipHero handles discrepancies and recounts.