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Cycle count SOP (small business)
A practical, repeatable cycle count SOP for small teams. Use it to keep accuracy high, reduce drift, and make reconciliation faster.
Cycle count SOP (step-by-step)
These steps work whether you count by location, category, or velocity. Keep it consistent and document variance.
- 1
Choose the scope (locations, categories, or high-velocity items).
- 2
Freeze the scope for the count window (avoid moves mid-count).
- 3
Count physically at the location (scan if available).
- 4
Record discrepancies immediately and capture a variance note.
- 5
Investigate common causes: mis-picks, unrecorded transfers, receiving exceptions.
- 6
Reconcile with controlled adjustments (use reason codes).
- 7
If variance repeats, fix the process (not just the numbers).
- 8
Export a summary for weekly review (counts, variance, actions).
- 9
Rotate coverage so all critical areas are counted regularly.
- 10
Track a simple KPI: % locations counted and variance trend over time.
- 11
Update replenishment levels when usage patterns change.
- 12
Repeat weekly (or more often for high-velocity areas).
Tips to make cycle counts stick
The best SOP is the one your team will actually run. Keep it lightweight and consistent.
- Count smaller scopes more often instead of huge annual counts.
- Require a variance note for adjustments to capture the “why”.
- Standardize transfer destinations so drift doesn’t return.
- Review trends monthly and fix the process where variance repeats.
Want help mapping your workflow?
Want help choosing cadence and scope? We can recommend a cycle count strategy for your locations.
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