Accurate inventory management is essential for efficient manufacturing and distribution operations. Without it, businesses may experience stockouts, overstocking, and lost revenue.
Epicor ERP systems, such as Kinetic and Prophet 21, offer robust tools that help companies manage inventory using two key approaches: cycle counting and periodic physical counts.
Knowing how each approach works and when to use it can significantly improve efficiency, compliance, and profitability.
Cycle counting is a practical alternative to shutting down operations for a complete inventory check.
Rather than counting everything at once, companies regularly count smaller portions of their inventory throughout the year.
This continuous approach maintains more accurate records and helps teams identify issues before they become costly.
Epicor ERP simplifies cycle counting with built-in features for scheduling counts, assigning tasks, and updating results in real time.
In Epicor Kinetic, cycle counting is integrated with production workflows to ensure the accuracy of raw materials and finished goods as they move through the shop floor.
With Epicor Prophet 21, distributors can integrate cycle counts into daily warehouse routines to maintain visibility into stock levels while keeping operations smooth.
Cycle counting is more than just a convenient inventory management tool. It improves data integrity directly, reduces waste, and helps organizations optimize their resources.
Frequent and targeted inventory counts enable businesses to identify discrepancies promptly, such as missing raw materials on the shop floor or misplaced items in the warehouse.
Updating the ERP system in real time ensures that inventory records remain reliable for purchasing, planning, and customer service.
Rather than dedicating days or weeks to a full physical inventory, cycle counting divides the workload into smaller, more manageable tasks.
With Epicor ERP, scheduling and reporting are automated, freeing up staff to focus on higher-value activities while maintaining precise counts.
Since only a portion of the inventory is counted at a time, operations can continue with minimal downtime.
Manufacturers using Kinetic can maintain production, and distributors using Prophet 21 can fulfill orders uninterrupted.
Epicor’s built-in reporting tools simplify the tracking of recurring issues, such as frequent variances in specific items or locations.
These insights help businesses refine processes, improve staff training, and strengthen supply chain performance over time.
While cycle counting is ongoing, physical inventory counts are performed less frequently and require counting all stock items.
These counts are usually scheduled annually or quarterly and are often required for compliance or year-end financial reporting.
Although they are resource-intensive, physical counts provide a complete reset of inventory accuracy.
Epicor streamlines the process of taking full physical counts by generating count sheets, assigning them to staff, and updating records once the count is finished.
This is especially useful in Kinetic for batch and lot traceability in regulated industries.
In Prophet 21, Epicor provides warehouse teams with the structure they need to conduct large-scale audits with minimal errors.
Although both methods aim for accuracy, they serve different purposes. Businesses often use them together to balance efficiency and compliance.
Unlike physical counts, which are performed less often, usually quarterly or annually, cycle counting spreads inventory verification across daily, weekly, or monthly intervals.
Thus, cycle counting is a proactive method, while physical counts provide a periodic reset.
Cycle counting is designed to fit into ongoing operations, enabling production lines and warehouses to remain operational throughout the process.
In contrast, physical counts often require temporary shutdowns or restricted access, which can cause delays in manufacturing schedules or order fulfillment.
Cycle counting involves smaller teams performing targeted checks, which distributes the workload across the year.
Physical counts require a lot of people and coordination in a short amount of time, which can strain staff availability and increase overtime costs.
Cycle counting primarily focuses on maintaining real-time accuracy in daily operations to support better planning and decision-making.
However, physical counts are often conducted for external compliance, audits, or financial reporting purposes, providing a complete picture of the inventory at a given moment.
Cycle counting ensures continuous accuracy, and physical counts guarantee compliance and provide a full financial picture.
Focus on taking more frequent counts of high-value or fast-moving items. Epicor makes it easy to prioritize by assigning ABC codes.
Automating cycle count schedules eliminates the need for manual estimation and ensures consistency across operations.
Training is essential to ensure that staff follow consistent procedures for counting and updating records in Epicor ERP.
Use reports and variance analysis to identify patterns and root causes in warehouse or production processes, as well as areas for improvement.
The right approach depends on business goals and industry requirements.
Cycle counting is ideal for businesses that want to maintain ongoing accuracy without interruptions, particularly in fast-paced warehouses and production lines.
Physical counts are necessary for compliance and financial reporting, as well as when a full reset is required.
Many organizations benefit from using both methods, conducting cycle counts throughout the year and physical counts at the end of the year.
In today’s competitive landscape, both cycle counting and periodic physical counts are essential tools for achieving inventory accuracy.
With Epicor Kinetic and Epicor Prophet 21, businesses can use automation, reporting, and streamlined workflows to reduce errors, boost efficiency, and maintain smooth operations.
At Teccweb, we specialize in helping organizations maximize their Epicor ERP system potential.
If you want to optimize your cycle counting process, prepare for a physical count, or improve your overall inventory management, our team can guide you every step of the way.
