Physical Counts
Physical Counts are nothing more than reconciling the computer balances with the actual. Often, companies do a mass physical count over a long holiday weekend in order to capture the inventory counts. These counts will either be matched to computer records or used as starting balances when going live. The problem is, doing a mass count is very disruptive and costly to the company, which is why cycle counting is used.
The system inventory values are referred to as perpetual counts. Regular confirmation of the physical to perpetual counts significantly improves the users’ confidence in the system. Accurate perpetual inventory values will enable you to address simple customer inquiries in seconds, rather than minutes, to allow for the physical confirmation. In addition, if you are working products such as tile, wallpaper, leathers or fabrics, where a customer may call requesting a specific lot, then an ERP System can provide real time availability, so your customer doesn’t have to wait on the line.