Feature Request - Cycle Count

Hi Team,

Stocktakes have their place, but they are time consuming and halt operations in a warehouse. They also require all hands-on deck / manpower.

Background and Current Process

Currently, when we visually see our “Pick Bin” locations down to a few remaining units (generally 3 units or less), we will scan the product barcode inside that bin (if its sold out we scan the product barcode that we also attach onto the pick bin location). We do this for two reasons.

• To verify if the current bin locations stock, matches what is physically there. This is important when there are only a few remaining units, as it can help avoid overselling and/or underselling.
• To verify if we can/want to replenish the pick bin with more stock, which are stored in other “storage bin” locations (this is a missing function in Cin7 Core)

Feature Request

I believe what would help us and others, is if there were an option on the WMS and Web Platform within Cin7 for ‘Cycle Count’.

What is a cycle count?

"A cycle count is an inventory auditing technique where a small subset of stock is counted on a regular, ongoing basis, rather than conducting a full physical inventory at a single time"

Why This Would Benefit Us and Others

This will help a lot when we're down to our last few units, as it avoids interruptions and lost time during the Pick process by.

• Verification of Physical Quantities: A more accurate up-to-date inventory levels, which is particularly important for SKUs with low remaining quantities.
• Verification of Physical Location: Allows for the verification of an item's physical location against its electronic record, mitigating discrepancies (e.g., misplacement of returned items).
• Optimized Picking Efficiency: Reduces interruptions during the Pick Task by proactively resolving potential stock issues ahead of time
• Record Keeping: Creates a record of who completed the cycle count and when, improving visibility.

Those who use Shopify, would know that returns processed there are captured in Cin7 and electronically returned to the “bin location” that were picked from.

However, if the remaining sku stock, has been transferred to a different bin location (after the item was sold, but before it was returned), this gives us issues where the item has gone into the old bin location, not its current bin location with the other remaining units. 

The secondary issue is that because the return is an electronic reversal, there is no physical scan data and recording of where/when/who, this can result in a warehouse member accidentally placing the item into the wrong bin location – different from what is recorded electronically, requiring a manual search.

Potential System Rules for Auto-Generation

Rules are needed in the backend, for the software to be able to create and auto-generate cycle count jobs. Potential ideas and suggestion.

Quantity Threshold

• Auto-generate a Cycle Count Job, when SKUs within “selected bin locations” or “selected bin groups” or “selected location” (no bin) fall below a pre-defined set quantity.

Frequency Trigger

• Auto-generate a count when “selected bin locations” or “selected bin groups” or “selected location” (no bin), has not been counted for a specified number of days, irrespective of the current stock quantity.

Proposed Workflow and Functionality

The cycle counting process should follow these steps:

1. Job Generation: The system automatically generates a Cycle Count Job based on the rules established in the backend. There is two tabs for a Cycle Job task, one tab is for the WMS cycle count task and the next tab for the investigation / stock adjustment.
2. WMS Access: The warehouse staff access it in the main menu WMS > Inventory Count > Cycle Count (would also place the existing Stocktake function in here). When they click on Cycle Count, it provides a list of outstanding jobs by pressing the search icon
3. Physical Verification: The user is directed to the specified bin location and scans the physical units. At the time of opening the job, the WMS should also display the live on-hand stock quantity. The time tracking feature will also operate (so we can use a report to know how long we spend on cycle counts per day/week/month/year etc)
4. Job Completion: The job is processed based on the comparison of the physical count and the system's electronic record:
   • If physical count matches system stock: Both tabs are marked as authorised, and the overall job status is Completed
   • If physical count mismatches system stock: The WMS user count tab is marked as Authorised, but the Investigation/Stock Adjustment tab is not. The overall Cycle Count job status is Investigating.

Rationale for Investigating: In practical operations, physical quantities are often correct, but units may be physically placed into the wrong bin location due to misplacement/human error, stolen goods etc. Directing mismatches to a manager/team member for further investigation, allows for a proper search and final stock adjustment decision.

Managerial Action and Job Resolution

Following the initial cycle count completion by the WMS user, the Warehouse Manager (or allocated team member) will utilize the Web Platform to print a report (or use the WMS if possible?) to investigate these jobs. This is necessary as discrepancies often require additional time for physical searching across multiple bin locations to locate misplaced units. The manager will then resolve each job based on their findings, leading to one of the following outcomes:

Managerial Action

Unable to Locate Missing Unit(s)

• The reported missing unit(s) cannot be found after an extensive search.
• The Manager marks quantities scanned by the WMS user as verified. The system automatically executes a negative stock adjustment 
• The overall job status is completed.

Locates Missing Unit(s)

• The manager successfully locates the missing unit(s) after an extensive search.
• The Manager updates the quantities scanned by the WMS user and marks them as verified. No stock adjustment is performed.
• The overall job status is completed.

Verifies Surplus Unit(s)

• The manager confirms the existence of additional units beyond the system's electronic record.
• The Manager marks quantities scanned by the WMS user as verified. The system automatically executes a positive stock adjustment.
• The overall job status is completed.

The What IFs

Scenario 1

• An SKU within its pick bin location, has 3 units left (which is its quantity threshold)
• It was added onto the list (for example on a Monday)
• The WMS user does not complete a cycle count until 7 days later
• In between this time, the product has later sold out, electronic record has 0 units on hand
• We would suggest to still leave this SKU with its last known bin location on the list, so that the WMS user can still check that last known bin location - as this is for the possibility of finding / locating additional units that were not electronically recorded for previously (ie PO has 10 units, carton says 10 units, but inside there is 11 units)

Summary

I feel cycle count would help greatly, when the remaining quantities are low (roughly 3 units or less from our experience)

By doing a cycle count upfront, we are likely to avoid having issues when completing the Pick Task for a Sale Order on the WMS – as if it is not done in advance, then there can be times where the Picker, is unable to locate the last remaining unit, which then becomes a bigger issue where the order is held up and the customer needs to be contacted etc.

The above is just a generalised thought out process and may need more in depth thought from a operational and programming point of view. It is a start and may need further input from users / comparisons to other competitor offerings, but generally speaking, something along these lines should benefit all users.