4) Cycle Count

There are 2 types

1. Periodic / Perpetual inventory verification
2. Annual Inventory (AI) process
Periodic / Perpetual inventory verification
At the first stage of PI, SCM team needs to finalize the daily PI schedule
to reflect the date and articles to be physically checked.

As per the process of scheduling, following steps are to be followed –

 Classification of inventory based on the value of the units/articles.

A category articles (comprise high value items), B category articles
(second priority in terms of value) and C category articles
(inventory quantity is more but value per unit is least)
 PI frequency is to be determined based on the article
categorization.
 A category articles being high value items, audit frequency will be
daily (on rotation basis), B category can be weekly/fortnightly, and
C category articles on a monthly/quarterly basis)
 Check available list of manpower for conducting PI.
 Circulate schedule of PI to the respective locations.

Detail
 Food articles having short self-life. Frequency should be
more not only to ensure availability but also validity of self-
life.
 For fresh and ultra-fresh articles, frequency should be more
considering very short self-life and perishable nature.
 Platform in charge allocates aisles and bays to PI team
(consist of two persons) with RFIDs / Manual counting
sheets. Assignment register is to be maintained based on
allocation.
 PI team will perform scanning / counting of articles. For
that, one by one pallet is brought down and scanned /
counted. Once the scanning /counting are completed for that
pallet, it will be put away in the same location with a mark
or identification that PI done. “Post it” stickers can be used
for temporary identification.
 Counting of stock must be performed from left to right and
top to bottom.
 Once all the counting has been completed, Platform in
charge will check whether all allotted aisle and bays are
covered.
 If completed then Assignment register will be signed by PI
administrator for completion of activities. All RFIDs /
counting sheets are to be returned back to platform back
office team / platform in charges.
 A surprise check of blind count process is to be performed
by the platform in charge and SCM Manager.

 Validation

 Post stock correction entries in GMS / MDLS, scanned copy

of approval document and stock correction sheets are to be
forwarded to SCM team who will review whether the entries
have been correctly posted in GMS / MDLS.
 In case of any deviation, correction entries are to be done in
system by SCM Manager with written approval of SCM
Head.
CONCLUSION :