RE:[sap-log-mm] Cyclical counting best practice

Posted by Sap Land Wednesday, 18 May 2011 07:20

Posted by Reynier
on May 18 at 10:26 AM

Thanks to all for the feedback. It is true that that it is not the amount of people nor the amount of articles that need counting, but the accuracy thereof. It is trying to hammer this into the financial controller's head! We have a decentralized model, thus, multiple operating areas with a host of stores hanging off each p-org / s-org. This brings the challenge that each one of these has a fin controller. Some have been around the block a couple of times, but fail to understand the logic, while others accept the change. the key question now would be, if I have done my ABC analysis, the controllers as a whole still request all sku's to be counted in a 6 month cycle, regardless of rate of consumption.

To smooth consumption, I analyzed the last fiscal year's worth of data to get my ABC's Obviously, There will be cyclical articles in there as well, but as a rule, if they appear on shelf only once a year, they will be counted in the period of sale via ad-hoc counting schedules. This then still leaves me with over 50 000 sku's that are active and ranged that would require a count. The tail (C articles range 35 000+) have highest sale unit at around 100 per fiscal year to 1 unit for fiscal year. I am trying to determine what cut-off value I should insist on, as a forced count of all articles in a shortened space of time leads to poor inventory accuracy.

---------------Original Message---------------
From: Reynier
Sent: Sunday, May 15, 2011 4:12 PM
Subject: Cyclical counting best practice

My company ( FMCG retail) is currently doing cyclical counting. We have on average 3 counters with the inventory manager responsible for the counting and the updating of the inventory balances. How many articles can be expected to be counted by these employees? We have had Industrial engineers do a survey and have advised that 1 person will be able to count 110 articles a day, thus 330 for the 3. Is this reasonable / too little / too much? We are expected to complete a full cycle in 120 days, with approx 50 000 articles to be covered. What does best practice dictate?

__.____._