← Back to glossary Category: Logistică Cycle counting Quick answer: Continuous small-batch counting with no activity stops — modern alternative to annual physical inventory. Key takeawaysABC analysis: A SKUs (top 20% sales) counted monthly; B (60% sales) quarterly; C (rest) twice a yearTrigger-based: auto-count on understock, after return, after GRN discrepancyLocation-based: rotated geographically Definition Cycle counting is the technique of counting small SKU subsets continuously throughout the year, instead of a 1-3 day annual physical inventory that halts operations. Prioritization ABC analysis: A SKUs (top 20% sales) counted monthly; B (60% sales) quarterly; C (rest) twice a year Trigger-based: auto-count on understock, after return, after GRN discrepancy Location-based: rotated geographically Benefits Uninterrupted operation (warehouse keeps running) Stock accuracy constantly >99% (vs 92-95% pre-annual) Early error detection (no „surprise” at year-end) Fiscal compliance if the procedure is documented Frequently askedCan I fully replace annual physical inventory with cycle counting?Operationally, yes. Fiscally, many jurisdictions require an annual validation — which can be a full cycle sweep, but not a blackout. Where Azuvio fitsSoftware WMS Related termsWMS (Warehouse Management System) — The system orchestrating physical warehouse operations: receiving, putaway, picking, packing, shipping.NIR / Goods Receipt Note (GRN) — Internal document confirming the physical receipt of goods in the warehouse — the pivot between supplier delivery note and invoice. Last updated: 2026-07-17