Definition
A cycle count is a scheduled count of a small part of the inventory, such as one category, location or class of items, repeated regularly so all stock is counted over a period without a full shutdown.
Cycle count meaning and methods
Instead of closing the warehouse once a year, teams count a slice every week. High-value or fast-moving items, often called A items in ABC analysis, are counted more often than slow, cheap ones.
Example: a distributor counts about 5% of its SKUs each week, so every item is counted roughly every five months and its top 200 items every month.
Cycle counting finds errors sooner and keeps accuracy visible, but it needs reliable location data and discipline. It complements, and in some audits replaces, the annual full stock count.