Cycle Count
A periodic, partial physical inventory audit where a subset of equipment is verified against the system record — a faster alternative to a full physical inventory.
A cycle count is a physical inventory verification method where a defined subset of the inventory is counted and reconciled against the system record on a scheduled basis — daily, weekly, or monthly — rather than all at once. By cycling through different product categories over time, a supplier maintains ongoing inventory accuracy without the operational disruption of a full physical count.
For DME suppliers, cycle counts are particularly important because inventory is constantly in motion: units are checked out, returned, in reprocessing, in maintenance, and out for delivery all at the same time. A snapshot inventory taken once a year will almost certainly be out of date the day after it is completed.
A well-designed cycle count program focuses attention on high-value, high-movement items (concentrators, power wheelchairs, ventilators) more frequently than on low-value, slow-moving items. Discrepancies found during a cycle count — items that are in the system as 'in warehouse' but cannot be physically located — are the early warning signal for ghost inventory.
Cycle counts generate the data needed to calculate shrinkage rates, identify which product categories or locations have the most discrepancies, and measure whether the tracking system is being used correctly by warehouse staff.