Cycle Counts & Audits

Purpose

This guide explains how eFulfillment Service (EFS) maintains inventory accuracy through scheduled cycle counts and full audits, and how clients can request additional counts when needed.

1. What Are Cycle Counts

Cycle counts are partial inventory checks performed regularly to verify that stored quantities match records in the Fulfillment Control Panel (FCP). These counts ensure accuracy without disrupting daily operations or requiring a full warehouse shutdown.

EFS performs these counts on a rotating schedule across different warehouse zones to keep your on-hand inventory as precise as possible. During these checks, the team scans each item’s barcode and cross-references it with the SKU record in the FCP to ensure data accuracy.

2. Standard Audit Frequency

EFS conducts:

• Ongoing cycle counts throughout the month
• Comprehensive audits quarterly or as part of operational reviews
• Targeted counts after major inventory transfers, recalls, or returns

Each audit involves scanning item barcodes and verifying quantities against FCP records to maintain system accuracy.

3. Client-Initiated Counts

You can request a specific count of your inventory at any time through the FCP support system.

To request an audit:

1. Log in to your Fulfillment Control Panel
2. Go to Client Info → Support (alternatively, use the floating ‘SUPPORT’ tab on most FCP pages)
3. Submit a support ticket titled “Inventory Audit Request”
4. Specify the SKU(s) or category to be checked and the reason for the request
5. You can also submit requests via email to [email protected] or through http://support.efulfillmentservice.com

Note: Labor fees may apply for custom counts or client-initiated full audits outside of the scheduled cycle process.

4. How Discrepancies Are Handled

If discrepancies are found during any count:

1. EFS reviews receiving records, order logs, and previous adjustments
2. A reconciliation report is created and reviewed internally
3. Confirmed quantity changes are updated directly in your FCP inventory records
4. You will be notified by email if any SKU adjustments were made

This process maintains alignment between physical inventory and digital records and ensures billing accuracy. All inventory adjustments are tracked in the system and can be reviewed through your inventory history.

5. Viewing Count History

To review your inventory adjustment history:

1. Log in to your FCP
2. Go to Inventory → View Items
3. Click History beside any SKU to see all adjustments, including those resulting from audits
4. This view shows who performed the change, when it occurred, and what adjustment was made

You can also generate comprehensive inventory reports by selecting Reports → Inventory Spreadsheet from the main menu, where you can sort by SKU number, description, or good inventory status.

6. Accuracy Expectations

EFS targets 99%+ inventory accuracy across all clients. That percentage is maintained through:

• Consistent barcode scanning at all touchpoints
• Cross-verification of receipts and orders
• Random audit sampling throughout the warehouse
• Systematic cycle count procedures

You can help maintain accuracy by:

• Ensuring SKU labels are accurate and consistent across all shipments
• Submitting Receiving Forms (ASNs) before inbound shipments arrive
• Reporting missing or damaged stock promptly via the support system
• Providing complete and accurate packing lists with every shipment
• Using scannable barcodes that meet EFS requirements (see the Receiving Guide for approved barcode formats)

7. Reporting and Transparency

Clients can monitor inventory adjustments using several FCP tools:

Available Reports:

• Inventory Activity Reports – Access under Reports → Inventory Activity to view all inventory movements
• Receiving Logs – Review inbound verification records
• Adjustment Summaries – See SKU-level reconciliation details
• Transaction Spreadsheet – Generate detailed order and inventory transaction reports

If you need documentation of a specific audit result, request it through the support ticket system or contact [email protected] directly.

8. When Full Audits Occur

Full audits may be conducted:

• When onboarding new clients with complex catalogs
• After major warehouse reconfigurations or system upgrades
• If recurring discrepancies appear during cycle counts
• At the request of your Account Manager for long-term inactive SKUs
• During quarterly comprehensive inventory reviews

These audits involve detailed SKU-by-SKU validation across all storage types (bins, shelves, pallets) and may take 2-3 business days to complete depending on inventory volume.

9. Related Notifications

Inventory adjustments, receiving confirmations, and long-term stock notices are communicated by email. To ensure you receive these important updates:

1. Confirm your contact list under Client Info → Manage Email
2. Add your inventory or operations contacts if they are not already listed
3. Verify notification preferences are enabled for inventory-related alerts

Important: After your initial inventory shipment is received, your Client Care Account Specialist’s email will be removed from your notification settings. Please ensure your designated contacts are properly configured before this occurs.

SMS Notifications

You can also opt in to receive SMS (text) message updates for critical warehouse notifications:

1. Navigate to Client Info → SMS Notifications in your FCP
2. Click Add New SMS Number
3. Enter your mobile number without dashes (international numbers should include the + prefix)
4. Select your country from the dropdown menu

Click Create SMS Number

10. Best Practices for Inventory Accuracy

Monthly Reviews:

• Review your Inventory Activity Report monthly to identify trends
• Compare your internal inventory records with your FCP reports
• Request clarification promptly if any discrepancies or unexplained adjustments appear

Proper Labeling:

• Keep all SKUs accurately labeled using approved barcode formats
• Use Code 128, Code 39, UPC-A, EAN-13, or other supported formats listed in the Receiving Guide
• Ensure barcodes are scannable without opening or unwrapping packaged items
• If products arrive without scannable barcodes, EFS can apply labels for a setup fee per job plus a small charge per label. Ask your client care specialists about specific rate pricing.

Proactive Communication:

• Submit ASNs (Advanced Ship Notices) when inventory ships to EFS
• Include detailed packing lists with every inbound shipment
• Contact Customer Service promptly regarding damaged or missing inventory

Storage Management:

• Delete inactive SKUs to avoid unnecessary bin storage fees
• Notify EFS via support ticket when SKUs will not be restocked for 45+ days
• This frees bin space and reduces your storage costs

Accurate counts prevent billing errors and reduce shipping delays caused by unavailable stock. Maintaining good inventory hygiene ensures smooth operations and optimal cost management.

11. Inventory Hold Status and Hurt Bins

EFS maintains separate tracking for damaged or questionable inventory:

Hurt Bin Management:

• Damaged items from returns or receiving are placed in “hurt” bins
• You have 30 days to instruct EFS on disposition (return or discard)
• After 30 days without instruction, EFS may dispose of hurt bin items
• View hurt inventory under Client Info → View Inventory or run Inventory Spreadsheet report selecting “Show only SKUs with hurt inventory greater than zero”

Hold Inventory:

• Items awaiting quality verification or client instruction
• Tracked separately from available “good” inventory
• Will not be allocated to orders until moved to available status
• Regular monitoring prevents aged hold inventory from accumulating storage fees

Next Steps and Additional Resources

Continue to: Cycle Counts & Audits Guide
That guide explains how EFS verifies inventory accuracy, resolves discrepancies, and provides clients with detailed count reports.