Best Practices for Cyclical and Annual Inventory

hi good

afternoon hi everyone SE people are joining um just a reminder if it’s your first webinar hi my name is pasal nice meeting you um really if you have any question or anything you want to ask me comments or anything just uh speak into well chat into the chat but it will be into the Q&A section so uh if someone can validate that you can hear me correctly that’ll be really helpful really great and uh if not so I’m not going to let you speak so even if you um raise your hand unfortunately uh the mic are off so really it’s into the Q&A section if you want to speak to

me do have yes thank you thank you Alexander godre Michelle for answering me

you and to share my screen make sure that you can see it correctly

thank you if uh again sorry I’m asking for a lot but if you can just confirm that you can see the screen and everything is set up uh good then we’re going to be able to start

soon oh hi everyone I’m still waiting a little bit we were we had more incription than this so I’m just waiting for people to join in all good for the screen thank you

Natasha thank you thank for your answer so sounds and video seems good so we’re going to be ready to start soon I’m still

I’m still uh waiting for some people to join in just uh because of the inscription that we

had for the new people that just joined if you have any comment or question throughout the webinar you can just uh speak to me in the Q&A section so I’m going to try to read them as I go I might wait at the end for for the question portion of of the webinar but if I can I will answer as I

go so it will be into the Q&A section

okay then um yeah I’m going to start and yeah I’m going to start the webinar so hi everyone Hi meeting you for those of you don’t who don’t know me my name is Pascal so I’m working I’m working at genius solution I used to do implementation now I’m on to with the sales teams so if you ever speak to me I’m Technic technically there to help you understand a genius so that is my role into the company so today what we’re going to speak about is uh we’re going to talk a little bit about best practice for annual and cycle count we’re going to focus a little bit more on cycle count and then we’re going to go more into a demo well we’re going to see I’m just going to show the plan for today so we’re we’re going to start with a little introduction about genius CRP so for those of you who are not customer yet or maybe future customer of Genius I’m going to just speak a little bit of who we are then we’re going to talk a little bit more about the difference between a cycle count and an annual count and uh how we’re going to be able to do a cycle count then we’re going to do a a demo ingenius on you know the technology that you’re going to be able to use to actually do the account uh in real life into your company so with uh with genius and we’re going to just finish with a question per periods and some information about what to do next if you’re interesting to move forward with

G so let’s talk a little bit about genius then so um really genius were we’ve been working with manufacturers for around 30 years a little bit more than this the five for first year we were more uh engineering company so uh best practice engineering uh and not on the software side of things but we moved to a software 25 years ago so now we are really a software company but we’re really focused also on you know best practice and engineering and making sure to help you grow uh so just not just not the software set of things but also an implementation having Consulting with you and all of that so that is our main focus so we’ve been working with manufacturers for 30 years uh we are around 120 employees so that needs to be updated a little bit but 120 employee and we have thousands of users and if you can see on the map that is basically where we can see our users so everything in red that’s where we have users so around uh Canada and us that’s really where we uh are user are mostly based we are still growing we’re company that’s continue growing with the 25 annual growth so very proud of that also to just continue developing the system so that’s also very important for us and another thing that we’re really proud of is our 96% customer retention which is high in this industry so we we really focus on making a partnership with our customer making sure that we can grow with them help them grow and that we are a good fit so it’s really important for us to make sure that you’re to use genius and it’s going to be a good fit with your company and your reality so that’s why we have that 96% customer retention we’re really proud

of what’s makes uh Junius unit so what is make us a bit different than other company uh mostly that we are built for Custom Manufacturing so our customer are really uh engineer engineer focused uh configured make to order make to to uh configure to order also so really we are we have customer that are really focusing on making custom product for their customer and that’s how uh and we try to help you as much as possible with genius into that specific reality for those specific needs one example of that is we have a cad to uh Catu bomb integration which is basically a push from your CAD software into genius to create that bill of manufacturing so from the information from your CAD software so so works or inventor we are able to push that information directly into genius to help you with that multiple design multiple revision and all of those uh needs that you need when you’re uh creating a new product from scratch for a new customer so that is an example of functionality that we have in genius to help with custom manufacturer also we do have you know industry leading scheduling and business intelligence so we have dashboard to easily be able to create dashboard into genius to help you make good decision so that is also very important for us for all of those so cat to bomb scheduling uh business intelligence you’re going to have a webinar on those subject also if you’re interesting interested to learn a little bit more

a new another thing that we have with genius uh is genius Academy so genius Academy here it’s a platform where you can when there’s video on how to use genius there’s videos exercise uh any type of information that could be useful for you to learn how genius works and how you could how you could use genius basically and what we have now in the latest version is we genus academ is now linked with genius so everywhere into the system where you’re going to be you’re going to be able to find the right information and the Right video related to the section that you are in so let’s say in that example I’m into receiving if I click on genius Academy here I’m going to be uh automatically related to receiving material into the web which is exactly where I was currently uh into receiving so really to able to help you find the information easily and making sure that you can use genius as efficient as

possible another thing that you have with genius Academy is access to contains that we call which is ask the expert session so basically it’s three times a week for an hour um you’re connecting into Zoom meeting and there’s a there’s someone from genius so there’s an expert that’s going to be there to be able to help you with your question so multiple people can be there multiple customer they all everyone are asking their question it’s really to help you have answer live answer really quickly with a consultant which which is basically free with genius Academy and you’re going to be able to uh answer the question and also you’re going to learn for other on other questions of people that asking other other things so it really create a sense of community so that is the goal all of those ask the expert

session yeah so that’s where you could go and find it if you already have access to

it so that’s it about genus CRP so now we’re going to go in directly into the uh the context of the webinar so we’re going to look into uh the difference between a cycle count and an annual count well so quickly just two definitions so a cycle count is a Inventory management system where item are being counted at a regular intervals it’s not necessarily going to be all the same item and you’re not going to need to do it only once it’s going to be multiple time multiple time throughout the year but a in a smaller portion so you’re going to Define some item that you’re going to you want to count multiple time during the year so you don’t have to do it all in one only once once a year which is basically what an annual count is so method where all the item and stocks are counted at once at the end of the year or at the end of an accounting

period if we look a little bit at the difference between those two we’re going to focus on pros and cons a little bit if we speak a little bit more to the pros of a cycle count first thing is uh we’re going to reduce the interruption so compare again it’s always compared to the annual account but compared to the annual one typically we’re going to shut out shut the the production so production will be stopped and then we’re going to do that whole counting and maybe it will be shut one day two days week really depend on your size there but into cycle counts well we’re not going to want to stop production at all so it will be planned um pred fine and and maybe just one or two people are going to do that cycle count so the production is not supposed to be affected by that by that count so that is really the goal of it so in that case we’re going to be a little bit more productive obviously it’s going to improve improve the uh inventory accuracy because we’re going to count it more and more more often even though it’s not the whole the whole inventory the side or the section that we we’re going to count will be counted way more often than just once a year in that sense then we’re going to have a more accurate inventory so we’re going to be able to see if there is a discrepancy between the value uh into the system and the value in your actual warehouse and we’re going to be able to flag the mistakes way early on so that will be helpful also to avoid future uh mistakes also throughout the year in we’re not going to wait at the end of the year to be able to flag those mistakes and

discrepancies it’s going to improve the uh operational operational efficiency also um first of all because of the fact that we’re going to reduce the interruption so if we don’t shut down the production then we’re going to be more efficient but also because we’re going to have a more accurate uh inventory we’re going to have a more accurate um scheduling also so planning of our production because uh planning and you know prioritizing a job will be affected by the fact that we if we do or don’t have the right material then if we have a better understanding and a better accuracy into our inventory we’re going to be able to schedule our job way more efficiently so we’re not just going to start a job realizing the middle of it that we don’t have material need to stop work on something else and then at the end of the at the end of the week didn’t actually complete anything so we’re going to focus on things that we can actually make and we’re going to be able to ship out so again more efficient on scheduling planning because scheduling will be affected by our inventory obviously and also for purchasing we’re going to be more efficient because the information will be uh more accurate we’re going to know exactly when we need to purchase when we’re going to miss out on on material and so on so again we’re going to be more efficient in multiple Department of the

company last last Point here we’re going to also improve our customer service well that makes sense again it’s all related but if we are more accurate and more efficient then we’re going to have a better visibility of our company we’re then going to have a better understanding of the company and then we’re going to be able to uh Define delivery dates and due dates that makes more sense and that we can actually deliver on time and that we’re going to be able to promise something that we can actually do because we’re going to have a better visibility again because of our efficiency and accuracy if we looked a little bit at the cons though on the cycle count it is more planning in organ iation so we’re going to need to figure out what type of product we need to count when we need to count it who’s going to count it and so on so all of that planning is going to need to be done and organized so it’s not just uh it’s not just once a year that we need to stop production for two days it might be you know we need to plan all of this throughout the year so could be a little bit more complex complexity for Dynamics environment also what I mean by that is it could be it could be hard to figure out which product needs to be count and at which frequency depending on how um how Dynamics and how very how multiple variation of material do you have again what I mean by that I’m going to explain that more is that let’s say you you’re having very custom product and so you’re purchasing always very very different Parts it’s harder to Define oh that part needs to be count at this specific moment because that part you might not know Will exist in the future or that part might never come back again so sometime it might be harder to Define you know the cycle count that needs to be done if you have so much VAR variation into your inventory and into your stock we’re going to look at some methods that you could use that could make sense for that type of reality but again might be a little bit bit more

complex if I look more into the annual inventory well first of all Pros it is a complete view of your inventory and it will be probably needed for your financial statement so again here I’m you know making pros and cons on those two reality as if they’re just one or the other the reality is you can do both right you could do cycle count to help you have more accurate inventory throughout the year but you can also do an annual one at the end of the year to help you for your financial statement reality is also your annual one at the end of the year if you’ve done cycle count throughout the year will be easier because it will probably be more accurate so again it’s not one or the other you can pick a choos and do both for the cons it’s going to be a little bit it’s a repetition of the you know other way around so basically you’re going to have more disruption of production activity you’re going to need more time and resource that’s going to be required for that period of time and it’s not only going to be resource and time on people on the floor it’s also going to be on Administration cost also so it’s going to be a big burden on administra Administration during that period because they’re going to need to figure out why there are so many discre discrepancies they’re going to do a lot of Correction and it’s going to be harder if you wait at the end of the year to try to understand a mistake that’s been done eight months ago and compare to if you see it the same week right so um yeah again and that we’re going to have delayed correction harder to figure out harder to understand the root cause of that problem to make sure that it’s not going to come up every year and it’s going to be hard harder at least to have a up to-date

inventory so just going to move on a little bit so we’ve talked a bit about the difference pros and cons so we’re going to look into if you are interesting into having a cycle count how can you start to have a cycle count so first we’re going to speak about the different methods of cycle conduct you can you can use then we’re going to look into how we can Implement those so first thing we’re going to need to uh select a method of counting so you’re going to have to select those type of item that need to be count and then we’re going to figure out the frequence of that of those so there is those four four methods that you can use well there is a bit more but those are the main one so it could be AB ABC classification counting rotating count coun uh location based counting and transaction based counting so transaction based counting basically is the more a product has a lot of transaction into the system the more we’re going to count it frequently and the more important they’re going to be so let’s say uh one item you’re purchasing it a lot it’s get is being used in all of your job let’s say raw material like a plate that’s being purchased a lot it’s use on tons of jobs sometime you ship it out and you just uh just it’s a purchase and sales type of things right so there is a lot of transaction into the system a lot of a lots of in and out so a lot of risk of mistakes and variation to the inventory that’s why we’re going to count it more because there is more risk that the inventory won’t be uh won’t be up to date we’re going to look then into location BAS B cting which is really we’re not going to focus on the item we’re going to focus on location that could be used in environment when you really have a bigger variety into your inventory into your stock so your product are so different that you cannot Define them up front you don’t know uh what type of product you’re going to have in two weeks or in a month so it’s so um such a big fluctuation that you don’t really know it so we’re gonna just focus on location then so what we’re going to do is we’re gonna let’s say month or month one we’re going to look at location of rack A to B then C to D and so on so really we’re just going to focus on location to make sure that we’re just counting the warehouse uh multiple times so we’re going to just do that rotation multiple times throughout the year

then we have a rot rotation count that is when we’re going to sorry we’re going to have a classification for different type of product and we’re going to count that group of product something that we do have in Genius Like a family so that could be an example of what type of group of product that you can have so let’s say one group can be uh a product line could so finished product it could be also raw material could be more precisely let’s say all of my plates that’s one groups all of my all of my Hardware that’s another group and so on so you define group of product and one by one like you you’re going to count all of them and then we’re going to move on to the next group so at the end of the year you’ve done the whole all of the groups that you have into your uh your

stocks and finally we have the ABC classification count which is based on um barola so that 20 2080 um but it’s going to be separate in three three categories so all of your product all of the item raw material anything you have in in stock will be separated in three classes class CL a B or C Class A will represent uh 10 to 20% of your quantity of stocks but the value of those stocks represents 70 to 80% so those are things that you don’t have a lot in stock but there is a high high value so in that sense those are the one that you’re going to count the most so bigger value they’re more important but there is not so much there’s not a big quantity so it’s very easy very fast to do that count uh but very fast to do that count so you’re going to do do it more often then there’s Class B that’s going to be like 30% of the quantity but 15 to 20% of the value and C 50 50 60% of quantity 5% of the value that’s approximative approximately those type of of percentage but basically category Class C will be less to count but with a higher

value so those are four method that you could put in

place

oh sorry um just realizing it that I didn’t change the title I’m very sorry uh so that is be best practice for implementation so if you want to put implement this if you want to put that in place what will be your three steps so first step First Steps we’re going to go with uh planning so first you’re going to need to define the method the method that you want to use so on the four method that we’ve talked about before select the method and then we’re going to do that item segmentation so you’re going to Define like let’s say we’re using uh ABC code you’re going to say well hey all of those item are going to be a all of those C all of those D then you’re going to Define your schedule so when are you going to count each categories that could be a bit of a try try try out periods so you could go ahead and say hey it’s the first time I’m I’m doing this I’m going to start really not so often so every three months let’s try it um let’s try it and then every three months you count CL Class A let’s say and if you see there’s a lot a lot of variation maybe you want to count it more often if it’s pretty much always the same maybe you don’t have the right class maybe it’s just your inventory is very accurate so you don’t need to do it more than what you’re already doing but I will be more into you know the process of continuous Improvement to make sure that you do in fact have the right schedule for dose count

training side of things here then after so once item are segmented you have schedule then we’re going to go into training you’re going to establish standardized process we’re going to train the staff on that new process obviously so that they understand why they need to do it um in which frequency they need to do it do it how they’re going to do it and so on how they’re going to need do it then we’re going to train them on the technology so if you’re using genius that’s what I’m going to show you on how uh they can use the genius technology to help them

counting and oops and then we have uh analysis on the uh discrepancies so this one and sorry again didn’t change the language very sorry about that um so we’re going to identify the the root cause of the discrepancy basically so the goal of all of that right is to in fact understand what are the root cause of all of the discrepancy so you can improve and don’t have all of those mistakes every time one root cause could be for example your bomb every time you’re you plan on using way more than what you actually do or the other way around right so you’re going to need to be more efficient or more have a better value at the beginning of the uh of the process at the design process that could be an example of a root cause and at the end of it then we’re going to want to implement corrective action and to you know improve and make sure that you use the right method for your reality so that is basically or three-step

plan okay so um sorry give me a second here just going to go

here so our next step will be to go right away and do just a demo in genus and how we can use how we can use this into

genus by the way I’m just going to repeat that this if you have any question on what I’ve just shown you talked about uh you can talk to me into the Q&A section

sorry she’s gonna bring danius over

okay so first thing to understand uh for those of you who haven’t seen genius before so we are into genius we are into the genius web uh for those of you who are using genius but not using the web version we are really on into the web and V16 so here um two things I’m going to use physical inventory and count sheets physical inventory will be more for the administra administration side of things so planning physic physical count planning when you want to do it who’s going to do it uh what item are you going to need to count and so on and making the final adjustment at the end the count sheet here that is really for the employee that is going to directly just do the counting so live counting uh so employee on the floor that’s going to count everything so we’re going to go we’re going to start here with physical

inventory and I’m going to create a new one so create a new one uh if you are using multiple Warehouse you’re going to be able to define those Warehouse also before and the reason why you’re doing uh physical account so you can create those different reason uh you can define those

code so once I’m here I’m having a new document I can put in a description timeline what I’m doing giving a little bit more context then what I can do is select the item that I want the employee to count two ways I can go by item or by location if I’m doing a location count method that’s what I’m going to use for all of the other one so that I that I Define type of of item then I’m going to go by this one in my case I’m going to use ABC code so I’m going to go with the code ABC so classification a so I’m just going to go and select all of those by the way those filter you’re going to be able to create those save them so you can create if you are using different type of way to classification different classification for your product you’re going to be a able to define those type of filter so Class A I could have selected just the one that I want if I want to go even more precise or my case I’m just going to select all of those all of those items that I need that needs to be count that are into that category and I’m going to add them

so now here what I have is a list of all of the material that I want to be count I can go ahead and print it out if I want to to help uh giving it to production give them into the floor just have a general idea of where you are into the process um what they need to do and so on but you don’t have to but if it can help them you can give that uh that physical inventory sheet

sorry I just had a

question someone asked what does it look like into the genius application we have not update to the functioning web version yet um it’s not it’s completely different different uh process so the one I’m showing you is really into the web because it’s a it’s a more live process the other one the other process will be more of a manual process into the desktop version so that’s why I’m really showing that V16 so that the web version since it’s uh it’s been updated and really improved

honestly so uh here we’re going to sorry so I’m just going back here I’ve creating the document so that is the list of everything I want uh the employee to count then I’m going to say hey I’m going to create accounting sheet that the employer is going to be able to see I can say well hey Pascal is going to do it that is that is my description and she’s going to do it today

and here we go you can also have workflow to help you follow through the process so in that case I was on old but now it just been assigned Pascal knows uh she’s gonna she’s going to do that cycle counting she’s being assign assigned so you can have those type of workflow to help you figure out where you are into the process at the end of it I didn’t do it but let’s say I could have another workflow that say yes it’s been completed so you can create those workflow

and then if I’m on the employee side of things that’s what I’m going to have that exactly is that is my sheet I’m assigned it’s me I need to work on this first thing I need to do well I’m going to add a new entry so I’m going to start my account one thing to understand again here I’m in a I’m on a computer but it’s really made to be used with a mobile device so could be on a tablet it could be on a phone if it’s on a phone uh or a tablet you should have a Bluetooth scanner probably because we want to scan we can type it in but the goal is to make it easier as possible so we want to we’ll want to scan the information could also be a mobile device that have a scanner integrated into the same device so again so it’s easier you can just go in and scan what they need to

scan so just going to give you example

here first thing I’m just going to talk a little bit about the setting I’m going to start like this two ways of doing the count could be location item or item location really what it does is just switching them up just for ease of use so depending on you know where the information is accessible to the employee do they want to scan location then scan scan the item or the other way around it just for them to should be easier to

use and I can enter my item enter the location and enter the quantity so if I counted five I’m going to say five save it now that’s what I’ve I’ve counted that is in a scenario when do you want the employee to give you the actual quantity the other scenario is if you want to do a quick entry so a quick entry won’t allow you to change the quantity so the goal here is really to just go in scan scan location scan item go in and scan scan scan scan scan scan so they don’t really have to count anything they don’t really have to know what they’re doing they can just go in and scan everything and then the information is going to populate itself so if I had five here I’m just going to scan it five times so both are

possible finally here tag is more for an additional information so going to use another item

here so that is more if you there’s it’s really informational purposes you can use use it for multiple purpose one way that I can see is if you have physical tag so some company are going to use really physical tag with a tag number that’s going to be associate to the item once it’s been count to help know that hey that item has been count and what is the tag related to it so for additional security let’s say uh that’s an example when you can use a tag but you could use a tag for other things like just let’s say I could just put in my name just to confirm that it’s me who has uh has been counting it and then if there’s a mistake we can go back and you’re going to see it pretty easily if there’s a tag it might be just easier to know who’s done the mistakes or you know what was the tag related to the mistakes and so on so again more for additional information purposes uh if you’re interesting it interesting in it and we’re going to save

this so once I’m done I’ve counting counted everything turns out I didn’t have all of the other item so I’m good I count in everything and that’s it so if I at that point that’s where I can say well hey I could have just say yes it’s been completed or so on to identify uh Administration if I’m going back into the administration side of things here

once this one is complete I can lock it so the reason why we want to lock it is like I said I can have multiple ones so could be hey today today this one I’ve done the count I’m looking it so no one can modify it because you know that’s the final version so so you don’t have any mistakes or anything that that could be the reason but once it’s locked then that means it’s completed it’s official and and I’m going to be able to consolidate and make sure that I have the right quantity and correct my inventory so now the data is live the data is there the only thing that I need to do to do now it’s

really consolidate everything so now I have my right quantity based on the information that I count I can go in and approve everything you could do that in multiple step obviously don’t need to do it all into the same day but I can approve and once I’m satisfied with all that I can confirm and all of my quantity will be up to date into the system so really what it does is um added I added quantity because they were not there and I adjust all of the other quantity uh because I didn’t count them so they were not in stock so you can create or you can take out a quantity into your stock the system will be able to manage both

reality trying to see I think yeah I think that’s pretty much uh what I wanted to show you on the demo side of things so really we created created the document then people are going to be able to count it it’s all live it’s all connected and everything could be corrected uh directly into the system don’t need to don’t need to do any manual information there the only other thing that I want to say is that you don’t need to predefine the list of item if you don’t know and you just don’t want them to be able to count and modify you know when they see an error or something they can just go in and right away do those type of count even though you didn’t predefine a list that is still possibility

also so just a little uh quick uh feature information so of what we’ve just seen we can do blind count which is what I’ve just told you so without selecting the item there’s really a quick scanning consolidation will be done all in the same place uh and you can do inventory cre creation and all of the import of the value will be done automatically into the system and with live

data and that is it did you have any question on the feature that I’ve just shown you I’ve seen I have some question here but if you do I don’t hesitate to speak to me into the Q&A

section is this only available in vers version 16 uh yes so it’s really what I’m showing you it’s really version 16 which is what we are now so let’s say if you are a future uh future customer that’s the version that you’re going to be in if tomorrow you’re signing with us it’s version 16 if you are in other version uh I’m going to change directly to the next step here really you you can go and talk to our customer success team you can see uh how you could go about having the the new version so really just talk directly to our customer

success if you have any question for me so more on the technical side of things uh you want to know a little bit more you can also uh speak to me so here this is my email address but if not if you want to know if you want to have an additional demonstration or if you want to know for migrating to version 16 you can always talk to your customer Representatives so if there’s no other question I can wait maybe one minute but if there’s no other question then uh that’s it for today so thank you for your time and have a nice

day okay so I don’t see any other questions so GNA write wrap this up thank you again for your time have a nice day