What Is Cycle Counting and Why Is It Effective? Cycle counting is the process of counting a small, predetermined set of goods and materials frequently rather than performing a full physical inventory once per year. Effective cycle counting requires counting a certain number of bins each day, and each part is counted at a prescribed frequency. The Council of Supply Chain Management Professionals defines cycle counting as an inventory control and management practice that refers to a process of regularly scheduled inventory counts (usually daily) that “cycles” through your inventory. Users determine how often certain items or locations are counted using frequency or dollar values segregated into “ABC” categories.