Top Ten Reasons for Inaccurate Inventory Records - Warehouse Best Practices

There are two areas in business, that generally not handled very well, these are firstly, Forecasting and Demand Management and secondly, achieving 100% real-time inventory records in the Store or Warehouse..

Today we will concentrate on the latter, Inventory Accuracy. When we ask Management the accuracy levels of their inventory,we usually get the replies; ‘OK, not too bad, could be better’, rarely do we actually get a percentage figure. If management understood, or even measured,the cost of poor inventory accuracy, they might then do something about it. Sometime ago a survey was done of 1100 companies and it was established that for a company of $100 – $200m turnover, poor inventory accuracy could cost the company in the region of $7m a year, now this is a waste. Over the years we have developed, what we call, our ‘World Class Warehouse Assessment, which compares the company’s warehouse operations to what we would consider to be a World Class Warehouse Operation. The assessment contains over 30 aspects of warehouse best practices and gives a