Why accuracy matters
Inventory inaccuracy costs money at every turn. **Stockouts** lose sales and damage customer relationships. **Overstocks** tie up cash and increase carrying costs. **Mispicks** cause returns, reshipping costs, and refunds. **Expedited orders** to cover shortages cost 3–5x standard shipping. Most companies don't know their true accuracy—they discover problems when customers complain. A warehouse running at 95% accuracy (sounds good, right?) has 1 in 20 locations wrong. That's thousands of errors in a mid-sized facility.
Root causes of inaccuracy
Inaccuracy comes from process failures, not bad employees. **Receiving errors**: wrong quantities, missed items, mislabeled products. **Putaway mistakes**: items placed in wrong locations or not scanned. **Pick errors**: wrong item, wrong quantity, wrong location. **Adjustment shortcuts**: fixing symptoms without finding causes. **System gaps**: transactions not captured, timing delays, integration failures. Identify your top 3 root causes through variance analysis before trying to fix everything.
Process controls that work
**Scan everything**: No exceptions, no manual overrides without supervisor approval. **Verify at boundaries**: Count at receiving, count at shipping, count at every handoff. **Enforce put-confirm**: Don't credit inventory until the putaway scan confirms location. **Blind counting**: Counters shouldn't see expected quantities to avoid confirmation bias. **Segregate duties**: Different people receive, pick, and investigate variances. **Close the loop**: Every variance gets investigated and root-caused, even small ones.
Measuring and monitoring accuracy
Track multiple accuracy metrics: **Location accuracy**: % of cycle counts matching expected. **SKU accuracy**: % of SKUs at correct total quantity. **Dollar accuracy**: variance as % of inventory value. **Order accuracy**: % of orders shipped correctly. Set targets by tier: 99% minimum, 99.5% acceptable, 99.9% excellent. Report weekly with trend analysis. Investigate any metric declining two weeks in a row. Compare accuracy by zone, shift, and process to identify problem areas.
Building an accuracy culture
Accuracy requires cultural commitment, not just process rules. **Leadership visibility**: Managers must prioritize accuracy visibly. **Metrics transparency**: Post accuracy scores where teams see them. **Root cause focus**: Fix processes, don't blame people. **Recognition**: Celebrate individuals and teams achieving targets. **Training investment**: Continuous training on why accuracy matters. **Tooling support**: Give workers the scanners, labels, and time they need. Accuracy culture builds slowly but pays dividends forever.