InventoryJun 03, 202610 min read
How to move from 82% to 99.6% inventory accuracy in 90 days
A practical guide to cycle counting, bin locations, barcode scanning, and the process changes that make technology stick.
Most distributors and manufacturers we meet start with an inventory accuracy of around 80% to 85%. This means that for every 10 items the system claims are in stock, 2 are either missing, damaged, or stored in the wrong warehouse.
This inaccuracy results in stockouts, delayed dispatches, double-ordering, and wasted warehouse space.
The 90-Day Blueprint to 99.6% Accuracy
- Implement Bin Locations: Every product must have a address. If an item is just "in the warehouse", it is lost. Subdivide your warehouse into zones, aisles, racks, and bins, and label them clearly.
- Enforce Directed Putaway: When stock arrives at the receiving dock, the system must dictate exactly where it goes based on size and velocity. Pickers should never guess where to put inventory.
- Barcode Scan Every Movement: Every pick, pack, putaway, and stock transfer must be scanned. No exceptions. If it isn't scanned, it didn't happen.
- Daily Cycle Counting: Stop doing annual inventory audits. Instead, have a team count 50 random SKUs every morning. Reconcile errors immediately to find the root cause of discrepancies.