Inventory Management
Inventory accuracy: where to start when you don’t trust the numbers
Before optimizing stock levels, you need records you can rely on. A practical sequence for restoring confidence in inventory data.
BoiroMetric Consulting · · 6 min read
Many organizations want to reduce inventory or improve service levels. Both goals depend on something more basic: knowing what you actually have. When stock records are unreliable, every downstream decision — purchasing, planning, valuation — inherits the error.
Measure accuracy before fixing it
Start with a simple sample count across a representative mix of items and locations. Record both the count variance and the likely cause. The causes matter more than the percentage.
Common root causes
- Receipts recorded before or after goods physically arrive
- Unit-of-measure mismatches between purchasing and storage
- Unrecorded movements between locations
- Adjustments made without review or reason codes
Build a sustainable counting routine
Cycle counting by value and velocity is usually more effective than an annual full count. The goal is not only to correct records but to learn why they drift.
Connect to finance
Accuracy work should involve finance from the start. Agreeing how adjustments are approved and recorded avoids month-end surprises and builds shared confidence in the numbers.