By Craig Dowley
Warehouses and distribution centers operate from several important KPIs, including order fulfillment accuracy, order lead time, capacity utilization, throughput, and labor productivity. All these performance indicators can be positively or adversely impacted by the facilities overall inventory accuracy. Most industry professionals recognize the importance of inventory accuracy as it measures how well the recorded inventory levels (found in the WMS or ERP) match the physical inventory levels on the warehouse floor and racks.
When warehouses enjoy high inventory accuracy levels, there are a multitude of benefits:
Inaccurate inventory records can lead to a range of problems, including lost sales, excessive labor, stockouts, overstocking, inefficient warehouse operations, and increased costs associated with inventory management. By prioritizing inventory accuracy and implementing best practices such as regular cycle counting, businesses improve their inventory management processes and achieve greater success.
A good inventory accuracy level is generally considered to be above 95%. This means inventory records are within 5% of the actual physical inventory levels in the warehouse. Even for a warehouse that has 95% accuracy, increased rates will generate significant operational savings and sales with each percentage point increase.
Achieving and maintaining a high level of inventory accuracy is critical to the success of any business that relies on inventory to operate. However, the ideal inventory accuracy level may vary depending on the industry, the size of the business, and other factors. For example, businesses with high-value or perishable inventory may require even higher levels of accuracy to avoid losses due to theft or spoilage.
Vimaan computer vision solutions ensure warehouses receive the most up to date inventory truth. All Vimaan solutions capture and digitally store each read, providing digital PROOF every step of the way including during the critical cycle counting process. StorTRACK improves the speed and quality of inventory audits and empowers warehouse management to achieve their highest inventory accuracy levels and exceeding their operational key performance indicators.