Improve Your Inventory Accuracy: A Comprehensive Guide
Posted on Aug 14, 2022 at 08:08 PM
So, suppose you are running a business that is growing amazingly and managing more and more orders every day. In that case, you must enhance your inventory accuracy to maintain your hard work, gain results, and match your customers' requirements.
Start by building accurate physical stock records, including items, goods, supply chain, and any included inventory detail necessary for your business's operations and values.
This blog post will share the inventory accuracy definition, importance, calculation methods, and the best new tips to improve your inventory management accuracy.
What is Inventory Accuracy Basis?
Inventory accuracy refers to the difference and variance between the stock items records and what is physically counted in the company's inventory; in other words, inventory accuracy does significant research and closely matches cited value between the paper and the reality.
Inventory accuracy is critical due to its impact on inventory quality, customer services, sales, avoiding stacking products, organisation's profit, and providing the necessary stock plans for the business production.
Companies rely on facilities management with big data for Soft and Hard Facilities when improving accurate inventory records.
How to Calculate Inventory Accuracy?
Most corporates, even those using inventory management software tools, show a rate of an average of 70 per cent due to high management practices errors or simply many inaccurate manual items counting.
However, if you want an efficient inventory accuracy rate, you must have a stock accuracy record close to 97%.
You can calculate your inventory accuracy rate by manually counting the available physical items in the stock, dividing the number by the stock count on record, and multiplying the result by 100 to get your accurate inventory accuracy rate.
6 Steps to Improve Your Inventory Accuracy:
After knowing the impact of the warehousesâ inventory accuracy on your business, sure you are interested in ways to apply this vital challenge in your industry management technique:
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Count on Real Time Tracking:
When you aim at 97% in your inventory accuracy rate, you must keep your inventory records updated with today's official counts. Moreover, the following process should be integral from the items receiving, order taking, till actual clientsâ delivery fulfilment to have complete information.
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Organise Your Warehouse:
Setting a clear space for each itemâs category will not only boost your inventory accuracy, lower time wasted just for searching, and make the goods operations management even faster, but also save your costs with everything going according to your business's goal.
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Use Inventory Labels:
Using a straightforward labelling system, such as colour labelling and barcoding, will increase the workflow quantity as well-organised inventories equate top businessesâ efficiency without any distribution.
Even labelling may take time, but once it is done, the inventory accuracy will be better than ever, and workflow processes performance will be faster.
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Effective Cycle Counting:
The concept of cycle counting is to always count your stock inventory by spaces and to constantly update your physical records based on actual reports, improving your inventory accuracy and making your stock management more effective without any problems.
Cycle counting means you do not have to shut down work each quarter to achieve items inventory.
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Limit Physical Inventory Access:
Not only to hold responsibility for any goods amount lost or to track the inventory accuracy disparity but also to have dedicated workers and managers who manage all units. Everyone from workers and retailers needs to go to them to get items of the stock, which will keep the total recorded measures accurate and organised without any error or financial loss.
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Update Inventory Management Technology:
We are in 2022, so why to waste time and only count on manual inventory when there are different available inventory software; moreover, labelling, organising, and documenting will effectively empower your inventory accuracy rate, present results, and meet your benchmark report.
Finally,
Having a reasonable inventory accuracy rate ensures having a strong facilities management (FM) process, which is necessary for your business's perpetual, and that is why facilities management courses Dubai offer more than required and related knowledge for all successful managers.
